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.

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.

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.

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.”

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.

(more…)

How Good Reviews Can Help Other Nearby Dearborn Businesses 

We’ve written before on these pages about what a gem of a restaurant Michael Chamas has in his Bistro 222 here in Dearborn. With Ciao still not reopened, Mr. Chamas has quietly filled that void offering a great selection of food with a wine list to now match.

We only mention Bistro 222 here again because of a review the restaurant received in the latest issue of the Metro Times. The headline of the story says it all: “A west side winner”.

The restaurant reviewer closes his story about Bistro 222 with this paragraph:

“Dearborn is off the radar for many local gourmands who, when dining in the burbs, tend to concentrate on the culinarily rich and diverse northwest or to some degree in recent years, Grosse Pointe and environs. The stylish Bistro 222 provides a reason, as a Michelin guide might recommend, to make a special journey to Dearborn. It is difficult to find such a satisfying — and affordable — dining experience in our area these days.”

That paragraph got us thinking about how a favorable review about one business can help other businesses in the area, as well. Steven Bernard Jewelers is one such place as he is located in the same building as Bistro 222. New visitors to the restaurant might then poke their head into Bernard’s jewelry store, which is also very stylish and filled with many one-of-a-kind gifts.

But where else could a couple new to Dearborn walk to after eating at Bistro 222? Village Picture Frame and Art Gallery is now just across the street and a good place to shop for something unique. Other businesses in the West Village Commons one might include in their night out: The Well bar, La Cigar and Cold Stone Creamery. Joining these businesses is a new martini bar coming into the location that once housed Caribou Coffee (we will have more about the new owners of the martini bar later).

We’ll be the first to admit there is a lot more that needs to be done in downtown West Dearborn so it isn’t just a one-stop destination. But if restaurants like Bistro 222 can at least put Dearborn on the consideration list of new visitors, it is a building-block step in the right direction.

Dearborn’s Bikesport has officially closed its doors, forced out by a combination of circumstances including its credit card processing company; the country’s worsening financial crisis and a downtown filled with vacant buildings, according to the company’s website.

“A number of factors converged to make Bikesport, Inc. close,” says Bikesport founder and owner Tom Demerly. “Had all of these factors not happened within the same time period Bikesport, Inc. would have survived. It was the convergence of these factors that ultimately lead to our closure. The primary contributing factor was a “reserve account” established by our credit card processing company during the height of the financial crisis.”

Demerly says on his website that Bikesport’s credit card company said in January that it was establishing a “reserve account” in which they would withhold $60,000.00 of the bike store’s sales as security.

“Bikesport, Inc. did not have any outstanding liabilities to the credit card processor,” Demerly says. “We initially believed we could maintain operations normally but as the economy worsened and other factors emerged we could no longer operate without the $60,000.00 removed from our sales by our credit card processor.”

Tom details more about why he closed his shop at his website. You can click HERE to read what he had to say.

We are sorry to see Tom close his business at 21938 Michigan Ave. — his 14th year in business this year — and wish him the best of luck with his future endeavors.

Here is a great new way to support Dearborn businesses.

A new marketing initiative created by a local economics team and students from Dearborn High School could help jump start the Dearborn economy now with the holiday season in full swing.

The new “Shop Dearborn” campaign is the brainchild of Dearborn High School’s Intro to Marketing class. The program is simple: purchase a “Shop Dearborn” card for $25 and then enjoy discounts at more than 200 local participating businesses. Discounts are recurring and the card is active for one year.

The key-chain card, available to both Dearborn residents and non-residents, can be purchased at the school or by clicking HERE.  Participating businesses can also be found at this site. Those businesses who want to participate in this program can do so for free and proceeds will help benefit the Dearborn Education Foundation and ultimately Dearborn Schools.

WDIV Channel 4 did a story after our post here.  The Channel 4 story can be viewed by clicking  Shop Dearborn

The Dearborn City Council could take a vote as early as this week on whether to extend a preferred developer’s agreement with local investor Hakim Fakhoury.

The preferred developer’s agreement is for a major development project on the block north of Michigan between Military and Howard. The agreement, which gives Fakhoury exclusive development rights to the city-owned parking lot, is set to expire at year’s end, according to the Dearborn Times Herald.

Fakhoury, who already owns many abutting properties, tells the Times Herald that the project would include an Emagine! movie theater, retail suites and condominiums or student housing.

We wrote about this proposed project here a few years ago, before the economy took a nosedive.

City Council President Thomas Tafelski tells the Times Herald  he is concerned about how much Fakhoury’s proposal has changed since it was first introduced more than four years ago.

“If the project warrants additional time, then that’s something the council must consider,” Tafelski tells the Times Herald. “But I will also say if the project doesn’t have proper financing, proper direction or the proper modifications, then maybe we should shelve this project and seek new proposals or just let Mr. Fakhoury develop the properties he already owns along Michigan Avenue.”

One of the main sticking points is over parking, the Times Herald reports below.

When the agreement was first signed, city officials indicated they would be willing to build two parking decks to support the project. The tentative plan called for the city to build the structures and then recoup the costs through tax revenues generated by the accompanying developments.

The same model was used by the city in developer Burton-Katzman’s West Village Commons, directly across the street south of Fakhoury’s project, but has since shown that it exposes the city to too much liability. Since the WVC decks were built in 2005, the city has been forced to cover about $2.5 million in revenue shortfalls caused by Burton-Katzman’s failure to complete several portions of the project that would have been contributing to the bond payments.

But Fakhoury said he is unfairly being punished for Burton-Katzman’s misdeeds. Fakhoury said he purchased additional properties to help facilitate the project with the understanding that the city would build the decks. Now he’s stuck holding properties that he said are liabilities — without the help of the larger project to generate economic activity.

“I have done everything they’ve asked of me,” Fakhoury said.“I’ve brought them letters of intent (from prospective tenants), I bought the buildings, and now they don’t want to do what they’re supposed to.”

To read the entire Times Herald story, click here.

Snap Fitness, a franchise business that started in Minneapolis in 2003, will soon be moving into Dearborn.

Snap Fitness is moving into the former Boston Market building on Telegraph, just north of Cherry Hill in Dearborn.

The building at 136 north Telegraph Road that once housed a Boston Market is in the process of being transformed into a fitness center with state-of-the-art equipment that members can access 24 hours a day, seven days a week.

Snap Fitness which launched in just 2003, today has more than 2,000 locations and some 400,000 members globally. The fitness center’s recipe for success appears to be taking the most readily used health equipment and putting it into smaller, passcard-secure locations with affordable membership pricing. Inc. Magazine’s  annual survey of fast growing companies listed Snap Fitness as the second-highest concept in the health category. Overall, Snap Fitness was one of the top 20 fastest growing privately held companies in the U.S., according to Inc.

The remodeling of the former Boston Market, located just north of Cherry Hill, is underway but temporarily came to a halt Tuesday, Dec. 1, when Dearborn city inspectors issued a stop-work order. City officials told us the stop work order was issued because remodeling work was being done inside the building without a permit. Gutting the building does not require a permit but once work begins on remodeling one is required.

Once the permit is issued, work on the inside of the building will continue. The Snap Fitness website lists the new Dearborn location but not yet a date for its official opening.

It is nice to see some new retail move into Dearborn. We welcome the new business owners to the neighborhood and wish them the best of luck.