Dearborn Councilman Abraham Steps Up Pace
Maybe it was the strong finish in his recent re-election, but if you haven’t noticed, Dearborn Councilman Robert Abraham these days is clearly being more visible and communicating more with residents. We like the new energized Abraham. It is refreshing to see a council member take a position on a matter, regardless of how popular or unpopular it might be.
In his latest column, sent here and to the local papers, Abraham takes a look at the preferred developer agreement Dearborn has with developer Hakim Fakhoury, which is now up for renewal. Abraham raises some very valid points in his column; chief among them is that there isn’t a list of developers banging on Dearborn’s door to rebuild downtown West Dearborn.
Fakhoury's building at Howard and Michigan is home to Panera, which has become the new gathering place for Dearborn's coffee crowd.
Fakhoury is requesting a one-year extension that his Dearborn Village Partners (DVP) corporation has with Dearborn. (See our earlier story by clicking Here.)
As Abraham rightly points out, there is no cost to the city of Dearborn for granting the extension.
Yes, Fakhoury has corporations that own property along Michigan Avenue with unpaid taxes that he is the principal owner. But Abraham tells us that those unpaid taxes shouldn’t come into play since the preferred developer agreement only gives DVP the exclusive right to market and plan the development of the property.
Abraham tells us that if and when an actual development is reached to build on the property, he would recommend that all property controlled by Fakhoury, through direct or indirect ownership and control, “would have all City taxes paid and current.” This, by the way, is a requirement of the Dearborn City Charter.
Abraham says DVP’s proposal includes a three story building with first floor retail, bowling alley and movie theater. We aren’t sure in this economic environment how quickly something like this could materialize but with nothing else on the table, granting a one year extension seems like a smart option now.
Finally, the city also has to consider what not granting the extension means. In 2007, we wrote here about the State of Michigan granting Fakhoury’s DVP a state brownfield tax credit valued at $9.1 million and state and local tax capture worth $46 million. Not granting the extension could mean the loss of millions in tax credits to get such a project off the ground.
The tax credits back then were to support a multi-phased mixed-use development across 12 sites along Michigan Ave. between Howard and Military. According to the state of Michigan, the DVP 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.”
Councilman Abraham’s column begins below:
Dearborn Councilman Robert Abraham
Dearborn has been seriously affected by the American auto industry collapse, home foreclosures and the terrible recession, which has resulted in us losing 60,000 white collar auto jobs further hurting our business districts, especially downtown west Dearborn. Meanwhile no new developers are approaching us to develop in downtown west Dearborn and projects approved during better times, now require going back to the drawing board.
One developer is requesting a one-year extension of the preferred developer agreement with the City of Dearborn; that is Hakim Fakhoury’s – Dearborn Village Partners (DVP). The DVP project is proposed on the north side of Michigan Avenue between Military and Howard. DVP is planning a three story building with first floor retail and a bowling alley, a second and third floor movie theater offering food and alcohol, along with other amenities. In cooperation with HFCC and U of M – Dearborn, plans also include 2 – 4 bedroom college dorm housing, which could have a very positive impact.
In order to satisfy proposed DVP tenants and loan companies, a one year extension of the preferred developer agreement is necessary so that DVM can submit revised plans for this project. The agreement would guarantee that for one year the City of Dearborn would not market that lot to anyone and allow DVP to market and develop the property and lots. There is no cost to the City of Dearborn or the taxpayers to extend this agreement.
Mr. Fakhoury and his companies have invested multi-millions into downtown west Dearborn, he is the one of the largest developers and property owner and this is an attractive opportunity at a time when there simply are not any other options; expect to do nothing. No developers returned proposals on the Quality Inn property controlled by the Dearborn Historic Museum.
Without this one year extension of DVM’s preferred developer agreement, this project would collapse at a time we cannot afford to allow this to happen.
Therefore, I am planning to support the extension to DVP based on the proposed project, current economic conditions and facts presented to the Council by DVP, the Mayor and the Administration; as well as the important point that we have no other viable alternatives at this time.
Councilman Robert A. Abraham
December 18th, 2009 at 2:02 pm
The movie theater sounds nice since MOST people drive to Southgate’s MJR, But a bowling? What about Oxford Lanes, right down the street?
December 18th, 2009 at 5:35 pm
Ah, yes, I forgot about the the state money mega tax deal. The clock is ticking on that one. It has a five year limit on it. if nothing happens the money goes bye bye. the other stipulation is that once you take down a building, the clock starts ticking, which is why none of Hakim’s condemoned buildings have come down.
