Stockton, Calif., could become biggest city to go bankrupt

STOCKTON, Calif. (AP) — The city of Stockton in California's crop-abundant Central Valley has the second-highest foreclosure rate in the nation and one of the highest crime and unemployment rates. It was named America's most miserable city in a national magazine — twice.

And now, officials say this river port city of 290,000 is on the brink of insolvency and could become the nation's largest city to fall into Chapter 9 bankruptcy protection.

The City Council voted late Tuesday to use a new California law to enter mediation with its creditors. City leaders said they hoped the plan to renegotiate Stockton's debt would help it avoid bankruptcy.

Dozens of residents spoke against the move, saying they feared it would do the opposite, KRCA-TV reported.

"If they vote for mediation, it is the first step towards bankruptcy," former City Manager Dwane Milnes said. "That means 1,000 people could lose retirement benefits."

Stockton will be the first city to test the state law, Assembly Bill 506, which is less than 2 months old. It requires local government agencies to undergo mediation or hold a public hearing and declare a fiscal emergency before filing for bankruptcy.

In 2008, Vallejo became the biggest California city to file for bankruptcy, and it emerged from bankruptcy last year.

In recent years, thousands of new homes mushroomed in Stockton, part of a housing boom in suburban development that attracted buyers from the Bay area and beyond.

But when the economy crashed and the construction bubble burst, Stockton was battered by foreclosures and lost income from property taxes and other fees. Multi-year labor contracts with escalating costs added to the burden, forcing officials to make deep emergency cuts to the city payroll, including its police department.

"It's been so challenging. Since 2008, the whole market was essentially turned upside down," said Randy Thomas, a Stockton real estate broker with the Cornerstone Real Estate Group. "A lot of folks were losing their homes. A lot of people were getting evicted, and it's been tough on a lot of people."

City leaders say Stockton could soon be unable to pay its debts. The city has a $15 million deficit — $6.6 million from the last fiscal year and $8.7 million expected for the current fiscal year, according to documents.

Forecasts also show deficits ranging from $20 million to $38 million for the fiscal year 2012-2013 and increasing in subsequent years.

Some residents are losing faith.

Marty Carlson, a waitress at Bradley's American Bistro in downtown Stockton, said business, along with her tips, has been on the decline for years. She's had enough, she said, and plans on leaving Stockton soon.

"They're (the city) not the only one going bankrupt," Carlson said. "It's time to move on. I'm ready."

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Wozniacka reported from Fresno, Calif.

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Follow Gosia Wozniacka at http://www.twitter.com/GosiaWozniacka

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Online:

Stockton Council agenda: http://bit.ly/zX9EO1

Stockton Council: http://bit.ly/wpzKoR

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Stockton, Calif., could become biggest city to go bankrupt

STOCKTON, Calif. (AP) — The city of Stockton in California's crop-abundant Central Valley has the second-highest foreclosure rate in the nation and one of the highest crime and unemployment rates. It was named America's most miserable city in a national magazine — twice.

And now, officials say this river port city of 290,000 is on the brink of insolvency and could become the nation's largest city to fall into Chapter 9 bankruptcy protection.

The City Council voted late Tuesday to use a new California law to enter mediation with its creditors. City leaders said they hoped the plan to renegotiate Stockton's debt would help it avoid bankruptcy.

Dozens of residents spoke against the move, saying they feared it would do the opposite, KRCA-TV reported.

"If they vote for mediation, it is the first step towards bankruptcy," former City Manager Dwane Milnes said. "That means 1,000 people could lose retirement benefits."

Stockton will be the first city to test the state law, Assembly Bill 506, which is less than 2 months old. It requires local government agencies to undergo mediation or hold a public hearing and declare a fiscal emergency before filing for bankruptcy.

In 2008, Vallejo became the biggest California city to file for bankruptcy, and it emerged from bankruptcy last year.

In recent years, thousands of new homes mushroomed in Stockton, part of a housing boom in suburban development that attracted buyers from the Bay area and beyond.

