Archive for the ‘Business’ Category

Dearborn Developer says ‘Dream is Over’

Wednesday, March 10th, 2010

Resident Hakim Fakhoury says 'dream' of developing downtown Dearborn is over.

If you’ve driven along Michigan Avenue this week you probably have seen signs hanging in the windows of some of the properties owned by developer Hakim Fakhoury with the following words: “The Dream is Over. For Sale.” Many of you have even written here asking what the signs meant.

Well, we sent a note straight to the source, Mr. Fakhoury, asking if he would pen a note explaining the meaning of the signs. He provided us this article, which begins below.

My name is Hakim Fakhoury, and I had a dream…

I had a dream… that Dearborn could become one of the most vibrant downtowns in Michigan.

I had a dream… that the city I have lived in nearly my whole life would be the place where I could invest the fruits of all my hard work.

I had a dream… that Dearborn’s leader would open their arms to a developer that is home-grown and seeks to make a better future for our city for generations to come.

I had a dream… that our mayor and city council could put aside personal and political differences, that petty political infighting would not cause the development of our city to come to a standstill. The inability of our leaders to have a vision has caused us to lag behind other cities, and make us unable to fully transition into the 21st century.

I had a dream… that our leaders would be smart to know what they don’t know, that they would hire professionals to develop master plans, that they would end corruption, the “old boys” network, an breathe new life into our community.

I had a dream… that we could redevelop our downtown into something that would appeal to everyone, attracting fresh young minds to make our city vibrant, livable, fun, and modern.

I had a dream… that I could buy buildings and then, in agreement with city officials, transform our city.

I had a dream… that the mayor and city council members would not lie, that they would be honest, that they would not manipulate each other, or play petty games, or include me in their internal feuds, and just be mature, with the city’s interests, and only the city’s interests, at the core of their decision-making.

I had a dream… but now the DREAM IS OVER for me… My hope is that another developer with come along, buy all my properties, pick up on my hard work, and move to develop the district…

Developer Burton-Katzman, Dearborn at Odds Again

Monday, March 8th, 2010

Developer Burton-Katzman and the City of Dearborn are again at odds. This time over two crumbling concrete foundations slated for demolition, according to an article in the Dearborn Times-Herald

Burton-Katzman is already facing a court order to break ground on 12 condos and two midrise buildings between the city’s two underutilized parking decks. Wayne County Circuit Judge Michael Sapala said the company had to break ground no later than April 3.

Sapala’s order stems from Dearborn’s ongoing lawsuit against Burton-Katzman and several of the company’s executives for failing to complete its agreed-upon project on a city-owned parcel.

Now the City of Dearborn and a subsidiary of Burton-Katzman are in dispute over concrete foundation slabs.

The lawyers representing Burton-Katzman now tell the Times-Herald that if the city moves forward with demolition of the concrete slabs it would be “purposely interfering” with its ability to begin construction on April 3 as part of its court order.

The concrete slabs are to be the foundation for two six-unit condo buildings for the still unfinished West Village Commons project. The concrete pads, according to the Times-Herald, were poured more than two years ago.

Dearborn officials say the concrete foundations have now become a public safety hazard and need to be removed. If Burton-Katzman wants to stop the demolition, they need to provide an engineering report to the city to prove the concrete pads are suitable for holding the two six-unit condo buildings, the paper reports.

Trouble is the subsidiary of Burton-Katzman, on the hook to complete the engineering report and the construction, says it doesn’t have enough money to finance the necessary engineering reports, the Times-Herald says. You can read the full story by clicking HERE

A Roundup of New Dearborn Business Developments

Monday, March 1st, 2010

Wendy's before the demolition. Dearborn Theatre is in the background.

The building that was once home of Wendy’s hamburgers at Michigan and Telegraph has been razed and is expected to be the future home of Sonic burgers.

The deal to land a Sonic at that intersection is about 90 percent complete, according to one city official.

. . . Wendy's after the demolition.

The long-closed Dearborn Theatre also is slated to be demolished. However, a date for the removal of that building isn’t yet know. As we have reported here once before, discussions have been ongoing about building a new Hampton Inn hotel on the site of the theatre complex.

