Richard Hosey – Developing Companies, People, as Well as Projects

Kim Kisner
April 30, 2024
Business

The career of Richard Hosey, owner of Hosey Development LLC, has spanned development, consulting, financing, and asset management of more than 75 projects in Detroit totaling over $2.5 billion in development costs.

His most recent undertaking is the renovation of the former Fisher Body 21 plant, a $134 million project that will preserve and redevelop the plant into approximately 435 rental apartments; 38,000 square feet of commercial space; outdoor and indoor amenities; and up to 139 interior and 646 adjacent surface parking spaces. At least 20% of rental units will be affordable for those earning no more than 80% of the area median income ($51,200 or less for a two-person household).

SBN Detroit spoke to Hosey about his work and his impact on sustainability in Detroit.

Q: Tell us about Hosey Development.

A: I’ve been in real estate since 1996, and then I worked for Bank of America from 2005 to 2013 investing in urban development. That job brought me back to Detroit in 2008. I remember arguing with a city councilperson on why the Lafayette Building should not be torn down, and that it should be invested in and rehabbed. She said to me, ‘Would you do it?’ and I thought, yes, I need to stop complaining and start doing something. I started with the Kirby Center Lofts, which was an old Hebrew School in Midtown, and then it became a process after that.

Q: Talk about preserving affordable housing in Detroit and how you work to do this.

A: In 2008, the city was only building affordable housing, which created concentrated poverty.

On the other hand, as the market rate takes off, we need to ensure that it’s reasonably and rationally balanced so housing doesn’t become unaffordable. Revitalization tends to push out affordability, but the City of Detroit has an affordability requirement inside every project to ensure this doesn’t happen.

I love the work of the Detroit Land Bank. Affordable housing should not just be apartment living. With programs like Rehab and Ready, they are going into neighborhoods and driving change.

Q: You provide financing for your subcontractors. Can you tell us about that?

A: I focus on employing Detroiters. Detroit has plenty of construction talent, but there are not plenty of contractors with the capacity to carry a big job. There is an upfront economic load that comes with larger jobs, such as purchasing materials and paying for labor that many – most – construction companies in Detroit can’t shoulder.

For my first project – the Kirby Center – I started thinking what if I carry the job? I then met Mel Washington, a local developer who walked me through the process of doing so.

Now, my partner and I are using this same concept on the Fisher 21 project. We are using companies that have the skills and the organization to do a big job like this but can’t buy $1 million in HVAC equipment upfront and get paid later. So we do that part.

Fisher Exterior1 — FISHER 21 PROJECT EXTERIOR

It’s been great working this way. We get Detroit companies who do great work.

Q: How do you think sustainability plays into what you do?

A: As we build up the ecosystem such that our contractors in Detroit are getting the jobs, the economics go in a circle. Good-paying jobs mean the workers buy homes here, buy cars here, and spend their money here. That’s the ideal model.

For a lot of years, construction companies would come into the city, make their money, and go back to their homes in Oakland County or Macomb County. The key is to keep it in Detroit so the dollars stay in the community and circulate.

From an environmental standpoint, rehabbing a building versus tearing it down is much better for our planet. The challenge comes with being good to the tenant while being good to the planet. For example, we can put in huge beautiful windows, but how high is the electric bill going to be? We then need to find solutions for the most efficient furnace so the tenant isn’t impacted by a huge expense.

Q: The redevelopment of the Fisher plant is the largest Black-led development in the city. What is the importance of this?

A: I want this to become the everyday normal. So many processes focus on the idea that there is no talent or capacity in Detroit.

I hope to be able to show that larger projects can be handled by Black and Brown teams. We still have a long way to go. The Fisher project at $135 million is just 3% of the $5 billion in development announced in the last twelve months. But I hope to build a model for black funders and black talent to come together.

Q: What is the future of Hosey Development?

A: I will be in this market for the long run. I picture myself exclusively in Detroit except for one thing – mentoring new and existing developers. Again, I will feel more successful when more Black and Brown people and women are involved in development in the city.

And it’s happening. Many small and midlevel Black and Brown developers are coming into Detroit in ways you don’t see in other cities. Diverse developers are landing here because they can get a foothold. Preserving that should be a priority.

Removing barriers and growing talent based on ability as opposed to inherited wealth is one of the most important things we can provide in this market.

Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.

Kim Kisner

With over 25 years of experience in the development and execution of strategic branding, content planning, and copywriting for brands such as Gatorade, Ford Motor Company, and Under Armour, and published by SEEN Magazine, The Jewish News, and countless health and lifestyle journals and blogs, Kim helps companies, brands, and people tell their stories.

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Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.

