EUKN - European Urban Knowledge Network - Tax-exempt zones

Tax-exempt zones - Roubaix, France

Introduction

In Roubaix the local authorities try to increase the economic attraction of their old industrial town by applying tax exemptions to certain economic activities.

Problem

How to inject new life into the centre of an industrial town?

Description

Roubaix is one of the towns in the Lille conurbation. It was a world leader in the textile industry in the nineteenth century, but the crisis in the nineteen-sixties forced many factories to close their doors. The unemployment figure for Roubaix was 30% in 1997. European Urban2 funds and the introduction of a "tax-exempt zone" for businesses have helped to inject new life into the old town centre.

Approach

In contrast to many towns in France, Roubaix mainly has to deal with deprived districts in the town centre. The objective of the project is to revitalize the town centre, making it attractive to consumers, businesses and investors alike.

In 1997, the French government designated the Alma, Ste Elisabeth and Grand Place districts as one of the ´Zones Franches Urbaines´(tax-exempt zones). Businesses setting up operations in these zones are exempt from taxation and social security contributions for 5 years. This period was extended by 5 years in 2001.

A British-style Town Centre Management association has been formed, with the task of supervising the development of the town centre. All interested parties come together in this association: local authorities, Chamber of Commerce, trade unions and businesses.

Results

The town centre has been renovated and made attractive for smaller businesses by improvements to public transport, cultural facilities and access to public amenities.
The construction of two shopping centres. One for outlet stores (Centre de boutiques de fabriquants) and one general shopping mall (l'Espace Grand Rue).
There were 1199 businesses in the ZFU districts in 1997 and this number had risen to 2096 by the end of the first period in 2001, an increase of almost 100%.
The project shows that economic revitalization of a town goes hand-in-hand with physical restoration of the relevant districts. An integrated approach offers the best result.
Roubaix has achieved good results due to a formal public-private alliance.

Contact info

City of Roubaix - City Renewal, Education and Culture
Michel David (Director General City Renewal, Education and Culture), tel. +33 320664714

Project start date

11/02/2004

Links

Lille Metropole Chamber of Commerce

Document type

case

Themes

Urban Policy > Economy knowledge & employment > Urban economy

Keywords

Business support