The current Hampton Inn in Dearborn, just east of Brady on Michigan Avenue, will at some point have to operate under a different name as the hotel in its current design does not meet Hampton’s new corporate requirements.

In other development news, the government-run auction for the long-closed La Shish restaurant and adjoining Talal’s restaurant on Michigan Avenue was apparently held last week. No word yet on who submitted the winning bid but hopefully something soon will happen with that eyesore of a building.

And finally, the owners of Ciao, the restaurant on Monroe that was badly damaged in a fire nearly a year ago, tell us that they are close to inking a deal for a new building in a new location in west Dearborn. The popular Italian eatery could open in the second quarter of this year, if all goes as planned.

Comerica Bank to Close One Dearborn Branch

Friday, January 22nd, 2010

If you haven’t already heard, Comerica Bank announced it is cutting 300 jobs or about 3 percent of its workforce and closing six branch offices, including one in Dearborn and Dearborn Heights.

The branch closings will affect about 78 workers. The Dearborn branch being closed is located on Pelham and Outer Drive, according to Crain’s Detroit Business. About 80 percent of those workers will be transferred to other branches and those that do not find jobs will be given severance packages.

The other bank branches being closed are located at Nine Mile and Schoenherr roads in Warren; Cherry Hill and Inkster roads in Dearborn Heights; Livernois and Clarita in Detroit; and branches in Carleton and Lapeer. The closings are caused in part by the growing number of customers doing online banking, a spokeswoman for Comerica tells Crain’s.

We can all be relieved that the most beautiful Comerica Bank branch in Dearborn, located at Mason and Michigan, remains here as an anchor of the west Dearborn downtown. That branch has had a few names on the building.  At one point in the early 1900s it was the P.D. Lapham Bank. The bank was then sold to Henry Ford, who renamed it the Dearborn State Bank, which later became Manufacturers Bank and then finally Comerica Bank.

As for the job cuts, it isn’t clear how many of the 300 job eliminations will be from Michigan.

End of Ride for Dearborn’s Adventure Bicycle

Friday, January 15th, 2010

So another Dearborn store is closing.

Adventure Bicycle, 3806 Monroe in Dearborn.

Sadly, it is a story that seems to be playing out all too frequently these days. With every step towards a recovery we seem to make when a new business opens, it feels like two steps back when one closes.

That’s certainly how it feels with Clayton Hatchard having to close his Adventure Bicycle store on Monroe. The bicycle shop was a dream come true for Hatchard, who would have celebrated his third year in business this spring. Instead, he is holding a 50 percent-off sale on every item in his store, preparing to permanently close at month’s end.

“I take most of the blame for my store’s downfall,” said Hatchard, a 12-year bicycle sales veteran. “I really should have closed up last fall when my ‘kind hearted bank’ overnight turned my line of credit into a loan. But like a stubborn mule, I refused to give up and the past six months have been brutal.”

Adventure Bicycle owner Chad Hatchard remains upbeat about Dearborn's future.

Despite his rough ride, Hatchard remains refreshingly optimistic about Dearborn and his own future.

“I would open a business again if the circumstances were right,” he said. “And I would do it in Dearborn if the timing was right. I love Dearborn and I would never leave. I take at least fifty percent of the blame and the other fifty percent is completely out of my control.”

That’s not to say Hatchard hasn’t had his share of sleepless nights in the past year. There have been many, he says, but he was able to get through this tough period in his life because of the support of his wife and their 6-year-old son.

What you won’t hear from Hatchard is blame that his store closing was the result of paid parking in Dearborn. His customers parked for free directly outside his store. But that convenience couldn’t save his business. Interestingly, the same was true for Bikesport, a bicycle shop on Michigan Avenue in the heart of downtown west Dearborn that had free parking yet it, too, closed in November.

You also won’t hear Hatchard blame our city leaders, the location of his business or his landlord for the failure of his bike store (the building owners actually lowered his rent, he says, in his second year to try and help him). Instead,

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Dearborn’s New ‘Deli On The Avenue’ Opens

Sunday, December 27th, 2009

Deli On The Avenue is located on Military, just south of Michigan Avenue.

