Lava Lounge in Dearborn Heights.

DEARBORN HEIGHTS — At one point considered a “sleepy little town,” the city of Dearborn Heights has experienced an awakening in the last few years, as an influx of Arab American residents have established a large presence there.

Soaring property values and new vibrant businesses have turned the city into an attraction, shaping a recent economic turn-around. Plazas with once –empty parking lots and businesses on the verge of extinction have transformed into well-trafficked, radiant hot spots for young adults and families. 

In the north side of the city in particular, business plazas have either been re-worked or expanded to make room for Arab American entrepreneurs, many of whom have already been doing business in Dearborn for years and decided to branch out to Dearborn Heights.

Local Arab American residents who might want to head to a bakery, go grocery shopping or enjoy an evening at a hookah lounge, are no longer driving to Dearborn to do so.

Businesses that were originally established in Dearborn, such as Golden Bakery, Al-Ameer, Ollie’s, Greenland Supermarket, Al-Basha Subs, Anana’s Cafe, Lebon Sweets and a halal meat Rams Horn, have now all found a second home in Dearborn Heights. 

City officials appear to be enthused by the recent surge and remain optimistic that its just the beginning of a long road ahead. 

Ron Amen, the city’s director of community and economic developments, compares the recent boom in Dearborn Heights to what Dearborn had experienced in the 90s, when a large Arab American population had established itself there. 

“Arab Americans are moving into the city in large numbers and are willing to pay more,” Amen said, adding that the houses are closer to mosques and close to an area families find highly selective. “The same thing is happening now in the north end of town that happened in Dearborn 15 years ago.” 

Amen cited a recent news report by the US Department of Housing and Urban Development, which states that home values across the country are increasing anywhere from 5 to 8 percent; but in “in cities like Dearborn Heights, home values are increasing as high as 30 percent.”

Dearborn Heights Councilman Tom Berry said that while officials have been open to establishing businesses in the city, it wouldn’t have been possible if the demand wasn’t there.

“I’ll tell you there is no doubt that had it not been for the influx of Arab businesses and population, I don’t think we would have gotten the increase in businesses and home values that we now have,” said Berry. “We are pro-business and we understand that people put their life earnings into it and we want to be a part of realizing a success for them.”

The correlation between the Arab American presence in the city and a higher demand for homes and businesses can be pointed out by comparing the city’s neighborhoods.

Greenland Plaza on Ford and Beech Daly.

The south end of Dearborn Heights, an area that borders Taylor along Telegraph Rd between Michigan Ave. and Van Born, still only has a small population of Arab American residents compared to the north side of the city. There, the business districts lack an Arab American presence and have pretty much remained the same, with very little to no recent developments.

While there are no actual figures available, Amen estimates that about 25 percent of the city’s population is of Arab descent. He said he also expects Iraqi Americans to start moving into the city’s south neighborhoods in coming years. 

Like Berry, Amen also said the demand for homes has spiraled into a demand for more businesses in the city’s northern end. The area located on Ford Road between Beech Daly and Inkster Road now includes several strip malls that house businesses ranging from corporations to small independently-owned operations.

“In the last three years we’ve had over 100 businesses open up in Dearborn Heights and many of them are Arab American entrepreneurs who are moving their business from somewhere else, going into business for the first time or expanding their business from another city,” Amen said.  

One example is the Lava Lounge, a hookah and restaurant spot located in a plaza that includes a Starbucks and Jimmy John’s. Since its grand opening last year, Lava Lounge has ushered in heavy traffic to the plaza. Due to high demand, the owners expanded to include an outdoor patio and have added 14 additional parking spots.

“Other owners have told us that we’ve enhanced business at the strip mall after we came in,” said Angela Jaafar, co-owner of Lava Lounge. “We really went above and beyond to invest and I believe it was the right investment to make, judging by the feedback that we’ve gotten from customers.”

The owners of Lava Lounge commend Dearborn Heights for being helpful in allowing them to establish their business. They said other cities have earned a reputation for making business owners jump through hoops.

“They have a much more business friendly atmosphere and they get straight to the point whereas other cities may give business owners more challenges,” Jaafar said. “The administration in the city has really been a pleasure to work with.”

Hussein Siblini, owner of Saj Cafe & Bakery on Ford Rd at Beech Daly, said his business is also attracting Arab Americans from Canton and Plymouth, who no longer have to drive down to Dearborn to get bakery items or halal meat. 

However, he expressed concern that once more entrepreneurs discover Dearborn Heights, the market might get oversaturated.

“When one person succeeds, everyone wants a piece of that pie. We don’t want three grocery stores next to three bakeries. We need to come up with new ideas and establish some new kinds of businesses,” Siblini said. 

City officials seem to already be aiming to avoid that problem. The city’s next move will be an attempt to establish a business district on Warren Ave., between Telegraph and Beech Daly. 

Papaya Fruit Market, currently located on Warren Ave. in east Dearborn, is slated to open a second location five miles west in Dearborn Heights. City officials have high hopes that the fruit market is going to be the beginning of a business boom in that area.

“I’m telling people now, that if you’re even thinking about opening a business in Dearborn Heights, you better start looking on Warren Ave. soon, because the prices will be going up,” Amen added. 

While the similarities in growth are striking, Amen noted that Dearborn Heights doesn’t have the same cushion as Dearborn, which relies on heavy industries like Ford Motor Company and the steel-mill factories to employ thousands of people. 

He adds that Arab American entrepreneurs may certainly be the answer to the city’s future, noting that H.Y.P.E Athletics, located on Warren Ave.,  is now the second largest employer in Dearborn Heights with over 200 employees. The largest employer remains the city itself.