Vacant land becoming asset as development returns to Detroit
DETROIT — When Fiat Chrysler began considering where to build its next assembly plant, the automaker didn’t have to look far to find land.
A short walk from its Jefferson North plant on Detroit’s east side is 200 acres the company is eyeing as part of a $1.6 billion investment to convert its Mack Avenue Engine Complex into a new facility. Decades of residential flight, disinvestment and abandonment have left the Motor City with something many others just don’t have: stretches of available real estate. Unlike many big cities where space is tight and most new buildings must be vertical, Detroit’s sprawling empty spaces appeal to some developers.
Detroit is now working to secure the land needed for Fiat Chrysler. Some is home to an old power plant. A tree-planting operation is on another part. A large chunk is privately owned and leased to the automaker as a lot for new vehicles.
Mayor Mike Duggan said in late February that Detroit had 60 days to pull those acres together or the deal with Fiat Chrysler could sputter. Much of the land has been secured, with negotiations continuing with businessman Manuel “Matty” Moroun’s family for one section, according to city spokesman Tim Carroll. The Detroit City Council is expected to discuss the city’s land acquisition plan as early as Monday.
A new plant is expected to add 3,850 jobs. Fiat Chrysler plans an additional 1,100 new jobs at its adjacent Jefferson North Assembly plant.
The effort is seen as more good news for the city that is still rebound after its 2014 exit from the largest municipal bankruptcy in U.S. history. Bolstered by auto and other manufacturing jobs, Detroit nearly was bursting at its seams by the 1950s when the city’s population rose to about 1.8 million. But white people started to leave the city for the suburbs. The outbound tide swelled following a 1967 race riot. The black middle class followed.
Tens of thousands of aging homes that once held families deteriorated. More than 14,000 vacant structures — mostly houses — have been torn down over the past five years.
About 680,000 people live in the city — 1.2 million fewer than six decades ago. They’re not cramped for space: About 14,800 acres are considered vacant.