But when the economy crashed and the construction bubble burst, Stockton was battered by foreclosures and lost income from property taxes and other fees. Multi-year labor contracts with escalating costs added to the burden, forcing officials to make deep emergency cuts to the city payroll, including its police department.

"It's been so challenging. Since 2008, the whole market was essentially turned upside down," said Randy Thomas, a Stockton real estate broker with the Cornerstone Real Estate Group. "A lot of folks were losing their homes. A lot of people were getting evicted, and it's been tough on a lot of people."

City leaders say Stockton could soon be unable to pay its debts. The city has a $15 million deficit — $6.6 million from the last fiscal year and $8.7 million expected for the current fiscal year, according to documents.

Forecasts also show deficits ranging from $20 million to $38 million for the fiscal year 2012-2013 and increasing in subsequent years.

Some residents are losing faith.

Marty Carlson, a waitress at Bradley's American Bistro in downtown Stockton, said business, along with her tips, has been on the decline for years. She's had enough, she said, and plans on leaving Stockton soon.

"They're (the city) not the only one going bankrupt," Carlson said. "It's time to move on. I'm ready."

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Wozniacka reported from Fresno, Calif.

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Follow Gosia Wozniacka at http://www.twitter.com/GosiaWozniacka

___

Online:

Stockton Council agenda: http://bit.ly/zX9EO1

Stockton Council: http://bit.ly/wpzKoR

View the original article here

Officers hurt in Occupy clash at Calif. Capitol

SACRAMENTO, Calif. (AP) — At least two law enforcement officers were injured Monday during a clash with members of the Occupy movement who were at the state Capitol to counter a rally by a group protesting violence by blacks against whites in South Africa.

The clash erupted in the afternoon as California Highway Patrol and Sacramento police officers were escorting about 35 members of the South Africa Project to a parking garage after their protest outside the Capitol building.

About 50 members of Occupy Oakland began throwing cans and bottles at the South Africa group and at the officers. The Occupy members then clashed with the officers as people with the pro-whites group hurried into the parking garage.

"It was the activists across the street engaging the officers," said CHP officer Sean Kennedy.

Two officers suffered minor injuries and were taken to a hospital. CHP Capt. Andy Menard said one officer who was struck in the face by an object was released from the hospital. The second officer was getting X-rays after apprehending a person suspected of throwing objects, Menard said.

Kennedy said the officer who was struck by an object was showing signs of possibly being affected by some type of chemical or pepper spray.

The CHP arrested three members of the Occupy group on suspicion of disobeying an officer.

The violence abated after a large contingent of law enforcement arrived at the scene, about a block from the Capitol.

The clash followed a tense afternoon during which peace officers kept the two groups separated outside the Capitol.

Members of the South Africa Project were trying to draw attention to what they said is black-on-white violence in that country. Organizers said similar demonstrations were planned in other states and elsewhere in California.

The group was mostly male and white, some with shaved heads and prominent tattoos.

Many of the Occupy protesters, some wearing hoods or masks, said they came from the San Francisco Bay area to counter what they called a racist group affiliated with former Louisiana Ku Klux Klan leader David Duke.

Morris Gulett, a spokeman for the South Africa Project, called the clash in Sacramento unfortunate.

"It's not surprising that the counter-protesters got in the way of the peaceful march we wanted it to be," Gulett said. "Our intention was to conduct a peaceful march."

Occupy protesters had been cursing at the South Africa Project rally and at officers keeping the two sides apart.

Ryan Stark, 26, who said he is part of Occupy Sacramento, said he joined the protesters challenging the South Africa Project protesters because there needed to be a showdown.

"I didn't throw anything ... but these sorts of demonstrations need to happen," he said, referring to the counter protest. "They do have the right to say what they want, but we're not going to let it fly."

The public was being kept away from the scene of the confrontation by police officers, who were not commenting to reporters. The city's light rail system was stopped through the section of downtown where the clash occurred, and commuters were not allowed to leave the area.

Earlier in the day, a 17-year-old girl with Occupy Oakland was taken to Juvenile Hall after she became combative and assaulted an officer who asked her to pick up litter, Kennedy said.

