Judge Orders City Of Stockton To Respond To Bank By Friday

STOCKTON (CBS13) – Hoping to avoid bankruptcy, the city of Stockton must now respond to a lender about whether the city plans to pay back the bond for three parking garages.

A judge ruled that Stockton has until Friday to respond to Wells Fargo Bank. The city defaulted on an $800,000 bond payment for three garages in the area after.

Last month, city officials decided not to make payment with others as the city restructures in an effort to avoid bankruptcy.

But people worry that if the city doesn’t pay back the bond, a bank or a private business will increase parking prices and that will deter people from coming downtown.

“It’s absolutely going to go up,” one woman said. “I’m sure it will be up to $4 an hour.”

“It would cost too much,” another said. “The prices I’m sure would go up.”

The city says it’s losing money on the garages every year. Staffing and maintenance costs along with repaying the debt keep Stockton paying out more than the prime parking brings in.

The frustration was clear at Tuesday night’s council meeting, where there’s no consensus on how to dig the city out of its fiscal crisis.

“You need to put a freeze on everything including what the city manager can do in hiring people,” one member of the public said.

“I would like you to tell Wells Fargo and all the other people we owe money to, take a number and get in line, cause we can’t pay you,” said another.

The city of Stockton is desperate to avoid another negative title – the largest in America to file for bankruptcy

The city is now in confidential mediation with its creditors in the hopes of avoiding bankruptcy.

Comments

One Comment

  1. terry says:

    it wouldnt be the fact that stockton is installing extremley high dollar buildings made of glass over paying there city managers. no thats not the problem.

  2. ............. says:

    STOCKTON (CBS13) – Hoping to avoid bankruptcy, the city of Mexico must now respond to a lender about whether the city plans to pay back the bond for three Taco Truck parking garages.

  3. Jonus says:

    Stockton should just file Bankruptcy and get it over with. It is obvious that these City leaders have spent beyond there means when times were good. Witch means that they have ripped the public off and now are trying to wiggle out of being caught. Stockton start off with firing the whole City staff as well as the whole City council. Then just maybe you can file bankruptcy and start paying back the creditors.

    1. GOLDFINGER says:

      The city leaders had bankruptcy on their minds now for some time.
      That money used for the bankruptcy proceeding (2 million) can go too other place needed here in Stockton. Like are police force. The city can use that money to hire more police officer’s.

  4. GOLDFINGER says:

    This is sad. Wells Fargo was the first in line too ask for a bail out from the Feds.
    Fargo needs to give the City of Stockton a bail out too. They should take one for the city.

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