10 Year Anniversary for Renaissance Zones

[GRDadof3 3458]

Renaissance revisited: what Grand Rapids has accomplished in 10 years

Sunday, April 23, 2006

By Chris Knape

The Grand Rapids Press

The idea was pretty simple on paper: If you want to spur development, do away with state and local taxes, and the red tape of tax abatements.

But in 1996 the idea of Renaissance Zones was practically revolutionary in Michigan.

http://www.mlive.com/business/grpress/inde...5310.xml&coll=6

This is one of those cases where I don't think that providing "Renaissance Zones" across the board to every business in Michigan would have yielded the same results. I think much of the redevelopment of blighted properties would NOT have happened. Agree? Disagree?

[TheCityGuy 0]

Yes. Renaissance Zones have without a doubt attracted development, especially when combined with brownfield redevelopment incentives in urban areas.

However, there will always be the argument that over the long-term, tax incentives, tax abatements, whatever the hell you want to call them, are simply a bargaining chip that communities use against one another. When the incentive to stay is no longer there...the companies will look for the next deal.

That being said, I'd rather have a business downtown paying no taxes, than no business downtown paying no taxes.

[Rizzo 0]

I wonder if the suburbs are screaming fowl on Grand Rapids providing RenZones. I think it's a great tool in certain situations where it can almost level the playing field. One could make the assertion that the suburbs aren't playing fair with cheap land, and no income taxes. I hear its pretty nice out there.

[joeDowntown 1196]

Most definitely. You wouldn't have seen a lot of these developments without incentives. And very few have flopped (Keeler Brass is the only one I know of) which shows the strength of people wanting to be downtown.

Joe