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June 3, 2025 No Comments

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FRESH COAST CLIMATE SOLUTIONS WATER STEWARDSHIP

Guiding Michigan Businesses Toward Smarter Climate Action

May 27, 2025 No Comments

Fresh Coast Climate Solutions is a Michigan-based climate consultancy that aims to help organizations across sectors implement sustainable, equitable, and economically viable climate strategies. Founded on deep expertise in greenhouse gas inventories, carbon mitigation, ESG, water stewardship, and circular economy principles, the company provides technical support and strategic guidance to businesses and municipalities navigating the energy transition. Fresh Coast has partnered on projects ranging from municipal benchmarking in Flint to advanced battery development in collaboration with American Battery Solutions. SBN Detroit interviewed Jenny Oorbeck and Josh Brugeman, co-founders of Fresh Coast Climate Solutions, to discuss the company’s current priorities, lessons from its recent projects, and how small and mid-sized businesses can build effective climate strategies in a fast-changing policy and economic landscape. Q: What is the impetus behind Fresh Coast Climate Solutions? Oorbeck: We launched Fresh Coast three years ago with a sense of urgency. The climate crisis felt personal and immediate, and we wanted to take the reins into our own hands. From the beginning, we focused on building a company culture grounded in bold, transformative action. That means not being afraid to push boundaries, not say no to pilot projects, and work only with partners who share our ambition and urgency. Our goal has always been impact at scale, not incrementalism. Brugeman: We’re very deliberate about engaging in projects that move the needle. That includes deploying transformative technologies, piloting new programmatic approaches, and pursuing strategies that can meaningfully shift the trajectory of climate and sustainability efforts. We’re not interested in business-as-usual—we want to help organizations lead. Q: What are the most common climate-related challenges businesses in Southeast Michigan are facing right now? Oorbeck: We’re seeing a consistent challenge among small and mid-sized enterprises. Many are under pressure—from customers, employees, and supply chain partners—to demonstrate meaningful climate action. But they often lack the bandwidth, technical knowledge, or financial resources to respond effectively. New regulations, evolving standards, and growing stakeholder expectations can feel overwhelming. They need help making informed, strategic, decisions that advance both their sustainability and competitiveness. Brugeman: For many of these companies, sustainability is becoming a prerequisite for doing business, especially if they’re part of larger supply chains. Increasingly, their clients are demanding emissions data, decarbonization strategies, and ESG transparency. The risk is real: Suppliers that don’t adapt could lose out on future contracts. That’s why we emphasize not only environmental stewardship, but also economic competitiveness and operational resilience – things like reducing energy costs or preparing for power disruptions and extreme weather events. Q: Once businesses are ready to act, what barriers tend to prevent meaningful progress? Oorbeck: The most common barriers are capacity and resources. In smaller organizations, sustainability is often an added responsibility for someone already juggling multiple roles. Without a dedicated team or financial backing, the work can stall. That’s why our Michigan Climate Wise Business Program—funded by the Erb Family Foundation—focuses specifically on helping these under-resourced companies move forward. We provide access to expert guidance so they can prioritize and implement practical solutions. Brugeman: I’d also highlight two major gaps: technical expertise and access to capital. Many businesses know sustainability is important, but they don’t know where to start. That’s where engaging external experts can make a difference. We encourage companies to look for “no-regrets” projects—efforts that cut emissions, save money, improve efficiency, and position them for future success. Q: Are there misconceptions you regularly encounter when it comes to emissions, ESG, or water stewardship? Brugeman: One of the biggest misconceptions is around timelines. Many leaders focus solely on short-term paybacks, but climate action is a long game. Sustainability isn’t just a “nice to have”—in larger organizations, it’s already embedded into operations, tied to financial incentives, and closely monitored at the executive level. Smaller companies don’t always realize how deeply integrated these issues have become, and that disconnect can be costly. Oorbeck: Agreed. Another misconception is that the pressure to act will fade, or that a few small gestures are enough. The reality is that some companies risk being dropped as suppliers if they can’t demonstrate credible sustainability progress. We need to move the conversation beyond quarterly goals and toward long-term impact. This is the defining business challenge of our time. Q: How does Michigan’s regional identity shape the way companies need to approach sustainability? Brugeman: Michigan has a unique responsibility and opportunity. We sit at the center of the largest freshwater system on the planet—yet we undervalue and underprotect this critical resource. Water stewardship should be a defining focus for our region. We also have deep roots in heavy manufacturing, which has been the economic backbone of the state. As the global economy shifts toward decarbonization, Michigan is positioned to lead—but only if we commit to building a cleaner, more sustainable industrial base. We’ve excelled at making things. Now we need to excel at making them responsibly. Q: You’ve worked with municipal governments on decarbonization strategies. What can businesses learn from those efforts? Oorbeck: I started my career in the public sector, and at times cities have led the way in sustainability, especially when support at the state or federal level has wavered. Cities began developing climate action plans more than two decades ago. Businesses can learn from those experiences: how to build internal teams, engage stakeholders, and set meaningful targets. At the same time, municipalities can learn from the agility of the private sector, especially in deploying solutions quickly. Brugeman: One thing the public sector does well is plan for the long term. That mindset is essential for climate action. Conversely, the private sector often moves faster and embraces innovation more readily. If each sector borrows from the other, we can accelerate progress. Q: What recent projects are you especially proud of and what lessons might they offer to other Michigan businesses? Brugeman: One is our Michigan Climate Wise Business Program. In partnership with Centrepolis Accelerator and supported by the Erb Family Foundation, we provide sustainability and climate services to small and mid-sized businesses that lack the internal capacity to