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Local news interview with Fernando Palazuelo, who bought the plant last fall.

Uniquely Detroit: The man with the plan for the Packard Plant

http://www.clickondetroit.com/news/live-in-the-d/uniquely-detroit-the-man-with-the-plan-for-the-packard-plant/26634042

I think this is the third or fourth interview that has been linked. He says he has a plan but has anything actually started or on paper. I think there was increased security for the site mentioned as being done but any sign of controlled demolition, cleaning or drawings of what he wants to do?

It all reminds me of a hotel here in town. That has been going on for at least 20 years thru two or three developers with grand plans but the nitty gritty of cleanup, asbestos, demolition vs historical preservation and ultimately the cost has stymied them all. To the point I think the city has given this last bunch the option of show progress within x amount of months or show up the following month with a demolition contractor or the city will hire one for him using the money the developer has in hock for other projects.

Of course, I guess that last threat is not an option for Detroit. They have no money to hire anyone and I'd guess whatever he has put up wouldn't even cut the weeds on the property.

He says he has a plan but has anything actually started or on paper.


Hults had all kinds of "plans", had some fanciful drawings, retained Albert Kahn Associates, but didn't pay for the plant. The skinny is Hults has bought some other properties around the city, including the former Hudson/Cadillac body plant on Conner, hasn't paid a nickle in taxes and has crews stripping the buildings and selling the scrap.

Investor who wanted Packard Plant scraps buildings, late on taxes


http://motorcitymuckraker.com/blog/2014/04/22/investor-who-wanted-packard-plant-scraps-buildings-wont-pay-taxes/

Palazuelo apparently has a track record of rehabing other abandoned properties, so I'm prepared to give him a reasonable time to show progress. Apparently there is something approching security at the plant now, which was a requirement by the city.

Of course, I guess that last threat is not an option for Detroit. They have no money to hire anyone and I'd guess whatever he has put up wouldn't even cut the weeds on the property.


He's a foreign national, so probably doesn't have much in the way of assets in the US that the city could put a lien on to cover demo costs. He paid $400K. The city put it up for auction to try and recover some $2M in back taxes. To demo the plant and clean up the site would probably cost ten times that.

Fernando Palazuelo says signs will go up next week at Packard Plant

The Peru-based developer said his company, Arte Express, will begin Monday to erect new signs at the 40-acre Packard site on Detroit's east side and continue preparations for restoring the administration building that was once corporate headquarters to Packard Motor Car.

Palazuelo gave September as his target date for moving his company's Detroit office into the Packard company's old headquarters. He still intends to make his personal apartment in the plant.

His redevelopment efforts were delayed by a title dispute with the plant's former owner, Dominic Cristini.

more at link

http://www.freep.com/article/20140625/BUSINESS06/306250176/Fernando-Palazuelo-Packard-Plant-update

Palzauelo has had a sign put up at the plant, which claims that Kahn Associates is on board with the project.

As of Monday, over $92K in taxes still have not been paid. In a recent interview Palzauel said he owes some $40M on his projects in Peru.

http://www.mlive.com/business/detroit/index.ssf/2014/07/taxes_still_delinquent_on_detr.html

The whole lineage of who owns what is a mess for the Packard plant, what Palzauelo owns is not the whole kit and kaboodle, but a portion. PMCC acquired land one piece at a time as they needed for expansion, and those parcels are still on the books as individual plots. Dominic Christini still claims to hold good, paid up parcels on his books.
It's a mess, on paper, and in real life.

He should not have to pay any taxes, maybe a small amount to cover potential fire and rescue - until it becomes a money generating enterprise.

Right? I mean small towns and some big towns give tax abatements to get neighborhoods going and regoing.

give tax abatements to get neighborhoods going and regoing.

Usually, to receive a tax abatement, the business owner has to present some sort of viable business plan to the city, and some claim to how many "jobs" will be created. Palzauelo does not appear to have done anything more than make vague claims.

He made one tactical error. Because he closed the purchase of the plant in late December, he became liable for the taxes for all of 2013. If he had procrastinated until January, the tax bill would be far less.

I liked the idea he proposed of having a Packard museum in the Admin building, because, like the ACD in Auburn, it always adds to the atmosphere when a museum is located in the space that the events depicted occured.

He doesn't seem to have his act together though, and seeing how leveraged he is isn't encouraging either.