Scrutinized piece of Dearborn land goes back to city after lawsuit

DEARBORN, MIch. (WJBK) - An investigation exposed a questionable land deal and a cozy relationship between a developer and the Dearborn mayor.

And on Thursday the fate of a valuable piece of downtown property entangled in local politics - and a lawsuit - has finally been decided.

"Our people here identify that he was by the book and did everything right," Mayor Jack O’Reilly said in a previous interview. But mayoral challenger and Councilman Tom Tafelski said he believed the public trust was violated. 

Hanging in the balance was the former Brothers Tuxedo site at Michigan Avenue and Howard. It has been in limbo since O'Reilly's family friend Hassan Saab, was chosen to develop it in 2015.

Six months later, Hassan Saab spent $2,200 on a used car for O'Reilly's son. O'Reilly paid him $2000 and later said he didn't realize Saab gave him a discount.

Mayor O'Reilly said he didn't give him any favors while Saab said he would build a Noodles & Company on the site, but nothing happened.

MORE: Dearborn mayor regrets deal, challenger claims smear campaign

Then Saab's partner sued him. Dearborn got dragged into the lawsuit trying to get the land back.  O'Reilly defended the city officials' decision to give him the deal in the first place.

The lawsuit was settled Wednesday. Mayor O'Reilly wasn't available to discuss the agreement Thursday evening and city officials wouldn't provide answers to questions. But Dearborn will get the land back and $80,000.

But under the terms of the original deal, Dearborn should have gotten the land back and $130,000, because the developers failed to deliver.

It is unclear whether those men will get any of the money.