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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Redesigning Marine Propellers with the Environment in Mind

January 14, 2025 No Comments

Sharrow Marine, headquartered in St. Clair Shores, Michigan, is focused on marine propulsion technology. In 2024, the company’s Sharrow Propeller™ was recognized as a finalist in Fast Company’s Best World Changing Ideas North America award category. The awards honor businesses and organizations that are developing creative solutions for “the most pressing issues of our time.” SBND recently interviewed Greg Sharrow, CEO and inventor of the Sharrow Propeller, about the company’s technology and its impact on the environment and the marine industry. Q: Tell us about Sharrow Marine and your propellers. A: Sharrow Marine designs and manufactures propeller technology. Our propeller – recognized as the first major advancement in propeller design since the 1830s – eliminates the traditional propeller tip vortices, which are a major source of energy loss. 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January 7, 2025 No Comments

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December 17, 2024 No Comments

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Safe Water Engineering – Tackling Water Safety in Southeast Michigan

December 10, 2024 No Comments

Southeast Michigan faces significant challenges in water infrastructure and safety, particularly in addressing aging systems, lead contamination, and ensuring equitable access to clean drinking water. Safe Water Engineering LLC, a Detroit-based consulting firm founded by Elin Warn Betanzo, focuses on improving access to safe drinking water through engineering and policy solutions. As the architect behind Detroit’s lead service line replacement program, Betanzo has played a key role in improving water safety in the region. The city has replaced over 11,000 lead service lines since 2018, providing safer drinking water to thousands of residents. Beyond infrastructure, Betanzo’s work also focuses on water safety and affordability policies. 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Beacon Manufacturing – Supporting LEV Innovation at Newlab

December 3, 2024 No Comments

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Technology-Driven Air Quality Monitoring Gains Traction in Detroit

November 26, 2024 No Comments

JustAir, a Detroit-based startup cofounded by Darren Riley leverages data and technology to provide hyperlocal air quality insights, largely in urban areas. By deploying a network of air monitors, JustAir delivers real-time data that communities, policymakers, and environmental justice groups can use to push for meaningful action. With funding from initiatives that include Google for Startups Black Founders Fund, the company is building systems that aim to transform how cities like Detroit manage air quality challenges. SBN Detroit interviewed Riley to learn about the broader implications of air quality monitoring, the challenges of implementing these systems, and how accessible data can drive public health improvements and policy changes. Q: Why is air quality monitoring critical in urban environments like Detroit? A: Detroit has a history of industrial pollution and high traffic volumes, especially in areas like Southwest Detroit, where I live. These factors contribute to some of the worst asthma rates in the country. Traditionally, air quality data has been collected on a regional level, offering only a broad overview. But air pollution isn’t uniform across a city – it can vary dramatically from one block to the next. Localized data helps us understand where the worst impacts are happening, who is most affected, and when conditions are at their worst. This kind of granular information is essential for designing targeted interventions going forward. Q: How does air quality monitoring technology work? A: Traditional air monitoring relies on a handful of monitors spread across a large area, often providing limited insights. Our software facilitates and integrates multiple air monitors within a single area, sometimes scaling up to 50 or 75 units. These monitors collect data in real time, creating a detailed picture of air quality at a hyperlocal level. We don’t manufacture the monitors ourselves – we work with partners to deploy them. Our software acts as the brain, aggregating data and managing the network. The idea is to provide actionable insights that can help residents, and, also down the road, policymakers and stakeholders in cities like Detroit better understand their air quality challenges and begin to determine how to better manage them. Q: What is an example of your work in Southeast Michigan? A: We have a three-year contract with Wayne County, which, before this partnership, had just seven or eight monitors managed by EGLE (Michigan Department of Environment, Great Lakes, and Energy). We added 100 monitors across the county so now every community has at least one monitor. Residents can sign up to get alerts – they can subscribe to individual monitors in their area or around a particular school or place of worship, etc. They can set when they want to receive alerts. This is a customizable service and it’s free – anyone can visit JustAir.app/signup right now and sign up to receive those alerts. The county Department of Health Human & Veterans Services is our lead partner on this project and they’re diving into the data to better understand the air across the community. They’ll be able to use this information to improve the health, safety, and well-being of county residents. Q: What unique challenges do urban environments like Detroit face in addressing air quality? A: Urban air quality is influenced by a combination of mobile sources – like cars and trucks – and stationary sources, such as factories. Detroit’s high traffic volume, especially near international border crossings, adds to the problem. Wind patterns also play a role; on certain days, pollution can settle in specific neighborhoods, exacerbating the issue. Q: How does technology, particularly AI, help address these challenges, and what opportunities do you see for the future? A: Currently, we leverage AI to ensure the validity and accuracy of our data. This is crucial for providing communities with reliable information. We’re now moving into the next phase, where we aim to use AI to recommend actionable solutions for mitigating air quality issues. AI allows us to dig deeper into the root causes of pollution. It helps us analyze data patterns—such as specific pollutants, weather conditions, and wind patterns—to pinpoint sources of air pollution with greater confidence. By marrying environmental context with real-time data, we can provide more accurate insights. Looking ahead, the goal is to utilize these rich data sets to empower communities and policymakers to take informed action. We’re on the cusp of this now. Q: What are the challenges of deploying and maintaining air quality monitors in urban environments? A: Deployment involves hurdles like site selection, insurance, and technical logistics. Maintenance can be another challenge – we need to ensure data accuracy at all times. Our software includes an automated quality assurance system to detect and flag issues, ensuring the community gets reliable information. Q: JustAir recently received funding from Google. How will this investment be used? A: We’re one of ten companies nationwide to receive this funding, which is a great validator for us. Google conducted thorough technical due diligence, confirming that our technology is on the right track. We’re using the funding to enhance our AI capabilities, particularly in integrating contextual data with air quality metrics as I spoke about. The funding allows us to explore new solutions that can help inform and enforce public health policies. Q: How do you measure the success of your air quality monitoring initiatives? A: We have both short- and long-term metrics. In the short term, we focus on network reliability and user engagement—how often people access the data and whether they find it valuable. High engagement is a strong indicator that the information is meeting community needs. In the long term, we aim to measure health outcomes and policy impacts. For example, are asthma-related emergency visits declining in neighborhoods with high air quality awareness? Are cities using our data to implement more effective policies? Q: What does the future look like for JustAir? A: We’ve scaled significantly since launching three years ago, now partnering with 20 organizations across seven states. The future is about leveraging these networks to drive outcomes — working