Demolition began Thursday morning on the site of the former Austin's H.P. Grille, 3249 Biddle Ave.

Dr. Anne Abrahamson of Great Lakes Physical Medicine & Rehabilitation in Taylor is planning to build a two-story building on the property, located on the northeast corner of Biddle and Eureka.

The plan calls for the first floor to be her medical office, along with a small, separate office to be leased to a tenant, such as a physical therapist.

The second story will be converted into five apartments, with one of them being fully handicap-accessible. There will be an elevator for all tenants to use.

The original plan announced in June was to build a second floor onto the existing building, but that quickly changed once developers realized the poor condition of the structure, including a shoddy foundation, roof and footings.

"It got to the point where it was just easier to knock it down and start from scratch," said Nick Abrahamson, the doctor's husband.

Demolition is expected to be wrapped up by early next week, he said, with the plan to have the new building up and operational by July. That will ensure a smooth transition as the lease on Abrahamson's current building in Taylor expires in July.

The apartments will be available for rent and will have balconies overlooking Biddle, along with balconies on the side. The handicap-accessible apartment will not have a balcony.

“It's going to be a beautiful addition to downtown Wyandotte,” said Jeff Klatt, the project's architect. "It's going to be a nice way to hallmark that entryway into the city."

On Monday, city council members desiginated the project as a Commercial Rehabilitation District, which will give Abrahamson, who is investing up to $1.4 million in the project, a tax break on the new building for 10 years.

This was the first time a Commercial Rehabilitation District had been declared in Wyandotte, but City Administrator Todd Drysdale said he supports the measure as a way "to encourage and assist with redeveloping the property."

Nick Abrahamson said he and Anne, who live on Grosse Ile, are looking forward to having a presence in Wyandotte.

"We really want to be in Wyandotte," he said. "My wife grew up in Lincoln Park and loves the area. They've got a lot of plans here in putting more medical offices across from the hospital. ... It's going to be a great location."

According to her website, Anne Abrahamson was born in Dearborn and is a lifelong Downriver resident. She received an undergraduate degree from Wayne State University in nutrition and food science and a medical degree from Wayne State University School of Medicine. She completed both her residency and postdoctoral studies at William Beaumont Hospital in Royal Oak.

Austin’s has sat empty on the northeast corner of Biddle and Eureka since the business closed in August 2008. The southeast corner across the street has been equally as dark since Blockbuster Video went out of business in March. However, that building also has new life planned. Henry Ford Wyandotte Hospital is moving its rehabilitation services out of the nearb Chase Bank building and opening a Physical Rehab Services Center on the property.