Archive for the ‘Business’ Category

Our Role in Helping West Dearborn Retail

Sunday, January 29th, 2012

We’ve talked a lot on these pages about the lack of retail in downtown West Dearborn. Many have commented about how they would like to see a (fill-in-the-blank) chain store open in our city but there are many reasons why that isn’t going to happen here any time soon.

Which brings us to this story that aired recently on ABC News. It is about a small town in Ohio and what residents there did recently to help keep a hardware store open.

It got us thinking about some of the remaining downtown West Dearborn retail stores we have, like Nichols Ski and Snowboard Shop, Steven Bernard Jewelers, Campbells Paint and Wallpaper, Village Picture Framing & Art Gallery, Nigosian’s Carpet and Dearborn Music, just to name some.

How many of us have stopped in these stores in recent months and purchased anything? The story below got us thinking about how important of a role we all play in helping keep open the remaining retail stores we do have in Dearborn.

We all play a part in helping retail stores survive in this, our city . . .

Deal Reached on Vacant Dearborn Hotel

Sunday, January 8th, 2012

The new hotel is expected to open later this year.

A near-completed hotel on Michigan Avenue that was slated to open as a Holiday Inn Express a couple of years ago now has a new owner, who is working to open the hotel later this year.

We have written several stories about the hotel, the most recent in November when we received word that a new buyer was working on purchasing the nearly-completed hotel from a bank. The good news is a deal was reached between the two parties and the hotel is expected to open as a Holiday Inn Express.

The property, just west of Telegraph on Michigan and adjacent to Toys R Us, landed in the hands of the bank when the original developer simply ran out of money and couldn’t finish the project.

The out-state buyer, who owns other hotels, intends to open as a Holiday Inn Express, a person familiar with the negotiations tells us.

Dearborn’s O’Sushi Restaurant Expanding

Saturday, January 7th, 2012

Three years after opening, Dearborn's O’Sushi is now expanding.

It’s always nice to see a family business do well in Dearborn. And that is the case with O’Sushi, which opened three years ago this month.

We wrote about O’Sushi’s grand opening in January 2009, when Canton couple Shawn and Sophia Kang placed a bet that Dearborn was the right location for a second restaurant.

Now the Kangs are expanding their Japanese restaurant, taking over the vacant space created when the next-door Thai food restaurant closed.

Shawn Kang told DeepsaidWhat the couple decided three years ago to branch out from Canton and come to Dearborn because they loved our city and Ford Motor Company.

With good service and good food, it’s easy to see why O’Sushi is now expanding.

If you haven’t stopped in and visited O’Sushi drop in and try the fresh food and say hello to Shawn, who is there on most days.

We wish the Kang family the best on this next chapter of their Dearborn restaurant.

One Building down in West Dearborn, Two to Go

Wednesday, December 14th, 2011

Giuliano's before . . .

Fakhoury says ‘will remove all buildings as soon as I can.’

One of three dilapidated buildings in the west Dearborn downtown district has finally come down but the city-imposed deadline to remove the other two buildings by week’s end will not be met.

Back in September, Dearborn City Council passed a resolution that by Dec. 16 (this Friday) the former Giuliano’s restaurant, Brother’s Tuxedo and Bally’s Vic Tanny would all be razed.

The buildings, all located between Mason and Military on Michigan Avenue, needed to be removed as the properties were part of a large-scale redevelopment proposed in 2005 by Dearborn developer Hakim Fakhoury.

As part of the agreement with the city and a way to save demolition costs, the foundations for each of the buildings could remain until the property was ready to be developed. So the Giuliano’s restaurant (only half of the building has been standing for several years now) was removed but the foundation remains.

. . . and after.

It isn’t clear what will happen next but Fakhoury’s request to city council for an extension to remove the buildings was denied.

Fakhoury tells Deepsaidwhat that he agreement that was signed only “contemplated” dates in which to remove the buildings.

“No one knows how much work it is to raze these buildings and the effort it entails,” Fakhoury said. “These date are arbitrary dates and should not be used as an excuse to inflict more financial damage to me more than I have already bared. I am moving at my financial pace and will remove all buildings as soon as I can. If the city seeks to use this as a reason to try to destroy me than I would of course I would have to protect myself by filing an action against them. We are living in very tough times and I am like many am only trying to survive them.

“I still feel very strongly that the request by the city to remove the buildings is not going to make downtown west Dearborn more appealing,” Fakhoury continued. “The intent has been to find a J/V partner who would invest in DVP (Dearborn Village Partners) and move the project forward which of course would include in removing the buildings at his expense not mine. I have spent much time and money to secure the tax credit that would be used to redevelop much of west Dearborn. These credits have become extinct and will be very valuable when the economy changes. DVP will have the ability through a financially strong J/V partner to amend the brownfield plan to even incorporate more west Dearborn buildings. I hope the city takes all this into account before they try to destroy me again and DVP.”

