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.

More From SBN Detroit

Ecosphere Organics on Advancing Sustainable Biorefining

November 12, 2024 No Comments

Ecosphere Organics, cofounded by Brittanie Dabney, is focused on innovating within the sustainable biorefining industry. By leveraging advanced technologies, including artificial intelligence, the company aims to address critical challenges in resource recovery and material processing. The goal is to simplify the biorefining process, enabling companies to focus on developing sustainable end products rather than managing complex material recovery operations. Ecosphere is finalizing logistics and has run pilot programs, working toward launching with clients. SBN Detroit interviewed Dabney to learn more about the mission and technology behind Ecosphere Organics, the challenges it faces, and the opportunities she sees within the industry. Q: What is the driving force behind Ecosphere Organics, and what key problems does it aim to address? A: Our driving force is the urgent need to reduce the environmental impact of food and organic waste. Our goal is to help companies transition toward sustainable production practices by diverting valuable food waste from landfills and giving it a new purpose. Today, food waste is often simply discarded or composted, but there are many untapped opportunities to extract value from it. By refining food waste into components that can be used in industries like textiles, packaging, and bio-based chemicals, we can give companies the tools to be more sustainable while contributing to a circular economy. Q: What do these applications look like? A: Today, we focus primarily on pre-consumer waste, meaning clean food waste from sources like restaurant kitchens. This includes citrus peels, eggshells, coffee grounds—essentially, anything that hasn’t been contaminated by being on someone’s plate. By working with clean streams of waste, we can efficiently sort and sterilize the materials, which makes them ideal for biorefining. Take banana peels, for example. We can extract natural pigments from these peels, which can be used as dyes in the textile industry. Fibers from the banana stems can serve as fillers to reduce plastic content in consumer goods, and food-based fibers are also being explored as eco-friendly options in packaging. Right now, we’re focusing on converting food waste into powders that can be further refined for green chemicals, substrates for fermentation processes, or even bio-based fertilizers. Our approach is about seeing the full lifecycle of organic waste and giving it renewed purpose. Q: What work have you done to date? A: We officially launched in March 2024, and our early work has been focused on refining recipes for our material blends, bioplastics, and processes to scale. Right now, we’re working on logistics – figuring out how to streamline the collection of food waste suitable for urban areas, how to efficiently transport it to our location, and how to make it as easy as possible for food suppliers to collaborate with us. To that end we will be participating in a pilot program with Orange Sparkle Ball and Intermode, where there will be an autonomous robot to collect waste in Corktown and transport it to Ecosphere. By reducing reliance on diesel fuel trucks, this approach lowers emissions and makes the entire lifecycle of our raw materials more sustainable and cost-effective. Collecting waste locally not only supports a more efficient supply chain but also allows more businesses to join the bioeconomy in a sustainable way. Q: How do you leverage AI and how does this technology optimize the process? A: The biggest opportunity lies in scalability and efficiency. Advanced technology and AI will allow us to optimize everything from waste collection and processing to customized material selection. With these tools, we can better predict waste volumes, design adaptable systems, and improve the quality of the materials produced. AI in biorefining enables smarter, more sustainable processes that can be replicated across various regions and industries, supporting a broader shift toward a circular economy. AI also plays a role in educating companies. We can recommend specific applications for raw materials, such as high-quality pigments, bio-based fertilizers, or even bioplastics. AI will help predict material demand and recovery rates, which allows us to guide companies toward the best ways to integrate sustainable materials into their products. Our platform will also serve as a resource for companies involved in R&D or prototyping, providing valuable data on material properties and potential applications. Q: What are some of the biggest technological challenges you face? A: One major challenge is creating processing systems flexible enough to handle diverse organic waste streams. For example, different types of citrus peels—like oranges, lemons, and limes—often need to be manually separated before continuing the refining process. Designing a system that can automatically adjust to these varying feedstocks is complex, but we’re actively working on solutions. Another challenge is the inherent variability in organic waste itself. Restaurants source ingredients from different locations, resulting in diverse nutrient profiles. Designing systems that can consistently process this range of materials while maintaining the quality of the end product is a technical hurdle. Finally, ensuring the quality of our end materials is crucial. Integrating data into our platform to monitor and adapt our systems will be essential to maintaining the high standard we are aiming for across all processing operations. Q: Are there specific partnerships or collaborations in Southeast Michigan that you’re working on? A: We’ve built partnerships with local restaurants, food service providers, urban farms and composters such as Sanctuary Farms. We also collaborate with other tech providers like Orange Sparkle Ball for waste collection solutions. Additionally, we’ve partnered with educational institutions and nonprofits like Make Food Not Waste, Black Tech Saturdays, Wayne State University, and the College for Creative Studies. For example, during Detroit’s Month of Design, we hosted “Waste to Wonder,” a community-centered and educational event where artists used pigments derived from food waste to create art. We’re also hoping to work more closely with the City of Detroit and other municipalities, with the goal of integrating our biorefining systems into broader sustainability strategies. Q: What obstacles do companies face in adopting sustainable biorefining, and how do you help overcome them? A: One major obstacle is the perception that sustainable practices are prohibitively expensive or difficult to

