In California, a State and Local War Over Revenue and
Responsibilities   Its name is a pun. Dive Bar may sit along
Sacramento's struggling K Street pedestrian mall, but far from
sheltering scruffy boozers, the bar caters to the trendy young.
Especially those who like to socialize in sight of a large tank
of water containing a young woman swimming around as a mermaid. 
Early this year, around the time it opened, Dive Bar came in for
a spate of publicity glaringly at odds with what its owners had
hoped for. Instead of its more obvious attributes, the feature
of the bar garnering the most attention was the fact that the
development in which it was housed had been subsidized by
Sacramento's redevelopment agency.  Because of the way
redevelopment agencies work in California, the city's subsidy
meant that the state, indirectly, was also bankrolling the
project. This did not look good at the very moment when
lawmakers and Democratic Governor Jerry Brown were desperately
trying to close a $25 billion state deficit b