The tax credit Fakhoury mentions is on a state brownfield tax credit valued at $9.1 million and state and local tax capture worth $46 million. Regular readers of Deepsaidwhat.com will recall the story we wrote when the state of Michigan in December 2007 made a press announcement about the large-scale development planned in downtown. Here is what the state had to say:

Dearborn Village PartnersA state brownfield tax credit valued at $9.1 million and state and local tax capture worth $46 million will support a multi-phased mixed-use development across 12 sites along Michigan Ave. between Howard and Military streets in Dearborn. The project will completely renovate one city block in the city’s downtown and involve the construction of mixed-use retail and housing, including two 10-story mid-rise condos and a tri-level 881-space parking deck. The project is expected to generate $125 million in capital investment and create 350 new jobs.The West Dearborn Downtown Development Authority is assisting the project with $42.5 million in tax capture for public infrastructure activities.

Clearly, in this economy that development is simply a bridge too far. Dearborn city officials must now decide whether to remove the buildings on the city’s dime and then put a lien on each of the properties for the costs, which would be repaid if and when the property was developed, or let the buildings rot the downtown.

While taking action to remove the buildings would likely be a source of contention among some residents, it would go a long way to improving the look of the downtown. No one can deny that the removal of the Quality Inn at the corner of Michigan and Brady has done wonders to improve the look of that corner. Doing the same along Michigan Avenue to Fakhoury’s two buildings would have the same visual impact.

Having a clean canvas of land can go a long way to helping other potential developers dream about what could be built on each of these parcels of land.

End of the lane for Oxford Lanes in Dearborn

Tuesday, December 13th, 2011

Oxford Lanes will close Dec. 31, 2011 and be replaced by a VW car dealership owned by LaFontaine, who owns a dealership across the street.

Finding a place to bowl in Dearborn will become a lot more difficult this summer.

Oxford Lanes — where Dearbornites have bowled for 53 years — will become just another memory, replaced by a car dealership and joining a growing list of alleys in Dearborn and across the country to disappear.

Denny Herwig, assistant manager at Oxford Lanes, says after 25 years at the bowling alley he will take some time off.

“I am going to miss this place,” said Denny Herwig, who has worked at the bowling alley for 25 years, the last 11 as assistant manager. “I spent a lot of time here and have lots of good memories. I guess this is progress. Change is inevitable.”

If all goes as planned, the bowling alley will close Dec. 31 and then be razed to make way for a new Volkswagen dealership that will fly the banner of LaFontaine, who owns a string of dealerships directly across Telegraph on the east side of the street.

Herwig says owner Oxford owner Mark Voight will likely roll the last ball on Dec. 31, New Year’s Eve, before turning off the lights for good that same evening. Voight, however, won’t be out of the bowling business. He will continue to own and operate a string of bowling alleys in the area, including Merri Bowl in Livonia; Skore Lanes in Taylor and Woodhaven Lanes in Woodhaven.

Oxford Lanes on Telegraph, just south of Michigan Avenue, opened in 1958. Voight simply couldn’t pass up the offer LaFontaine made for his Dearborn business, Herwig said.

The only remaining bowling alley in Dearborn is the Mercury on Schaefer. At one time Dearborn had as many as 10 bowling alleys, including Maple, Westborn, Pinetree, Holiday Bowl, Schaefer Lanes and Oakwood Blue Jackets among others.

“Most bowlers will find another center to bowl at,” Herwig said. “As for me, I am going to take some time off.”

More Detail on Valet Parking Proposal in Dearborn

Thursday, December 8th, 2011

Cambridge Real Estate and Fakhoury Ventures continue to push for valet parking in downtown West Dearborn but whether it will ever get approval from City Council is another matter.

In a second letter to business owners in West Dearborn, Yasir Kaskorkis, who is leading the effort, says he has received “overwhelming responses from many of you regarding the complimentary valet parking for the Downtown District.”

Kaskorkis explained the valet parking program to merchants in this note below:

“To briefly explain the program, our proposal is to have complimentary valet parking from 5 p.m. – 2 a.m. Thursday – Saturday.

There will be 4 drop off sites located at each end of the district near parking structures/lots that are able to accommodate between 20-40 spaces per site. We are determining the number of parking spaces needed for each drop-off site and hopefully with the approval of City Council, assign a flat rate fee per parking space for a 90 day period.

