Business
Fontana's Black mayor is cracking down on Latino street vendors. Both sides allege racism
FONTANA, Calif. — At meeting after meeting, activists, social justice groups and residents took their turn at the lectern in the Fontana City Council chambers in the fall to sound off against Mayor Acquanetta Warren. Their denunciations of the city’s first Black mayor were relentless, and their anger resonated beyond the council chambers.
For months, Warren had been the driving force behind a crackdown on street food vendors selling goods without proper permits. Under a series of regulations approved by the City Council, unlicensed sellers could be arrested on misdemeanor charges. Their food and equipment were now fair game to impound and trash.
“It’s time to take a stand,” Warren told the packed chamber at one October meeting, standing firm against the onslaught. “We’ve tried everything we can to help people get legal. … Now it’s time to grab a couple of hammers.”
In a city where Latinos make up the majority of residents, some view the criminalization of street vending as a direct attack.
“It’s fascist, classist, racist, xenophobic and a grave injustice,” Fontana resident Evan Webb, a staunch ally of local activist groups, told the council at another October meeting. “Because of your votes, people will be traveling to poverty, debt, trauma and deportation.”
In the months since, activists have continued to ramp up their campaign against Warren, a Republican who has been open in her concerns about illegal immigration. Their verbal attacks, some laced with profanity and racial overtones, ripple across social media. And even as critics accuse city leaders of an ethnically motivated crackdown on working-class Latinos, Warren’s defenders say the backlash itself is racist in nature — a move to undermine a clear-eyed leader because she is a Black woman.
“I have followed this anti-Black behavior brought on by this immigration group since it surfaced back in October,” Hardy Brown, a longtime activist in San Bernardino’s Black community, said during a December City Council meeting. “They have called us everything but a child of God and using racial stereotype language I choose not to repeat.”
Fontana city leaders say their crackdown on street vending is about protecting health and local businesses. Activists call it an attack on Latino culture.
(Gina Ferazzi / Los Angeles Times)
The cat-and-mouse game between unlicensed street vendors and city code enforcement is not new for Southern California. It’s been an ongoing point of tension in relatively white suburban communities for years, particularly in Orange County’s posh beach cities. But what’s unfolding in Fontana represents a new front in the battle as the debate spreads into unfamiliar terrain: the Inland Empire, where large numbers of Latino families are relocating to escape unaffordable housing in Los Angeles and Orange counties.
In Fontana, the talking points in the standoff are in many ways the same as what’s played out elsewhere: City officials say unlicensed vendors represent a health risk to consumers, unfair competition to bricks-and-mortar restaurants and lost civic revenue from unpaid taxes and fees. Those defending street vendors say their trade offers an economic lifeline to hardworking people and, for many Latinos, calls up a nostalgic mainstay of Mexican culture.
But the discourse in Fontana has also veered into barbed and more personal territory, highlighting the growing pains of a Latino-majority community led by Warren, a controversial figure determined to establish Fontana as an up-and-coming suburb.
Alfonso Gonzales Toribio, an associate professor of ethnic studies at UC Riverside, notes another distinction: Along with Warren, many of those taking on street vendors in Fontana are Latinos and other people of color using nonracial terms to say why it’s a problem.
“There is this class dynamic that they’re trying to sell the Inland Empire as sort of the middle-class suburban alternative to living in Orange County,” Gonzales Toribio said. “And in doing that, they’re trying to create the image of these pristine uniform suburban spaces that don’t have room for street vending.”
Fontana officials say they pursued ordinances criminalizing street vending only after the city had exhausted efforts to bring unlicensed vendors into compliance.
(Gina Ferazzi / Los Angeles Times)
Fontana indeed has transformed since its founding. Unofficially dubbed “Fontucky,” the area was once home to agriculture and rolling hills and later to the Kaiser Steel mill, the largest steel plant on the West Coast during World War II.
Warren joined the City Council in 2002, and her successful mayoral bid in 2010 was lauded as a historic turning point in a city with a cruel history of segregation. As mayor, she has courted warehouse development, bringing in scores of facilities and hundreds of jobs. Critics of the approach dub her “Warehouse Warren” and question the environmental fallout of a local economy reliant on mass distribution centers and truck traffic.
From the start, Latino activists also took issue with her stance on illegal immigration.
Street vendors are quick to pull out their cellphones and call up a clip where Warren says, “If you get here illegally, you need to learn how to speak English. You need to understand the culture in America.” The doctored clip is presented as if Warren said this amid street vending discussions. In fact, the clip is from a 2010 council meeting where a San Bernardino public official called Warren racist after a newspaper story quoted her expressing support for a controversial Arizona law, passed that same year, that gave police broad powers to detain anyone suspected of being in the country illegally. Portions of the measure were subsequently voided by the U.S. Supreme Court.
Warren, a council member at the time, rebutted the accusations of racism and said she advocated for stronger border protections because people entering the country illegally were taking low-skilled jobs from impoverished Black communities.
Digna Orozco sets up a roadside sign for her Fontana food stand.
(Irfan Khan / Los Angeles Times)
Still, street vendors tend to think the mayor’s crusade against their vocation is rooted in animosity toward Latinos and immigrant culture.
