The Merritt Bakery has been a Oakland fixture for over 35 years, and had sales of $5 million in 2001, but lately it's fallen on hard times. The bakery owes  $823,840 to four lenders, including the city of Oakland, plus another $46,000 in debt financing.

Oakland is stuck between a cop and an arts space.  Last night the City Council held a second special meeting to address the city's unprecedented $42.6 million budget gap for the 2010-2011 fiscal year.

The fiscal elephant in the room -- police compensation and possible layoffs -- was discussed at length, but council took no specific action on this contentious issue last night. However, they did agree to delay cuts to the Oakland Museum, since the museum is negotiating a public-private partnership that could brighten its financial future...