Last June, the Tracy City Council made an unsecured loan to substantiate or secure an agreement with the West Valley Mall and Macy’s. Macy’s is now moving into the mall, as per the agreement, and promises to open this month.
This agreement was made with the promise of increased sales tax, both from Macy’s and from the trade generated by increased sales made by adjoining businesses. Now the council is asking for an additional sales tax. Has the council lost faith in its bet of $2.75 million dollars that the city can stimulate business enough to get a return on that money and have additional sales tax beside? It is only a little more than three months since they took that action.
Measure E will not be effective until April, whereas the sales tax funds from Macy’s will start this month or next. Maybe we don’t need Measure E. I made a recent purchase out at the mall, and the sales tax was 8.75 cents per dollar — seems like enough, doesn’t it?
Since we will have to wait until next summer before Measure E produces any money, maybe we should wait and see how the new gamble of our millions of dollars pays off with Macy’s. It seems the council would have considered that before putting this measure on the ballot.