I'd like to tip my hat to Dave Pollard at How to Save the World for encouraging me to write about Michigan's "Renaissance Zones." These "zones" are areas in which former industrial/military use, long-term poverty, or other factors would normally tend to dissuade reuse of land.
In 1996, then Governor John Engler signed into law the Renaissance Zone Act, which allowed cities and counties to apply for a special designation as either a urban, rural or ex-military zone. More types of zones were added in subsequent rounds: agricultural, alternative energy, and pharmaceutical.
What special benefits does "Renaissance Zone" status confer on a business or a resident within? Plenty. All businesses (with the exception of casinos) and residents are exempt from local and state taxes for seven years, and then taxes are phased in at a percentage after, only reaching a full one hundred percent in the fifteenth year.
Where are some of these sites? Many of them are in economically depressed urban areas such as Detroit, Flint, Benton Harbor, Grand Rapids, and Lansing (ironically, the "Seven block Zone" is just a hop, skip, and jump away from the State Capitol Building). Others are former military bases, such as Oscoda Wurtsmuth and K.I. Sawyer. There are even many rural areas which are in the "agricultural zone" category.
According to the number crunchers over at the Michigan Economic Development Council, the program has generated 241 new projects that have created over 6,000 new jobs. The program ended in 2002, and there will be no more new zones created.
The Zones do have their drawbacks, such as a lack of school funding in designated areas and lost tax revenue. It is also arguable that people or companies wouldn't have located there anyway. In some cases, there are also other strange factors that enter into the equation, like the situation that the Seven Block Neighborhood finds itself in now (and which I may try to blog about tomorrow).
For further reading see:
The official Michigan Economic Development Corporation Renaissance Zone Website
Location and types of Zones
Michigan Department of Agriculture Website
10:55:10 PM 
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