Vicki Barndollar says she has been in the food business for about 25 years. But it wasn’t until this year that the 1978 Fordson High School graduate decided to do what many people often talk about but never make the leap to do: open up their own business.

The Dearborn native and resident has done just that with her new Deli On The Avenue, a small but quaint deli shop at 949 Military, just south of Michigan Avenue across from Sacred Heart Church.

“I just wanted a business of my own,” Barndollar says. “I have been in the food business for about 25 years. Instead of working for someone else I decided it was time to open my own business.”

Deli On The Avenue serves up fresh sandwiches, soups and salads, daily. For just $5, patrons can get a nice sandwich, pickle spear and chips. Barndollar says that combo has been the house favorite in the three weeks she has been open. In addition to sandwiches, the deli also offers up muffins, cookies and fruit bowls.

Deli owner Vicki Barndollar, left, and her niece, Heather VanOast, serve up fresh sandwiches daily.

Barndollar previously managed a Moe’s Southwest Grill, helping open one of the chain’s restaurants in Southgate. Moe’s corporate offices put Barndollar through six weeks of training in Atlanta prior to having her manage their store. Prior to Moe’s she managed a hotel down south and spent nine years at the Senate Coney on Greenfield and Rotunda.

Deli On The Avenue does have a small number of free parking spaces at the rear of the building. The spaces are shared with the beauty salon, which is located at the rear of the deli. To access the parking lot, patrons need to use the driveway off Garrison, just east of Military. The city’s paid lot also offers the first 30 minutes free so those just wanting to drop in and order a sandwich can quickly do that, too.

There is outdoor seating alongside the Deli that Barndollar plans to use this spring. She said she wanted to put some seating directly outside of her store on Military but she said city officials, apparently from Building and Safety, told her that wasn’t allowed.

The same Building and Safety official she was dealing with also told her she couldn’t advertise the name of her business – Deli On The Avenue – on the awning over her store, despite the fact that other businesses around town already have names on their awnings. Finally, she was told that putting up a sandwich board to advertise her daily specials to motorists on Military also was off limits.

“They (Building and Safety) were harder to deal with than the Health Department,” Barndollar said.

These actions hardly seem welcoming for a small business owner trying to get started in Dearborn nor does it encourage others to locate in our city if this really is standard operating procedure. We fully understand there has to be rules in a downtown but Barndollar’s requests seem very reasonable and actually could improve the look of the area, particularly the outdoor seating.

Despite her start-up hurdles, Barndollar, to her credit, is very upbeat about finally having her own store in the city she was born and raised. “It is all about keeping it in your own town,” Barndollar says. We agree and wish Barndollar the best of luck with her new Deli On The Avenue.

Winter store hours for the Deli On The Avenue are: 10 a.m. to 3 p.m. Monday – Friday. Beginning in January, the Deli may stay open until 5 p.m. and be open on Saturdays, depending on traffic. For more information, call the Deli at: 313-274-4599.

Dearborn’s Dunkin’ Donuts on Michigan Reopens

Saturday, December 26th, 2009

The Dunkin' Donuts on Michigan, just west of Telegraph, is now open under a new owner.

The Dunkin’ Donuts shop on Michigan Avenue, just west of Telegraph has now reopened under a new owner. The store had been closed for nearly a year.

Dunkin’ store manager Jay Patel, says his uncle Shanker Patel, who owns the donut shop, reopened a week ago Friday. Patel says he and his uncle, both Canton residents, are excited about reopening a business in Dearborn.

It isn’t entirely clear why the store closed in the first place, but Patel said the decision to close was made by the corporate offices of Dunkin’ Donuts. Whatever the reason, we are happy to see the donut shop reopen under new management.

The store’s drive-thru is open 24 hours a day, seven days a week. The lobby of the store opens at 5 a.m. and closes at 10 p.m. daily.

