Sheetz Faces Unfair Blockages in Michigan

Twenty years ago, as a broke college kid, my first date with my now-wife was to a Sheetz. Yes ― the gas station/convenience store/made-to-order food stop. We shared a burger, fries and a drink (it was $4).

If we had been in metro Detroit today, the date might never have happened. At least it if were up to a few vocal residents in Livonia and Farmington Hills.

Sheetz, the popular gas station chain, sells made to order food, like burgers, sandwiches, milkshakes and coffee. The chain started in Pennsylvania and has begun expanding across the country ― and is now planning to open 50 to 60 stores in Michigan.

But nowadays, it seems nobody can build or expand without a fuss from a few people with too much time on their hands. Some locals ― and sometimes businesses who don’t want new competition ― are using government power to prevent new stores, restaurants, shops and homes.  

Sometimes, the complaints are legitimate. Cities should think about public health and safety. They do need to evaluate plumbing, drainage, electricity and traffic. But, way too often, that is just an excuse to block a business or housing that people in the community want or need. If there were no market, the new facility wouldn’t be considering the area.

Bring on the competition

In Farmington Hills, Sheetz was blocked by the city council. The main reasons stated by residents were that the store would be open 24/7, and that it “abuts” a residential neighborhood. In the meantime, the same intersection already has two gas stations, a Planet Fitness, CVS, a pizza place, coffee shop, grocery store and more. 

In Livonia, complaints were raised about traffic, noise and pollution. This Sheetz would replace a Rite Aid ― how much more could it add to what has been there for years? Some residents were more explicit: "We noticed that it’s cannibalizing from existing gas station owners," said one.  

Whether it’s gas stations, grocery stores, medical facilities or housing development ― it isn’t the job of government to prevent competition, but rather to foster it. But, increasingly, policymakers in Michigan aren’t doing that, and it’s a major reason why prices get higher and services get worse.  

As research from the think tank I work for shows, it’s everywhere. Local zoning rules delaying or blocking apartment buildings. Cities making duplexes and fourplexes illegal almost everywhere. “Certificate of Need” laws preventing health care facilities. Special use permits blocking dollar stores. Labor and environmental policy stopping high-speed internet broadband projects.

Build, baby, build

The bad results from these unnecessary regulations show up mostly prominently in housing costs. Labor force and material prices are a big deal, but that affects every builder fairly equally. But government regulations are significant, adding nearly 25% of the total cost to every home or apartment building.  

And that’s not even considering whether builders can build at all. Local zoning rules are blocking, limiting or severely delaying what can be built and where. Michigan simply isn’t building enough ― the number of housing permits has flatlined, with fewer than half the housing being built that we were building in the 1990s.

Metro Detroit has an affordability problem as well. No surprise, considering its land-use rules are some of the strictest in the nation. Cities and counties should get on board and let builders build. And state lawmakers should help by limiting zoning and regulatory rules to focus on only important safety issues, not a be-all-end-all stopping or delaying of industry people need.  

From housing to commercial development, some businesses and a lot of local busybodies are using government power to block out new enterprise. Lawmakers should no longer go along with it.

Who knows ― maybe it will even help others get a first date.