Detroit on hook for $1.7M Packard Plant demo after overseas investor misses deadline

July 26, 2022, 5:54 PM


The City of Detroit will pay $1.7 million to demolish the Packard Plant after an overseas developer failed to follow through on his promised renovation of the derelict factory.

The emergency demolition to be paid for with American Rescue Plan funds was approved by City Council Tuesday.

Mayoral spokesman John Roach says the city will attempt to recoup the cost from Packard owner Fernando Palazuelo, though did not immediately say how.

Many of the plant parcels were foreclosed this week after Palazuelo failed to pay taxes on them. According to Crain's, he owes nearly $800,000 in taxes and water bills on more than 30 properties.

The demolition was ordered by a judge after the city last year sued Palazuelo and his development company, Arte Express, to have the plant torn down. A judge in March declared the facility a public nuissance and ordered Palazuelo to cover the cost of demolition. He may be subject to contempt of court sanctions after failing to start that process by a deadline.

Read more:  Detroit Free Press

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