I agree with no new offers on the table and this not costing the city any money, it makes sense to extend the one year contract.
December 18th, 2009 at 7:31 pm
Way to carry the ball for Hakim. We realize you didn’t pay taxes on property you owned in the past, until you were forced to do so, however Hakim is making you and anybody else on he Council you have vote with you, look like chumps. Show some guts, and blow this guy away, he thinks he is playing a game of monoply.
December 18th, 2009 at 8:12 pm
I don’t agree with Robert on much, but he is right on this one. An extension costs nothing and the council should extend it one year. It’s a no brainer.
December 19th, 2009 at 12:28 am
Why would you extend a contract for someone who has done nothing, owes back taxes already and has properties in foreclosure? Sounds like a swell guy. This is why Dearborn is in such a mess.
Abraham didn’t pay his taxes either until he was busted so I guess that is why he likes this guy.
I’m confused. Why don’t we get someone new in who WILL produce? We don’t need another deadbeat landlord owning the City.
He wants to be the next Newman and we all see the problem with that. Newman would rather keep the buildings empty and take a tax loss than give a person a break in renting his places. Hence all the vacant properties already on Michigan Ave.
December 19th, 2009 at 8:53 am
Confused: there is no one else lined up looking to develop in Dearborn. that’s the problem. i’m not here to defend Hakim, the guy is an arrogrant jerk, but if he can develop the area then let’s give it a try.
the two buildings he built aren’t architecture wonders but they sure is heck are better than the city led Burton-Katzman mess called West Village commons. hakim has a reason to try and make it work because he is so loaded with undeveloped property.
don’t worry about the tax part, if he landed a deal he would have to pay them off before advancing.
with no one else looking to develop Dearborn and Katzman in court getting their asses kicked by Dearborn, the one year extension is worth doing.
December 19th, 2009 at 10:26 am
How pathetic that the city is now being run by bagmen for what appears to be laundered money.
December 19th, 2009 at 11:32 am
How come at the last to meetings Hakim has not brought the theater development man to the table. Has any one on the council called him to see if he is really on board with Hakim? Also the bank and merchants wine are not goning to sell their building. Has any one on the council called them? Council VOTE NO on the extension. And let DVP die and when they are gone the developers will come belive me I have first hand info from two of them that have tried to work with Hakim and walked away because Hakim can’t close the deals.
December 19th, 2009 at 3:09 pm
that’s the problem with Dearborn. they keep waiting for the knight on the white horse to come and rescue this place. wake up. it isn’t going to happen.
rather than battling guys like Newman and Hakim, who have half of the west Dearborn property tied up, work with them. this is just getting silly.
Newman and Hakim are two of a kind. no one can change them so our elected leaders need to find a way to help them land developers here. trouble is council members, building and safety and even the mayor turn this into a popularity contest. if they like teh developer they work with you. if they don’t they make your life miserable.
you see, the city thought Burton Katzman was that knight on the white horse and look where that got all of us. the Press and Guide photos of them all holding and singing and dancing, what a joke. now look. it is one big mess and we are left with a shithole building with no design. cookie cutter crap from Burton Katzman.
Get off the shitter and put away your personal issues with Newman and Hakim and help these idiots attract new business to Dearborn. City leaders put your egos in the closet and do this for the citizens of Dearborn not your stupid egos and crap you have with these developers. I don’t care that you don’t get along with these jerk ball developers. you don’t have to like them but your jobs, the reason i voted for all of you, is to fix our city. we just need some business and people downtown soon or west Dearborn will die and fast.
December 19th, 2009 at 3:49 pm
to therealfacts: It could have been said with better grammar, but it couldn’t have been said better!
December 19th, 2009 at 7:17 pm
Nice try Bobby — from one tax evader (you) to another (hakim). Newman at least has a somewhat past record for doing things, whereas your boy hakim is all b.s., and nothing but promises, which he knows won’t materialize.
December 20th, 2009 at 7:58 am
therealfacts – don’t care about the grammar at all you said it well. Thanks.
December 20th, 2009 at 12:55 pm
Based upon all the reasons Councilman Abraham has given, I don’t see any reason to not support the DVP project. I guess many of you just don’t realize how this is the lousiest job and development market in many of our lifetimes and that no developer is beating down the doors of our city to develop anything, especially in west downtown Dearborn and it is becoming a ghost town.
Fakhoury has invested multi-millions in the city and despite his past issues, he is the most viable person to develop this property, plain and simple, like it or not.