Partial demolition begins on 'scary' Packard Plant

Detroit — Tara Moxley has lived in the shadow of the Packard Plant her whole life, and for decades she’s watched the blight worsen at the onetime auto manufacturing site.

“It’s an eyesore and it’s scary,” said Moxley, 50. “We have grandkids that play around here and it’s scary to not know if your kids can go outside and be safe. There have been animals, all kinds of wild animals and rodents.”

Moxley and her neighbors expressed hope for the site’s future Thursday as the city began an emergency demolition on part of the complex on the city's east side, with machinery tearing into the structure that's been a longstanding symbol of blight in Detroit.

The property being demolished, at 6199 Concord, is owned by Fernando Palazuelo. It's next to an operating business, event management company Display Group. City officials have said the blighted structure creates an imminent danger to that building, its employees and residents in the neighborhood.

“The abandoned Packard Plant has been a source of national embarrassment for the city of Detroit for many years,” Mayor Mike Duggan said during a press conference shortly before a machine began knocking into the building. “It's been a source of personal pain for people in this community.”

In March, Wayne County Circuit Judge Brian Sullivan ordered Palazuelo, a Peruvian developer, to immediately raze the deteriorating industrial site and foot the cost after he missed a March 24 trial date. Palazuelo also missed the deadline to apply for demolition permits within 21 days, according to the city.

“His non-compliance has allowed the City of Detroit to move forward with demolition plans for the parcel,” officials said.

According to Wayne County Circuit Court on Thursday, Palazuelo has no current attorney named on file.

In July, Detroit City Council approved a nearly $1.7 million contract for the demolition. Detroit Demolition Department selected Michigan contractor Homrich Wrecking Inc. for the work. The project is being paid for with general funds, officials said.

Demolition Director LaJuan Counts said Thursday the razing is expected to be complete in December. At that point, the city would seek reimbursement from Palazuelo.

“He is under court order to pay for this,” Duggan said. “We’ll certainly go after every asset he has in America and if we figure out how to go after his assets in Peru, we’re going do that too. We have a clear legal strategy. You’ve probably gathered by now, this didn't happen by coincidence. He fought every step of the way. He broke every single promise. … I'm pretty confident the courts will continue to back us up.”

The property, part of two 20-acre sites, is still for sale with an asking price of $5 million, said Larry Emmons, senior managing director for real estate firm Newmark’s Southfield office.

“I know Fernando's got some problems with the city, but he assures me he's working through them,” Emmons said. “The city's going to want to be reimbursed for their out-of-pocket to do whatever demo they're doing. So one way or another, it's going to be paid at closing or paid by the new buyer.”

Emmons said there have been a few deals come and go with developers interested in the site’s location, not the buildings.

In 2017, Palazuelo broke ground on a plan to redevelop the Packard Plant into a mixed-use site. The four-phase development plan was expected to be a boon for the city, cost $350 million and take up to 15 years to complete. It’s been at least two years since Palazuelo scrapped those plans and put the site up for sale.

After the Packard Plant ended production in 1956, dozens of smaller businesses worked out of part of the plant until the late ’90s. The city foreclosed on the property and the facility began to be torn apart by scrappers and vandals. After purchasing the complex at a Wayne County auction for $405,000, Palazuelo's company, Arte Express Detroit, began cleaning up the former administration building and offered tours of the site. Not much materialized beyond that.

Mike McConnell, president of AVL Creative and partner of the Display Group, said the company had been hopeful about Palazuelo’s previous plans. Display Group founder Rick Portwood purchased the connected building next door in 2015, moving the company's headquarters from Corktown, McConnell said.

“Over the past eight years, we’ve poured love and investment monies into repurposing this building and the surrounding neighborhood,” he said. “Unfortunately, the adjacent buildings of the Packard Plant have been deteriorating, resulting in falling debris on our roof and the inevitable reclaiming by nature.”

McConnell thanked the city for its commitment to addressing the blight and the safety concerns of the residents in the area.

Valeria Berry, 58, also expressed her gratitude for the demolition work. She’s lived one block away from the property for 18 years.

“It had gotten to where I was no longer able to ride my bike,” she said. “We just didn't feel safe — people dumping things in the building. So I'm very excited that even though it's just a small section at this time, which is the beginning of opportunity for housing … something to help beautify and increase the value of properties in this area for the residents.”

Berry, Moxley and McConnell put their arms around each other as they watched crews begin to tear into the building.

“This is a beautification opportunity and growth…” Berry said. “We want someone to come in the community who’s really going to build something.”

cwilliams@detroitnews.com

Twitter: @CWilliams_DN