Does Extending debt take tax increment away from the State of California?
Yes, in a manner of speaking this is true, but the community needs to understand the whole picture of how redevelopment works. For example, because of the Capitola Redevelopment Agency, the State has backfilled school costs to the tune of about $10,000,000 over the 21 year life of the project. This is the money that went into tax increment and not to the State. In return, this year the City will pay the State of California over $32,000,000 in sales tax. If one assumes half of that amount, or $16,000,000, is related to the Macerich Mall and auto dealers, and further that half of that amount, or $8,000,000, is related to the expansion of other retail uses by redevelopment project, then you can conclude the State has made and is making an excellent investment, because it was Redevelopment that delivered those sales tax generating projects. Furthermore, it could be inferred that since the State has not changed the law over this period of time it is aware of the advantages of redevelopment