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Associated Press photographer Rich Pedroncelli contributed to this report.

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Officers hurt in Occupy clash at Calif. Capitol

SACRAMENTO, Calif. (AP) — At least two law enforcement officers were injured Monday during a clash with members of the Occupy movement who were at the state Capitol to counter a rally by a group protesting violence by blacks against whites in South Africa.

The clash erupted in the afternoon as California Highway Patrol and Sacramento police officers were escorting about 35 members of the South Africa Project to a parking garage after their protest outside the Capitol building.

About 50 members of Occupy Oakland began throwing cans and bottles at the South Africa group and at the officers. The Occupy members then clashed with the officers as people with the pro-whites group hurried into the parking garage.

"It was the activists across the street engaging the officers," said CHP officer Sean Kennedy.

Two officers suffered minor injuries and were taken to a hospital. CHP Capt. Andy Menard said one officer who was struck in the face by an object was released from the hospital. The second officer was getting X-rays after apprehending a person suspected of throwing objects, Menard said.

Kennedy said the officer who was struck by an object was showing signs of possibly being affected by some type of chemical or pepper spray.

The CHP arrested three members of the Occupy group on suspicion of disobeying an officer.

The violence abated after a large contingent of law enforcement arrived at the scene, about a block from the Capitol.

The clash followed a tense afternoon during which peace officers kept the two groups separated outside the Capitol.

Members of the South Africa Project were trying to draw attention to what they said is black-on-white violence in that country. Organizers said similar demonstrations were planned in other states and elsewhere in California.

The group was mostly male and white, some with shaved heads and prominent tattoos.

Many of the Occupy protesters, some wearing hoods or masks, said they came from the San Francisco Bay area to counter what they called a racist group affiliated with former Louisiana Ku Klux Klan leader David Duke.

Morris Gulett, a spokeman for the South Africa Project, called the clash in Sacramento unfortunate.

"It's not surprising that the counter-protesters got in the way of the peaceful march we wanted it to be," Gulett said. "Our intention was to conduct a peaceful march."

Occupy protesters had been cursing at the South Africa Project rally and at officers keeping the two sides apart.

Ryan Stark, 26, who said he is part of Occupy Sacramento, said he joined the protesters challenging the South Africa Project protesters because there needed to be a showdown.

"I didn't throw anything ... but these sorts of demonstrations need to happen," he said, referring to the counter protest. "They do have the right to say what they want, but we're not going to let it fly."

The public was being kept away from the scene of the confrontation by police officers, who were not commenting to reporters. The city's light rail system was stopped through the section of downtown where the clash occurred, and commuters were not allowed to leave the area.

Earlier in the day, a 17-year-old girl with Occupy Oakland was taken to Juvenile Hall after she became combative and assaulted an officer who asked her to pick up litter, Kennedy said.

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Associated Press photographer Rich Pedroncelli contributed to this report.

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Immigration agent shot dead at Calif. federal duilding

A U.S. Immigration and Customs Enforcement agent is dead after gunfire at the agency's offices in a California federal building.

In the incident at the Glenn M. Anderson Federal Building in Long Beach, Calif., an ICE agent allegedly opened fire on two colleagues, leaving one wounded with multiple gunshots, another unharmed, and the initial shooter dead, ICE told ABC News.

Earlier, multiple published reports citing the Long Beach Police described a second agent dead and the third wounded, but those reports were mistaken, ICE said.

The incident began as an unspecified dispute between a supervisor and a subordinate, The Los Angeles Times reported.

It occurred at 5:30 p.m. PT inside the ICE offices, according to a written statement by ICE, which added that the victims were with ICE's Homeland Security Investigations unit.

"One of the agents died at the scene," the statement said. "The second agent was transported to a local hospital where he is listed in stable condition. The names of the agents are not being released pending notification of the next of kin. The shooting is being investigated by ICE's Office of Professional Responsibility, the Long Beach Police Department and the FBI."

After the shootings, television aerial footage showed at least one victim being transported under police escort from the federal building to a hospital.

Later, police conducted a security sweep of the building, ABC News station KABC reported.

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