Restoring Detroit’s Tree Canopy

November 6, 2024 No Comments

Detroit was once known as the “city of trees,” but disease, invasive insects, and budget cuts over time have decimated our area’s distinctive tree canopy. But efforts are underway to replenish trees while also providing job training, green spaces, education, and community engagement. On Oct. 31, 2024, Sustainable Business Network Detroit hosted an informative discussion sponsored by the Fred and Barbara Erb Family Foundation regarding these efforts and how restoring tree canopy benefits individuals, neighborhoods, businesses, and the economy. The panelists were: Lionel Bradford, president and executive director, Greening of Detroit, a nonprofit focused on enhancing the quality of life for Detroiters by planting trees, providing job training, and involving youth in the education of the natural environment. It involves Detroiters in the process through community engagement, green spaces, education, and jobs. Maureen Donohue Krauss, president and CEO, Detroit Regional Partnership. DRP works to serve as a single point of contact for information, connection to services, incentives, and data for businesses who want to locate or expand in the 11-county Southeast Michigan Region. Robert Riney, president and CEO, Henry Ford Health, and leader of HFH’s $4 billion Destination: Grand initiative. The project includes a $2.2 billion expansion of HFH’s Detroit campus anchored by a new state-of-the-art hospital facility that will span 1.2 million square feet. It includes a 20-story patient tower, with three floors dedicated to providing intensive inpatient physical medicine and rehabilitation in partnership with the Shirley Ryan AbilityLab and its own Central Energy Hub, making it one of the largest fully electric-capable hospitals in the country. The event was moderated by Terry Barclay, president and CEO of Inforum, and chair of SBN Detroit. Some of the takeaways: The case for tree canopy Lionel: Growing up in Southeast Louisiana – which is very hot – you quickly learn the value of a tree. It’s also a sportsman’s paradise – We did a lot of hunting, fishing, and camping, and I developed a great appreciation for the environment and its value. I also love people. The work that we do is about people at the end of the day, so when we do this work it’s to build community and neighborhoods. We try our very best – changing landscapes and lives is our motto. When someone has been incarcerated for 20 years and needs a second chance, they can come through your program – the Detroit Conservation Corps – and they can be trained and support their families. You can train people to put trees in the ground and maintain them. Maureen: Part of my role is to inform people that economic development is more than just a new factory in your town, more than just a tax abatement. It’s creating an environment that both people and companies want to be in. Sixty percent of our projects are from international companies – when people come here for the first time, they have expectations of what a first-class city looks like… Think about Paris and its phenomenal tree canopies. People want that here. I did a little research before this event: Homes with trees sell two days faster and for 15% more than homes without. Tree value increases with age – the cost of trees has 100% payback. Three properly placed trees can reduce air conditioning by 56% and reduce home heating bills by 10% by serving as a windbreak. Bob: You may think what does a healthcare system have to do with tree canopies? HFH is absolutely committed to increasing the health of communities – the role that hospitals and doctors play is about 20%. We don’t underestimate the power of that 20%, but true health – meaning how long people will live and have a high-value life – is a partnership of healthcare, policy, and environmental factors – which are huge. You may have seen that the biggest determinant of your health is the ZIP Code that you live in. You need to have fabulous healthcare, access to it, economic security, environmental security, and food and nutrition security. At HFH we need to be a population health company – we pick and choose how we should make our mark and one of the things we believe in is the power of the tree. We have to walk the talk. The economic benefits of tree canopy Maureen: Our organization has three pillars: market, grow, and support. It’s so much better now. People are curious to hear about Detroit and see what’s happening. Talent is No. 1 – we have the second-highest amount of engineers in the country and have experienced manufacturing talent. As one of my teammates says, it’s workforce, weather, and water. When you talk about climate change, Michigan will be in the top five least affected. The right amount of tree canopy and how trees are sourced Lionel: American Forests did a study and determined that a city the size of Detroit should be at 40%. Right now we’re at 26%. We lose about 2,000 trees a year, so those have to be taken into account. We get most of our trees from New York and Indiana and, more recently, Wholesale Tree Inc. in Northern Michigan. More importantly, we’re growing our own trees now – running the Walter Meyers Nursery in Rouge Park, which is owned by the city. We’re very intentional about turning into a full-fledged operational business. Last year, we harvested our first set of trees. We have lost a lot of trees over time, and the reason we have lost a lot of those is because the city lacked the resources, and dead trees were not removed and were taken down by storms. This administration has done a great job by taking trees down when dead and dying. Working with DTE has been quite thrilling – they have given financial support to planting trees but also to making sure that the next generation of environmental stewards are trained by supporting our Green Corps summer programs and also the tree

