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Should Packard Plant be Sold for $1 M to a Developer Without Financing For Redevelopment?

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A Developer's last ditch effort to buy the Packard Plant, the crumbling 35-acre complex that once built luxury cars, isn't going so well. The Hults, a dude from Evanston, Ill, still wants to make the deal happen; he has a closing tentatively scheduled for next week to pay $1M for it. But there are three mega deal-killers that have us thinking this thing is going straight to the Wayne County's auction of tax-foreclosed properties, which begins opening bids on September 5. For one, The Hults "has yet to secure project financing," according to the Freep. That's major! And that's not the only problem.

In addition, The Hults has not created development partnerships or even met with Detroit's development chief, George Jackson. Lastly, he's never completed a project of this magnitude, which is going to be yet another huge problem for already big problem number one: getting the loan.

So yeah. Let's just all assume the Packard is pretty much IN the foreclosure action right now. When Round one bidding starts, the minimum bid for it will be $966,000. That price is calculated by tabulating the unpaid taxes with interest. According to Freep, that bill has been mounting for seven years.

If no one buys it up in round one, the property will show up in the round two auction, where minimum bids are $500. Since Wayne County has the complex cut up into 42 parcels being sold in a bundle, the minimum bid would be a mere $21,000.

The lingering question is whether Wayne County would be willing to just go ahead and let The Hults have it for $1M, afraid that nixing the deal would net them only $21 K. It might actually be a tough call. While his development plan sounds impossible to come together, Wayne County might have trouble saying no to $1M cash.
· Packard plant could go on auction block, sell for $21,000, if latest development deal falls through [Freep]

Packard Automobile Plant Detroit

E Grand Blvd & Concord St. , Detroit, MI