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Packard Plant demolition to wrap up in Detroit soon: What’s next

City seeks new developer for iconic site

Demolition of Detroit’s iconic Packard Plant

DETROIT – The demolition of Detroit’s iconic, and longtime deteriorating, Packard Plant is nearly finished, and city leaders are envisioning a brighter future for the space.

What’s remaining of the Packard Automotive Plant located off I-94 on Detroit’s east side is expected to be toppled by the end of 2024, the city said Thursday in a press release. A specific completion date was not provided.

The massive structure at the 38-acre site has been demolished in multiple phases over the last few years, with the latest phase beginning in March. The demolition project has been underway since 2017, but the first real phase of demolition began in 2022 after the long-abandoned structure had been ordered to be destroyed. The first portion to be demolished was reportedly threatening the safety of nearby residents and businesses.

The latest demolition phase that began on March 4, 2024, was expected to take at least five months to complete, officials said. Following that demolition, three additional parcels were slated to be destroyed.

Exterior of the Packard Plant on Detroit's east side, Thursday, June 30, 2022. The factory built in the early 1900s turned out high-end cars into the 1950s. It was considered one of the city's automotive jewels, but now is among the nation's most notorious examples of urban blight. Parts of the 3.5 million-square-foot, 40-acre Packard plant complex will be demolished by the year's end. (AP Photo/Carlos Osorio) (Copyright 2022 The Associated Press. All rights reserved.)

Part of the Albert Kahn-designed facility was being saved, however, to keep the legacy of the historic plant alive -- despite it serving solely as an eyesore since production stopped in 1956. Once all parts of the plant are removed, city officials want to develop the land into something useful.

“For 68 years, the ruins of this building have been a weight around the neck of Detroit’s recovery,” Detroit Mayor Mike Duggan said in March.

“We are gonna convert this from an abandoned building to a vibrant employment center over the next two years.”

Starting Thursday, May 30, the city will be accepting requests for proposal, known as RFPs, for those interested in developing the space. Detroit officials say their priority is to “redevelop the site into a high-quality industrial/manufacturing facility, ideally in the automotive sector.”

The Packard Plant is just down the street from General Motors’ Factory ZERO, an electric vehicle assembly plant.

Exterior of the Packard Plant is seen across from the Trinity Cemetery on Detroit's east side, Thursday, June 30, 2022. The factory built in the early 1900s turned out high-end cars into the 1950s. It was considered one of the city's automotive jewels, but now is among the nation's most notorious examples of urban blight. Parts of the 3.5 million-square-foot, 40-acre Packard plant complex will be demolished by the year's end. (AP Photo/Carlos Osorio) (Copyright 2022 The Associated Press. All rights reserved.)

“Given the Packard Plant’s significance to Detroit’s automotive history, the City is seeking proposals that will incorporate a portion of the existing building that remains at E. Grand Boulevard,” a press release read Thursday. “Developers are expected to present site plans that honor the legacy of this important site and illustrate how these portions of the building will be incorporated into the overall site plan.”

Interested firms will have until July 12 to submit their proposals for redevelopment at the Packard site. It appears the city is only looking to make a deal with one developer.

RFPs will be available here on the website for the Detroit Economic Growth Corporation, which is partnering with the city on this project.

Plans to redevelop the space were established in 2013 when the property was purchased for $405,000 by Fernando Palazuelo. He told the city he planned to restore and reopen the site as a mixed-use commercial, residential and cultural development.

That redevelopment project, which Palazuelo initially estimated would cost $350 million, never happened.

In April 2022, a judge ordered Palazuelo to demolish all buildings and structures on the property and to remove all rubbish and debris from the site. Palazuelo failed to appear for court hearings and meet deadlines regarding the demolition, so the city took on the demolition project.

The demolition, which the city estimated would cost $1.2 million, is funded by dollars received from the federal government through the President Joe Biden-backed American Rescue Plan Act of 2021.

“Because of Joe Biden and the American Rescue Plan, Detroit has resources that we’ve never had,” Duggan said.

Photos of the layout of the Packard Plant property are below.

A layout and legend of the Packard Automotive Plant in Detroit, courtesy of the city of Detroit in May 2024. (WDIV)
A layout and legend of the Packard Automotive Plant in Detroit, courtesy of the city of Detroit in May 2024. (WDIV)


About the Author
Cassidy Johncox headshot

Cassidy Johncox is a senior digital news editor covering stories across the spectrum, with a special focus on politics and community issues.

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