Elemental Forums
I had to raze a city because it had -12 prestige after I conqured it (I have no clue why it was that negative). So I razed the city and I rebuilt a city on top of the ruins. Now I cannot build on any of the ruined squares.
Razing a city "salts the earth". AFAIK you should be able to clear the tiles using the Blistering Sands spell, though.
I'm pretty sure I can build a monument to Zeus on top of salted earth. 
Yes this is not a good option.. You can alternatively destry each building one by one before razing a city such that you only salt the earth at the city center, not the surrounding tiles.
Personally I feel there should be a technology feature to raze a city yet not salt the earth to avoid having to do all that by hand demolition. Or otherwise a feature to eliminate all structures except the city center.
Thus a spell to revitalize the land is needed, as turning it into a desert to make habiable is illogical.
No need for a spell when a by hand action does the job.. The system is still wonky. None of the land alteration spells are really 'useful'..
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