“She doesn’t know us,” said Digna Orozco, who sells pambazos and tacos de canasta on a dirt patch near semi-trailer truck lots in Fontana.
Orozco said she turned to street vending after suffering a heart attack triggered by stressful work as a seamstress at high-end wedding boutiques. She didn’t think her heart could handle a return to boutique work, but she had bills to pay, so she turned to vending at the start of the COVID-19 pandemic.
“She doesn’t know that it’s out of necessity.” Orozco said. “I wanted to tell her, ‘I’m an American citizen from Fontana and my children grew up here.’”
Fontana city officials have repeatedly said the vending ordinances are not meant to target a demographic group. Warren declined The Times’ request for an in-person interview, but offered a statement blaming the tensions on social activists who have twisted the dispute into a “racial or social equity issue to promote their political agenda.”
“The businesses most impacted by their intentional disregard for our ordinance are mostly Latino-owned small businesses,” Warren said in the emailed statement. “They are the ones requesting city action, and they are the ones negatively impacted by this outrageous behavior. This group has attempted to make this a racial issue, and they are the ones who have resorted to personal attacks and threats of violence. The city will continue to enforce the law and stand up for local residents and businesses, regardless of the tactics employed by this group.”
The Times reached out to several Mexican food establishments, whose owners declined to speak on the record. Some cited fear of retaliation from pro-vendor activists, while others worried they might alienate fellow restaurateurs if they expressed support for street vendors. In general, they said they agreed with the need to curb unlicensed vendors; some suggested setting a radius clause where the same goods couldn’t be sold in front of a bricks-and-mortar establishment. Yes, street vendors are common in Mexico, one owner said, but in the U.S., fellow Latinos should shake off old habits and strive to eat better and cleaner.
Amanda Morales, a self-identifying Latina and special projects coordinator for the Fontana Chamber of Commerce, said the street vendor ordinances are not racist in nature but instead an effort to lift and support Latino-owned businesses.
“We have heard story after story of our restaurant owners on the verge of shutting down and laying off their employees that live in the city because they are unable to compete with the price points of street vendors,” Morales said.
Digna Orozco, right, prepares pambazo at her food stand.
(Irfan Khan / Los Angeles Times)
Council members contend they pursued the new ordinances only after the city had exhausted its efforts to work with unlicensed street vendors to bring them into compliance.
Code enforcement officers have distributed fliers explaining the licensing rules in English and Spanish. The city created a program in June to offer financial assistance of up to $2,000 to help cover expenses involved with obtaining permits from the city and county. Three months later, the city shut down the program because no applications were submitted.
Instead, Deputy City Manager Phillip Burum said, illicit vendors have memorized when officers begin their patrols. They pack up their food when officers drive by — and wait until the officers are gone to start selling again.
In October, the City Council approved spending $600,000 to bring in a third-party vendor to help with the crackdown. Pleasanton, Calif.-based 4Leaf Inc. will provide code enforcement services, such as giving warnings to first-time unlicensed vendors, impounding equipment and food from repeat offenders and, if necessary, calling in police for support. Under the six-month contract, six security workers will patrol the city during eight-hour shifts six days a week.
“We’re not objecting to people making money, but you need to do it the right way,” Warren told audience members at the October meeting where the expenditure was approved. “Our public looks upon our council and our region to keep them safe, and if you looked at the conditions they cooked [in], you wouldn’t be eating at these places. There’s no bathrooms. How [are] you going to sit there for eight hours with no bathroom? Where are you going to wash your hands?”
Warren’s admonitions have done nothing to quiet the pro-vendor forces. And as tensions have heightened, Fontana has added more police officers to stand watch during council meetings.
In October, Edin Alex Enamorado, whose strident activism has made him a social media sensation, organized a protest in front of the mayor’s house that police declared an unlawful assembly. Enamorado and a cohort of activists have since been jailed and await trial on allegations they used violent tactics to harass and intimidate perceived enemies of street vendors and certain other causes in multiple cities. The defendants deny the accusations, presenting themselves as crusaders using their 1st Amendment rights to stand up for the oppressed.
Coalition groups such as the Center for Community Action and Environmental Justice have galvanized vendors to share testimony at council meetings about what drew them to the occupation. Several explained in Spanish that the vending ordinances were upending a food service many residents appreciate and see as part of their heritage. Frustration has mounted as city-provided interpreters sometimes struggle to accurately convey what Spanish speakers say within the time frame allotted for public comment.
“When you talk about public health and safety of the community, you say that street vendors are a danger, that street vendors are a nuisance,” Joaquin Castillejos told the mayor at an October meeting. “You know what to me is a danger and a nuisance? It’s PM2.5 contamination from trucks going into our lungs every single day in the streets, and you wanna put warehouses next to a school—”
Before he could finish, his allotted time elapsed.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
Business
Monterey Park takes landmark vote on banning data centers
Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.
If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.
Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.
As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.
Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.
“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”
The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.
The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.
While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.
The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.
In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.
The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.
“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”
The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”
While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.
“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”
The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.
As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.
Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.
Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”
While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.
“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”
Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.
Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.
“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”
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