Theater Business Interested in Coming to Dearborn Gets Green Light in Royal Oak

Tuesday, December 22nd, 2009

The same company looking to build a movie theater in Dearborn got the go ahead Monday night to build one in Royal Oak.

For the story that appeared on Channel 7 news last night, click on the photo below.

The Royal Oak Commission voted 5-2 in favor of the theater Monday night.

Emagine Entertainment plans to build near the corner of 11 Mile and Main Street, on the north edge of Royal Oak’s popular downtown area.

The Royal Oak city commission voted late Monday night to approve the project with a 5-2 vote coming after 11 p.m. According other media reports, the sticking point centered around parking.

The Emagine Entertainment complex in Royal Oak will be built on an area originally slated for condos. But with the condo market in the tank, developers moved to a theatre. The proposed project will feature a 10-screen movie theater, 16 lanes of bowling and cocktails. The Emagine Entertainment complex is a 73,000-square-foot building. The $14 million project promises to bring about 100 jobs to the city, according to Channel 7 news.

Royal Oak officiasl say ground-breaking is expected to take place in March and the theatre would open at the end of 2010.

Dearborn Council Approves Extension to Fakhoury

Monday, December 21st, 2009
City Agrees to Demolish Three Buildings on Michigan Avenue

By a 5-1 vote, the Dearborn City Council tonight approved a one-year preferred developer extension to Dearborn developer Hakim Fakhoury.

The vote came after nearly two hours of sometimes heated discussion in the City Council’s meeting room. The lone vote against granting the extension was cast by Councilman George Darany. Councilman Doug Thomas was absent.

The former Brothers Tuxedo building at Michigan and Howard is one of three buildings the city will demolish.

As part of the vote, the city of Dearborn agreed to demolish three of Fakhoury’s buildings along Michigan Avenue. The city will be repaid for the cost when new buildings replace the old. If the project doesn’t move forward, Fakhoury ultimately would have to foot the demolition costs. The buildings include the former Bally/Vic Tanny building, the former Giuliano’s restaurant next to Merchant’s and the former Brother’s Tuxedo building at Michigan and Howard.

Demolition of those three structures is expected to begin in the spring, removing major eyesores from along Michigan Avenue.

In casting the lone dissenting vote, Darany said he didn’t have confidence Fakhoury could move the project forward. The soon-to-be second-term councilman said he’d rather the city try and find another developer for the city parking lot.

But just who that other “developer” might be that Darany mentions is anyone’s guess. One need look no further than the Burton-Katzman mess called West Village Commons that still sits half empty or the city’s inability to attract a developer to do something with the vacant, city-owned Quality Inn at Michigan and Brady. The Quality Inn property had zero responses from developers when it was put on the market, both Councilman Robert Abraham and Mayor John B. O’Reilly, Jr., mentioned at the meeting.

There are currently three elements for the property, according to the Economic and Community Development and city law departments: student housing, a hotel and a free standing parking deck. The Emagine Theatre could be located on the Bally/Vic Tanny site.

Fatburger's corporate office is now looking more favorably at a Dearborn location.

It is the possibility of the Emagine movie theatre coming to west Dearborn that has the corporate owners of Fatburger looking more favorably to opening a Dearborn location. At the meeting Monday night were two of the principals who said they have been working with Fakhoury for more than a year to open a Fatburger in his building at Michigan and Military.

Part of the holdup for Fatburger was that the corporate offices did not think the Dearborn location had proper “numbers” to succeed. The possibility of a movie theatre has helped change that opinion.

As for the student housing, the first phase of the project would house about 244 students with a second phase that would take the total to 432 students. The first phase of this project represents about $10-$13 million of private investment, according to the city’s law department.

Companies Support Dearborn Developer Fakhoury

Monday, December 21st, 2009

Dearborn resident Hakim Fakhoury, requesting a one-year preferred developer extension that his Dearborn Village Partners (DVP) corporation has with the city of Dearborn, has support from two key businesses interested in being part of his multi-million dollar project.

An early rendering of the proposed DVP project on Michigan between Military and Howard.

