Article (http://www.nytimes.com/2008/02/27/realestate/commercial/27prov.html?pagewanted=print) in today's New York Times discusses how Providence RI has managed to revitalize its deserted downtown area over a 10-12 year period. Some interesting incentives, including setting aside affordable live and work spaces for artists and creating a tax-free zone for artwork produced in within a designated arts district.
Great find. I've always heard good things about redevelopment strategies in Providence. I have a trip planned this July where I'll make a triangle from Maine to NYC, then from NYC to Buffalo and back to the coast, through Albany, NY via I-90. I'm looking forward to spending some time in Providence.