Gary Free State was a City-State formed in Gary (City), Indiana and its surrounding metropolitan area. The downtown area seceded and encased itself in a concrete dome, and is now an independent city-state known as Gary (City-State).
History
Gary as a waiting-list for Chicago citizenship
The Walling of Chicago drew criticism for limiting its integration plan only to the city proper, with no plan of integration for its economically dependent satellite cities, nor offering of admission to their residents. As a consolation the Government of Chicago extended an admission wait-list lottery to the residents of Gary and other satellite cities, which led to the Gary's population exploding with immigrants from the Midwest region who held out hope for citizenship in one of the most attractive Arcoplexes in the country.
Behind the scenes, this immigrant influx was partly engineered in order to defuse the racial aspect of the unfair outcome of the walling of Chicago. When before residents of Gary could claim they were excluded due to their race, suddenly the city looked like any other in the US in terms of racial demographics, and the Government of Chicago had newfound plausible deniability for its scornful exclusion.
N.B.: I'm specifically trying to neutralize any racial tendencies in the city, because Gary gets weird as hell and it has nothing to do with race.
Formation of Gary Free State
As the population of Gary exploded, predictable problems arose from the lack of employment and resources. Crime became rampant, and the few Carbon Macrofilters allocated to the city were not enough to make it livable without long-term health effects. Several disorganized assaults were launched on the Fortified Perimiter of Chicago in a desperate attempt to gain entry.
The Government of Chicago provided the mayor-council government of Gary with a sizeable paramilitary police force, and logistics & construction assistance. This allowed them to establish a semblance of order and develop the infrastructure to keep people content enough to not throw their lives away in desperation.
With a new order established by force, the Gary Free State was declared, with the Gary Free State Regime as its governing regime.