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Dearborn firm sues Ypsilanti Township, alleges bias in favor of Sheetz
By Candice Williams and Myesha Johnson, The Detroit News
A Dearborn-based company has filed a federal civil rights lawsuit against Ypsilanti Township, claiming that township officials discriminated against its Muslim owners by denying their plans to build a gas station while approving a similar project nearby for Sheetz.
In the lawsuit filed Tuesday in U.S. District Court for the Eastern District of Michigan, Hewitt Property, LLC, alleges that Ypsilanti Township blocked its efforts to construct a gas station and convenience store at the corner of Ellsworth and South Hewitt roads, despite the project meeting zoning requirements.
Hewitt Property alleges that Ypsilanti Township officials engaged in discriminatory practices and deprived them of equal protection of the laws and subjected them to “disparate treatment” in their application to develop a gas station/convenience store compared to a similarly situated applicant.
“The Township treated Sheetz more favorably than it did Hewitt,” the complaint says. “The Township’s actions in blocking and preventing Hewitt from developing the subject property were unwarranted and wrongful and part of a municipal policy to wrongfully harass Hewitt because its principals were of Arabic Middle Eastern descent and are Muslim and are members of a protected class.”
Township officials did not respond Wednesday to a request for comment.
The complaint does not include Sheetz as a defendant. A company spokesperson did not respond to a request for comment.
Hewitt Property seeks compensatory and other damages, lost profits, interest, costs and attorney fees, along with preliminary and permanent injunctive relief. The company also demand a jury trial.
Hewitt Property, owned by Jay Hammoud and Khadije Chaalan, purchased property zoned B-3, General Business, which permits gas stations with a special land use permit, based on assurances from an Ypsilanti Township planner, according to the suit.
Despite initial positive interactions and conforming site plans, the township planning department’s review in March 2024 applied the master plan’s “Neighborhood Transition District” standards, which do not permit gas stations, instead of the current B-3 zoning, the complaint says.
The Planning Commission denied Hewitt’s Special Conditional Use application, citing non-conformance with the Master Plan’s future land use designation, perceived hazardous road conditions, and increased safety requirements, the lawsuit states.
Hewitt claims that a nearly identical project by Sheetz, close to the subject property and also designated “Neighborhood Transition District” in the Master Plan, was processed swiftly and approved by the Planning Commission despite similar or worse conditions regarding traffic and proximity to residential areas.
“Unlike how the Township treated Hewitt, the Planning Commission did not determine that the Sheetz project was not harmonious with the existing character because the areas surrounding the proposed location are residential, and would negatively impact those living next to such an intense use,” the lawsuit reads.
Hewitt argues Sheetz’s application was not subjected to the same scrutiny or reasons for denial that were applied to Hewitt’s, and public comment was disallowed during Sheetz’s approval meeting.
Sheetz has faced opposition in some Metro Detroit communities to its expansion into the region, which began with the opening of its first Michigan location a year ago in Romulus. Critics have cited concerns about traffic, impacts on nearby residential neighborhoods, and worries that smaller, independent gas stations could be forced out of business.
In Eastpointe, businessmen Jay Hammoud and Majid Hammoud sued the city in February, alleging officials discriminated against them by rejecting their planned gas station and then approving a similar project from Sheetz.
