Urban renewal is extremely controversial, and typically involves the destruction of businesses, the relocation of people, and the use of eminent domain (known as Compulsory Purchase in the UK) as a legal instrument to reclaim private property for city-initiated development projects. In the 1960s James Baldwin famously dubbed Urban Renewal "Negro Removal".
Urban renewal's effect on actual revitalization is a subject of intense debate. It is seen by proponents as an economic engine, and by opponents as a regressive mechanism for enriching the wealthy at the expense of taxpayers and the poor. It carries a high cost to existing communities, and in many cases resulted in the destruction of vibrant—if run-down —neighborhoods.
Urban renewal in its original form has been called a failure by many urban planners and civic leaders, and has since been reformulated with a focus on redevelopment of existing communities. However, many cities link the revitalization of the central business district and gentrification of residential neighborhoods to earlier urban renewal programs. Over time, urban renewal evolved into a policy based less on destruction and more on renovation and investment, and today is an integral part of many local governments, often combined with small and big business incentives. But even in this adapted form, Urban Renewal projects are still widely accused of abuse and corruption.
http://en.wikipedia.org/wiki/Urban_renewal
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