Currently, it is unclear whether the DDA will assist in the funding of this program. There are many businesses in the district who have formally expressed interest. The businesses are:

Bistro 222;  Crave Lounge; Ciao’s Restaurant; Double Olive; La Cigar; Pizza Papalis; The Post.

If you are interested in participating in this program, please feel free to contact me via email or cell. I will contact Republic and inform them to install the validation system at your site. Again, our goal is to enhance downtown West Dearborn to make it a viable retail destination. We look forward to a constructive working relationship with all of the parties involved.”

Kaskorkis  also provided a four page document to each business owner in downtown West Dearborn about how the valet parking would work. Below are some of those details from the document:

Downtown District Valet Parking Program

The West Dearborn Businesses have plans to introduce a 90 day pilot program for Complimentary Valet Parking in the Downtown District. The complimentary valet will be scheduled three days per week with the hopes of having the program working 7 days per week. The days of the week will be Thursday, Friday, and Saturday, between the hours of 5 p.m.to 2 a.m. There will be 4 drop off sites in the district, all located at each end of the district near parking structures/lots that are able to accommodate the volume and traffic for the program. Our goal is to enhance downtown West Dearborn to make it a viable retail destination.

Cost of the Valet Parking

The cost of the valet will be absorbed by the valet parking company for the first 90 days. The cost for the parking spots will be allocated to all businesses involved. The rate provided for each spot will be multiplied by the number of spaces devoted for valet and divided by the number of participating business owners. The owners will be responsible for paying the fees to republic at the end of the every month. **The businesses are requesting, for the 90 day trial, a cost of $1.00 per day per space designated for complimentary valet parking. The $1.00 rate for the designated spots must be paid regardless, thus guaranteeing income for those specific days over 90 days. It is our hope the DDA could donate funding to mitigate the cost of the business owners.

Traffic Flow

There will be 4 Drop-off sites in the District. At each drop-off site, there will be three signs placed at different parts of the property to reduce the congestion along Michigan Avenue. Placed on the North and South side of Michigan Avenue (2 between Oakwood & Monroe, 2 between Tenny and Military) will be signs directing traffic towards the valet drop-off sites.

 

Free Valet Parking Proposed for West Dearborn

Tuesday, November 29th, 2011

The paid parking conundrum in downtown West Dearborn could be helped with the introduction of a free valet parking system for the entire downtown district, at least that is a plan being shopped by Cambridge Real Estate and Fakhoury Ventures.

In a letter to Deepsaidwhat.com, Yasir Kaskorkis, the property manager for Cambridge Real Estate, says he and Fakhoury Ventures have been working with the ECD and DDA to help support a free valet parking system. It is an interesting idea.  His letter begins below.

 

To Whom It May Concern:

My name is Yasir Kaskorkis and I am a property manager for Cambridge Real Estate, who also oversees all Fakhoury Properties in Downtown West Dearborn. As many of you are aware, there has been a decline in patronage to the downtown district since the necessary paid parking increases took effect in July. Besides the economic conditions, a competitive project in Allen Park (with free parking) and a decrease in business population have affected us tremendously. You will all agree the businesses in the district with no paid parking are at a significant competitive advantage to those who require their patrons to pay.

Paid parking has been a controversial topic, and it looks as though it will continue to be for some time. As business people, we must learn to work within our constraints. That is why over the past several months Cambridge Real Estate and Fakhoury Ventures have been working with the ECD and DDA to help support a free valet parking system for the entire downtown district (the first of its kind in the Metro-Detroit area). We will be requesting marketing funds from the DDA to help fund this operation. The funds will serve to alleviate the burden of operating the system from the business owners and to promote the free valet parking system. These are funds we desperately need in order to make this project successful. The amount of funds put forth by the business owners will be dependent on the amount of funds approved by the DDA. As we inch closer to accomplishing our goal, we politely request your support for the district wide valet system. Your patrons will be treated to free valet and will no longer have to be concerned with parking fees. We have plans to promote the free valet system through various media outlets, in attempts to gain back the clientele that once brought prosperity to Downtown West Dearborn.

The more parking rates increase, the more difficult it will be to attract customers and retain current business. The time to act is now; we need your support more than ever. We ask that you spread the word in an attempt to bring people together to make Downtown West Dearborn a destination spot in the Metro-Detroit area. Everyone is affected by lack of business, from your managers to your employees. Our goal is to enhance downtown West Dearborn to make it a viable retail destination, and with your help we can make this happen. We look forward to a constructive working relationship with all of the parties involved. Please call and/or email your Dearborn Councilman and Woman or your DDA Board Member.

