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Public safety, jobs a concern for bankrupt California city
The shroud of a sign remains on an abandoned Vallejo Police Station May 7, 2008 in Vallejo, California.
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Jeremy Hobson: Well, to a completely different sector of the economy now. You've heard about all the budget problems facing cities and states. Today one of the first cities to file for bankruptcy after the financial crisis in 2008 is trying to get out of it. A judge is set to rule on a plan to exit from bankruptcy in the Northern California city of Vallejo.
Kelley Weiss reports.
Kelley Weiss: There's a sign outside of Vallejo's old fire station headquarters: "Closed, in case of emergency call 911." But Vallejo Fire Chief Doug Robertson says 911 isn't a sure bet anymore. There used to be four dispatchers to answer the phones. Now there are two.
Doug Robertson: It's serious business when somebody's breaking into your home or your house is on fire and you call and no one picks up the phone. We get those complaints and they're legitimate.
The city shut down three of its eight fire stations after filing for bankruptcy in 2008.
On a Monday night, Robertson's car bumps along roads full of potholes. The city has put street maintenance on hold, and the police department has lost more than 30 percent of its officers. Robertson grew up in this town and says residents are more emotionally and financially strained than before.
Robertson: Well economically, it's as bad as I've ever seen it.
The city has a plan to get services restored. It hinges on paying creditors what it can. And those creditors are mostly city employees. Some could end up getting 5 cents on the dollar for retiree health benefits and back pay.
The next step is to jumpstart the economy. Michael Coan hopes to attract private businesses. He's the board chairman of Vallejo's Chamber of Commerce. He says a faster permitting process and deferral of some start-up costs could help do that.
Michael Coan: Something to give them an incentive to say, you know hey, Vallejo's offering this, Vallejo wants us here, they're really willing to work with us -- let's go here, let's go to Vallejo.
Coan says landing big-box stores would create jobs. And draw traffic from the highway running into the San Francisco Bay area. That could entice a large retailer, despite the city's debt problems.
Malachy Kavanagh: Nobody builds a store based on the past; they're basing it on the futures.
That's Malachy Kavanagh with the International Council on Shopping Centers. Kavanagh says local consumers are starting to spend more, and retailers are looking to expand again after the recession.
In the meantime, city leaders say Vallejo still has to get out of bankruptcy and restore confidence in public safety.
From Vallejo, Calif., I'm Kelley Weiss for Marketplace.
Big Box Stores are not necessarily the solution. Check out the book Big Box Swindle for some interesting perspective. Smaller towns are choosing to retain or enhance their character -- and keeping more of their hard-earned $ local -- by looking at local, regional and independent businesses to enrich their coffers AND their communities. I've seen it work!
Big box stores? Really?
Vallejo's revenue has dropped (I'm quoting from memory here) from about $90 million to $65 million. Walmart, before it left, took in about $400K a year of sales tax, which the city did't get to keep all of.
That's all lot of big box stores to make up the gap. You cannot retail your way out of Vallejo's situation. My property taxes have dropped from over $5K annually to less than $2K, and my property value along with it. That property tax revenue gap cannot be plugged easily without improving Vallejo's long term economic future and seeing the corresponding rise in home prices. Retail won't do it. Improving the schools could.
As a Vallejo resident I'm angry that we're short changing retirees. Most retirees have modest pensions, while the current police and fire can retire at 90% of the final salary (not one earns less than $100K, before overtime). And the union has blantently used those with modest pensions to protect the current cops, who'd prefer raises over more cops on the street.
At least a few folks will be employed scrapping the "mothball fleet" that has been fouling nearby Suisun bay...these ships were being hauled all the way to maryland! Some were built at the old Mare Island shipyards, now a redevelopment area. Big box stores? These are problematic-in fact,the subject of a recall effort across the Strait in Hercules.
This story needs a reality check.
I say get out why you can! The is unheard of to happen and if you think there is going to be a bouncine back think again. We dont have the same industry that we had before. Our, no we have let all of our companies leave this great country for cheaper labor. sale what you can and get to higher ground. China is in route to collect on our debt. The party is coming to an end.
