Bank repossesses near-bankrupt Stockton’s new City Hall building
A bank has repossessed an eight-story former Washington Mutual building from the city of Stockton, planned to be the new City Hall.
The building was repossessed after the city defaulted on a bond in an effort to keep the city from bankruptcy.
City spokesperson Connie Cochran said the repossession is part of a bigger plan for Stockton to regain its financial footing. The city defaulted in order to still have money for public safety, Cochran said.
"Unfortunately, this [City Hall] is just one of the underperforming assets the city has and we had to take this step to maintain basic public safety services in our community," said Cochran.
Three Stockton parking garages were also repossessed in April.
As the city teeters on the edge of bankruptcy, a contingency plan is now officially on the table for the June 5 City Council meeting.
The Record newspaper in Stockton reported that the City Council will also vote on whether to give the city manager authority to file for Chapter 9 bankruptcy protection if officials do not reach an agreement with Stockton's creditors during mediation.
-- Fox 40 Sacramento