Palazuelo restoring Packard bridge with historic photo

A much photographed section of Detroit's Packard Plant took on a new but familiar image on Thursday — that of its grand self in the 1930s.

Workers spent the day draping graphic coverings on both sides of the plant's iconic pedestrian bridge that spans East Grand Boulevard.

Imprinted on the mesh covers is a full-scale photo of the brick bridge as it appeared during Packard's 20th Century heyday, long before graffiti appeared, windows disappeared and the old clocks stopped working.

Packard Plant owner Fernando Palazuelo stood in the middle of the boulevard and wore a look of satisfaction as workmen maneuvered one of the coverings into place.

He vowed that by some time next year, the now shrouded bridge will be physically restored and look exactly like it does in the old photograph. The coverings will then be removed.

"This is a symbol for the city and the country," said the Spanish-born Palazuelo, who also wore a U.S. flag pin on his green sports jacket. "To have the opportunity to see the bridge like it was one century ago — this is incredible."

Palazuelo also described Thursday how his interest in owning historic Detroit buildings extends beyond the Packard Plant's crumbling walls.

He said he is intrigued by the Book Tower and Book Building, which sits vacant in Detroit's fast-rebounding downtown. And he intends to join this summer's blockbuster auction on June 22 of the Fisher Building and Albert Kahn Building in New Center.

Palazuelo had been negotiating to buy the Fisher and Kahn from their previous owner, the Farbman Group, although no deal was reached.

He said he plans to participate in the online auction but won't be shooting for victory at any price. Unlike his Packard Plant, both buildings are in use and in good shape. "I don't want to compete with the deep-pocket guys," Palazuelo said.

A year and a half after winning the derelict auto plant at auction, Palazuelo is making gradual progress toward his grand vision of redeveloping the Packard site as a commercial development. But his progress has been slower than he predicted when he first bought the property.

The project's first phase, which he said will begin in earnest July 1, involves rehabbing the pedestrian bridge and the former Packard administration building on the bridge's north side. Palazuelo's company, Arte Express, will be financing all of the work.

"It's a big risk, but I have a commitment to the Packard Plant," he said.

Between now and then, Palazuelo's goal is to reduce the phase's estimated price tag to $12 million from $20 million . The restored bridge and the four-story administrative building could then be ready for tenants by first half of 2017, or earlier, according to Palazuelo and Kari Smith, the plant's director of development

Palazuelo said that counting staff salaries, the site's new 24-hour security and other expenses, he has spent about $2 million so far on his Packard Plant dream. And that sum doesn't include the $405,000 he paid for the 40-some acres in late 2013 in the Wayne County Treasurer's foreclosure auction.

He declined to say whether that $2 million included any money toward settling title claims last year with the plant's previous owner, Dominic Cristini, who reportedly offered to extinguish all of his ownership interests for a payment of $3.5 million. Resolving that title issue delayed Palazuelo by about half a year, he said.

Palazuelo's project could be close to securing several key tenants, according to Smith.

Detroit Training Center, a vocational training group, is looking to fill the third floor of the renovated administration building, while two prospects that she can't yet name may go into the building's first and second floors.

Arte Express intends to move its offices into the fourth floor.

Two additional and larger tenants could then go into the south end of the plant, where future renovations would be determined by tenants' needs, according to Smith.

Palazuelo, who is based in Lima, Peru, previously vowed to carve an apartment for himself in the Packard Plant as it undergoes renovations. While he has missed a couple self-imposed deadlines for that apartment, he isn't backing off from the goal.

"First of all, we have to finish the building," he said Thursday. "My personal apartment will be there."

Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter @JCReindl.