Thank you,

Yasir Kaskorkis

22022 Michigan Avenue

Dearborn a Five-Star City for Economic Development

Tuesday, November 29th, 2011

The City of Dearborn received the highest rating possible by the University of Michigan-Dearborn’s Center for Innovation Research (iLabs) for fostering entrepreneurial growth and economic development.

Dearborn was honored as a five-star community through the program known as eCities for its efforts to promote investment and for its support of businesses pursuing innovative endeavors.

This is the first time that Dearborn has been named a five-star community by the UM-D’s iLabs, having earned a commendable four-star designation in 2010.

Dearborn Mayor John B. O’Reilly, Jr. said the five-star designation reflects the city’s commitment to encouraging a dynamic and diversified economy.

“Dearborn continues to promote economic development and commercial investment. We also have a great track record of smoothing the way for innovative approaches. We appreciate this distinguished recognition of our efforts,” O’Reilly said.

“We are fortunate that there is a high level of interest among a variety of large and small companies who value the business climate in Dearborn and are investing here. This is illustrated by the 300 commercial re-occupancies we saw in the past year,” O’Reilly said.

Most notably, Severstal North America recently engaged in a $1.5 billion investment, formalizing its North American Headquarters in Dearborn. The 2010 addition of more than $700 million in steel finishing elevates this advanced manufacturing center to a global leader in steel technology.

O’Reilly said, “Severstal’s investment in their operations in Dearborn extends the life of this plant by at least 50 years and retains nearly 2,000 local jobs. This is great news for Dearborn and southeast Michigan.”

Dearborn was honored along with 43 other communities recognized by iLabs at a ceremony at UM-Dearborn on Nov. 16.

In addition to Dearborn, 20 other cities were named five-star communities, including Ann Arbor, Auburn Hills, Grand Haven, Farmington, Kalamazoo, Rochester Hills and Southfield.

“We are pleased to have participation from so many communities throughout the state in eCities 2011,” said Tim Davis, director of iLabs.

“The focus of this project is assisting local communities by identifying best practices and methods that they can implement, which will aid with job growth strategies, economic diversification, and development of entrepreneurs,” he said.

The annual eCities research project, which began in 2007, uses data supplied by the participants, as well as other public records, to assemble a six-factor, 32-item index of entrepreneurial activity, looking at such factors as clustering, incentives, growth, policies, community and education.

The study focuses on entrepreneurship because of its importance to expansion and diversification of Michigan’s regional economies and the impact small businesses have on job creation. To date, 138 communities across Michigan have participated in the study.

Let’s hope Dearborn can leverage this award as a way to attract other businesses to locate in our city.

Dee’s Hallmark in Dearborn to Close Next Year

Wednesday, November 23rd, 2011

Say goodbye to another Dearborn landmark. After 26 years of serving Dearborn, Dee’s Hallmark on Michigan Avenue will close its doors sometime after the holiday season.

Dee's Hallmark is closing after 26 years serving Dearborn.

The owners, Don and Dee Belcher, are closing the store so they can retire. Clerks in the store say paid parking, which has hurt business, helped expedite the couple’s retirement plans.

The store plans to have a liquidation sale sometime in January 2012. The building has been for sale for more than two years, listing at that time for $640,000.

When we wrote about the building being put on the sales block two years ago, Mr. Belcher said in a note he would do all he could to remain open even if it meant moving to a new location.

“My commitment to survival has always been strong but after closing (3) other stores and using the money to keep Dee’s going there was not enough left to (purchase the building Dee’s is currently located),” Mr. Belcher wrote in 2009. “It is common knowledge that this is not the best time to sell commercial property as evidenced by the many vacancies in our area. However should it sell I will make every effort to negotiate a favorable lease agreement with the new owner. If that is not possible I will look to relocate as close to my current location as I can. A smarter man would have given up long ago I think I’m just to dumb to know when it’s time to quit!!!!”

Dee’s hung on for as long as they could.  Like any business, costs go up each year.  That can be offset with additional sales but with nothing around Dee’s to help draw new customers, remaining open was no longer a good business equation.

We will miss what was easily the best card shop in Dearborn.

A Cameo Appearance for H&R Block in Dearborn

Monday, November 21st, 2011

If you were walking through Westborn Mall in Dearborn Sunday morning and were wondering what all of the camera and sound crews were doing we can tell you they weren’t shopping.

Instead, the more than half dozen trucks in the parking lot of the mall, along with security personnel, sound and catering crews were all there to support the filming of an upcoming commercial for H&R Block, the income tax people.

The filming for the national ad was taking place in the H&R Block office in the mall. So when you see the commercial air in the coming weeks and listen to the testimonials from people in the ad you’ll know it was shot here in the company’s Dearborn office . . .