Junk Town is an eyesore, it deserves to be razed to the ground. I think I'll be doing a spot of razing late today.

A spark of fire or two in hard mode should do the job.
Make a idiot construct something banned in sector seven,and make it a gargantuan sprawling domed factory+farm and warehouses. Sector 7 is scum fascism imperialism scum! Use chainsaws to remove them!
Sorry, but Junk Town is here to stay. Canonically, at least. It's intended to be a contrast to the rest of the city with informal and haphazard construction vs. uniform construction.
But now that the map is released, you are free to do that yourself.
Also, fascist isn't a prejorative term in Brotopia. Some of the Glorious Leader's policies are actually pretty fascist themselves.