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Posted on Tue, May 28, 2013 : 2:50 p.m.

Start to demolition of Georgetown Mall delights neighbors

By Chelsea Hoedl

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Related: Video: Watch the demolition of Ann Arbor's former Georgetown Mall

The long-awaited demolition of Georgetown Mall began Tuesday. The vacant and blighted site on Packard Road will be redeveloped in to Packard Square, which is set to include 230 apartments and 23,790 square feet of retail space. The redevelopment is estimated to cost more than $46 million.

“Certainly I’m happy to see that they are finally going to demolish the old buildings, but I’m not so sure that this is any indication that new development will begin,” said Jack Eaton, neighborhood activist and 4th Ward candidate for Ann Arbor City Council.

Eaton said Harbor Georgetown LLC developer Craig Schubiner has been making promises about the project, at 2502 Packard Road, for the last five years with little follow-through. According to Eaton, Schubiner also has a separate Michigan development that never finished.

“Demolition is happening primarily because the government is coming through with grants, but that doesn’t have anything to do with the developer,” Eaton said.

Attempts to reach Schubiner for comments were unsuccessful.

Schubiner originally planned to begin demolition in August 2011 after winning the approval of City Council in May 2011. Planning for the development began prior to the closing of Kroger in 2009.

A series of financial setbacks have slowed project progress. Redevelopment was stalled because the property faced tax foreclosure after the bankruptcy of a lender and last year Schubiner was unable to demonstrate project financing to the satisfaction of the Michigan Department of Environmental Quality. Schubiner was given until April to prove he had proper funding. He was able to meet this deadline and in January 2013, Schubiner was optimistic the mall would be demolished by February.

Nathan Voght told AnnArbor.com in a previous interview that the only thing standing in the way of demolition as of March 20 was the need for grant-funded and non-grant-funded work to concurrently move forward.

The demolition and environmental cleanup partially will be paid for by a $1 million state grant. The remaining $250,000 of non-grant work covers demolition of about half the site, demolition of a dry-cleaning building, and remediation of the worst on-site contaminated soil.

City Council Member Margie Teall, D-4th Ward, said she hopes demolition is an indicator financing to entirely complete the project is in line, but because of how everything has gone with this developer she said she can’t predict what is going to happen.

“It’s been very frustrating to have to wait as long as we’ve had to,” Teall said. “My hope two years ago was that they would just get the buildings down because they are so unsafe. At least we would have a clean site. It looks like we’re finally getting that.”

Even if redevelopment — which is estimated to annually bring an additional $500,000 in tax revenue — is not completed as planned, Eaton said the neighborhood still will be happy to see the buildings knocked down.

“I think that generally the people in the neighborhood are delighted the buildings will finally come down,” Eaton said. “Having an empty field is preferable to having blight in the neighborhood. We’ve been waiting a long time for this and there’s some regret there especially if what we gain from all this is an empty lot.”

Comments

Richard Dokas

Wed, May 29, 2013 : 7:36 p.m.

This article states that it "is estimated to annually bring an additional $500,000 in tax revenue" I noticed there is no mention of the tax abatement which is a bit deceiving. Let me quote from an earlier A2.com article: "We are going to be giving them an abatement on their taxes for a period of time," Higgins said. " http://www.annarbor.com/news/owner-of-ann-arbors-georgetown-mall-site-seeking-tax-breaks-on-30-million-project/

jns131

Wed, May 29, 2013 : 2:37 p.m.

A lot of jobs where lost or displaced because of this fiasco. Plus a lot of neighbors lost a dear to their heart grocery store and drugstore. I hate to say it, this is going to be another blighted eyesore for the neighbors not expecting something bigger then life. Good luck with your new white elephant.

Alan Goldsmith

Wed, May 29, 2013 : 12:54 p.m.

"City Council Member Margie Teall, D-4th Ward, said she hopes demolition is an indicator financing to entirely complete the project is in line, but because of how everything has gone with this developer she said she can't predict what is going to happen." The same Margie Teall who has taken credit for this removal in her last two campaigns for City Council when it never happened. Typical politician.

Halter

Wed, May 29, 2013 : 1:17 a.m.

So so nice to see this finally being torn down after sitting around rotting for years now -- even if nothing is immediately developed there, it will be a clean field with site-lines that prevent any mischief and/or danger in those ruins. Thanks A2!

LBH

Tue, May 28, 2013 : 8:09 p.m.

After the county sat on the paperwork for this *FOREVER*, it finally begins. Sure hope they actually abated that asbestos before they started ripping and tearing.

timjbd

Tue, May 28, 2013 : 8:05 p.m.

"Redevelopment was stalled because the property faced tax foreclosure after the bankruptcy of a lender and last year Schubiner was unable to demonstrate project financing to the satisfaction of the Michigan Department of Environmental Quality. Schubiner was given until April to prove he had proper funding. He was able to meet this deadline..." Any idea how long Shubiner will now be given to make a go of it before foreclosure sets in? I'd like to see these plans come to fruition whether it's him doing it or someone else a little less ambitious..

Jack Eaton

Tue, May 28, 2013 : 7:30 p.m.

For sake of clarity, let me say that while I am a neighborhood activist, this is not my neighborhood and I am not directly involved in the neighborhood group in that area. I have taken an interest in the Georgetown Mall problem since I actively supported Hatim Elhady's 2009 Council campaign and in my campaigns for Council. I admire the Georgetown neighbors for their patience and for their involvement in addressing the problems arising from this failed project.

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