Fakhoury shared copies of letters with Deepsaidwhat.com that he has from Emagine,who wants to build a movie theatre in west Dearborn, and Moravian Companies, who is interested in bringing apartment living for as many as 600 students into downtown west Dearborn.

In the letters, both addressed to Dearborn Mayor John B. O’Reilly, Jr. and the City Council, the two companies urge city leaders to grant the one-year extension to Fakhoury as a preferred developer for the property along Michigan Avenue between Howard and Military.

City Council will vote on whether to extend the agreement tonight.

“Emagine Entertainment, Inc. continues to have a real and genuine interest in participating in the project,”writes Paul A. Glantz, the founder and chairman of Emagine. “That being noted, undertaking such a project, particularly in this capital market environment, is extraordinarily complex. Accordingly, governmental cooperation in a public-private partnership will be essential to a successful outcome for this property.

“The approved brownfield plan Mr. Hakim Fakhoury has secured is a tremendous asset to the project and it forms the foundation upon which other incentives and tax-based financing mechanisms will need to be layered to help bring this project to fruition.

“In my opinion, no group is better positioned to make this important project more successful than Mr. Fakhoury. Our continued interest in pursuing this project is predicated on Mr. Fakhoury’s involvement as the manager of Dearborn Village Partners and his continued cooperation as the owner of the properties along Michigan Avenue that are a vitally important component of any successful redevelopment of this parcel.”

The letter from Moravian Companies is equally supportive.

“Our team, that includes Campus Village Communities, an experienced and successful Michigan-based student housing development and management company, has been and continues working with Dearborn Village Partners on a project to bring apartment style living, for as many as 600 students, to Downtown West Dearborn,” writes Jeffrey P. Helminski, managing partner for Moravian. “The project will be a partnership involving our team, Dearborn Village Partners, U of M-Dearborn and Henry Ford Community College. This is a tremendously complex project also involving the City of Dearborn, a hotel developer, a movie theater company and Mr. Hakim Fakhoury as the owner of a significant number of properties forming the project’s marketing window along Michigan Avenue.

“ . . . Governmental cooperation in a public-private partnership will be essential to a successful outcome for this or any project on this property. The existing approvals already in place from the Michigan Economic Development Corporation, which were secured in partnership with the City of Dearborn, are essential to move this project forward. My understanding is that these tax credits and reimbursement opportunities are available only to Dearborn Village Partners at that location. While changes may be possible, they would seem very unlikely given the fiscal condition of the State.

“We were attracted to this particular project because of the vision and planning of Mr. Fakhoury and Dearborn Village Partners. He controls properties vital to the success of this project and his involvement as the manager of Dearborn Village Partners is important to our continuing interest. We believe this project could be a beneficial enterprise for us and the City of Dearborn in this very difficult economy.

The prospect of increasing the customer base in this vital district will greatly benefit all of the surrounding businesses and the City of Dearborn.”

Emagine, Moravian Companies and Fakhoury, at the request of O’Reilly, were scheduled to attend the Dec. 14 City Council meeting where all residents could hear first-hand about the project, but for reasons not quite clear Council President Tom Tafelski turned that idea off and requested a special study session the following day. With such short notice, Fakhoury says neither Emagine nor Moravian officials were able to attend. The study session was not videotaped for residents to view either.

As Dearborn Councilman Robert Abraham said earlier on these pages, the one-year preferred developer extension for Fakhoury’s DVP needs to be approved. Developers aren’t knocking down the door to do work in Dearborn and the Burton-Katzman mess known as the West Village Commons is perhaps a lesson why it isn’t always safe to work with developers who have no vested interest in our city.

Fakhoury is a Dearborn resident who happens to own a large portion of vacant buildings along Michigan Avenue. He definitely has a vested interest in making sure this project is a success. While some people may dislike the design of his two relatively new buildings, one at Michigan and Military and the other at Michigan and Howard, they are far better than the eyesores that were there before.

Let’s hope, as one reader of Deepsaidwhat.com said in a recent comment here, that our elected city leaders put “their egos in the closet and do this (approve the one-year preferred developer extension) for the citizens of Dearborn” and help these developers “attract new business to Dearborn.”