Courtesy of Mish.
Add Stockton, California (population 292,000) to the list of cities bankrupted because of bad management and over-generous public union wages and benefits.
Please consider New Stockton City Hall building seized by Wells Fargo; city preps bankruptcy contingency plan
The Stockton City Council announced Wednesday that they will look at bankruptcy contingency plans after Wells Fargo seized the new city hall building.
The city paid $35 million to buy the 8-story building, but was not able to move in because of its money problems, and recently stopped making debt payments all together. This is the fourth building that was repossessed by Wells Fargo; the bank seized three city parking garages for the same reason.
At the June 5 Stockton City Council meeting, members will look at a contingency plan if mediation between the city and creditors failed, city spokesperson Connie Cochran said. For the past two months, the city, under AB 506, has been in a mediation process with creditors to come up with a payment plan in order to avoid bankruptcy.
Incompetent City Management and Unions to Blame
The firefighters’ union put together a list of 10 wasteful things the city has done wrong totally about $116 million, including $48 million for the new city hall.
$417 Million Healthcare Liability
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