THRIVE Collaborative’s Approach to Sustainable Development

November 6, 2024 No Comments

THRIVE Collaborative is an Ann Arbor-based real estate development, design, building, and consulting firm dedicated to creating life-enhancing, grid-interactive buildings that harvest their own energy and water, create zero waste, and are beautiful and restorative. Its current project – Veridian at County Farm in Ann Arbor – is a 100% electric development, powered by solar with no gas lines or combustion appliances. It is targeted to be one of the nation’s first mixed-income net zero energy communities. SBN Detroit interviewed Matt Grocoff, THRIVE Collaborative founder and lead on the Veridian project, to find out more. Q: How do you approach creating buildings that harvest their energy and water and create zero waste, and how long have you been doing this work? A: Thrive Collaborative approaches sustainable development by aiming to create buildings and communities that align with what is necessary for the future. Our flagship project, Veridian, is a model for addressing pressing climate challenges. When we started Veridian in 2016, we were guided by the goals of the Paris Agreement, which sets a target of keeping global temperature increases below 1.5 degrees Celsius. This means eliminating fossil fuels and using only renewable energy to power buildings. I see Veridian as an act of optimism. It is a 100% all-electric community, with no gas or fossil fuels. It’s powered entirely by on-site renewable energy, including solar panels, battery storage, and geothermal systems. Every home in the development produces more energy than it consumes, ensuring it is not only sustainable but capable of energy storage for future use. The idea is to show that what we need to do for the planet can also create a beautiful and socially just way of living. Q: In your experience, what are the biggest challenges in integrating sustainable practices into real estate development in Southeast Michigan? A: One of the biggest challenges we face is that there is no existing template for what we are trying to accomplish. The science of sustainability is clear, but the regulatory framework, building codes, and conventional construction practices in the U.S. don’t match what we are trying to achieve. Veridian uses a specific permeable road surface called Ecoraster. This is an eco-friendly, flexible, porous paver made from 10% post-consumer and post-industrial recycled plastics. However, the material was initially rejected by the city. We had to prove it met the necessary standards, which took nine months to do. This is one of dozens – maybe hundreds of examples of outdated building codes and policies that just don’t align to support the materials and practices we are employing. There are also challenges related to training contractors and tradespeople in new, sustainable methods. Q: How have you navigated these challenges? A: The key is to approach it knowing that sustainable development is both necessary and possible. There are always people who say, “That’s not how construction is done,” but that resistance creates an opportunity for innovation. Q: What role does Veridian play in the broader sustainability movement in Southeast Michigan, and what are your long-term goals for this project? A: At a micro level, Veridian Farms is about creating a model neighborhood that implements the necessary solutions for sustainability. The project serves as a case study for what’s possible when we fully embrace renewable energy, energy efficiency, and zero-waste practices. At a macro level, the goal is to demonstrate that these methods can and should be replicated across Southeast Michigan and beyond. The science is telling us that we need to cut global carbon emissions in half by 2030 to prevent the worst impacts of climate change. By showing that this level of sustainability is possible today, we hope to inspire policymakers, developers, and financial systems to support and scale these efforts. Q: What are the economic implications of building sustainable communities like Veridian? A: There’s often a misconception that building sustainably is prohibitively expensive, but that’s not the case when you take a holistic view. While technologies like geothermal heating and certain types of appliances might cost more upfront, they pay off over time. Solar panels, for example, lock in energy costs for 30 years, which is far more economical than relying on fossil fuels, whose prices fluctuate. When we look at costs holistically — factoring in the environmental impact of conventional practices — sustainable building becomes the more affordable option. We must rethink what “cost” means, not just in terms of the price of materials but in terms of the long-term health of the planet and the people who live in these homes. Q: What is the timeline for Veridian? A: We proposed the project in 2016. It took a couple of years to get approved. We are almost to year nine and we have our first residents living there now. The renewable energy systems are up and running and every home is producing more energy than it uses. Homes are heated and cooled with energy provided by the sun. Instead of storm drains, we have bioswales and butterfly gardens and birds and plants. We engineer using plants and pipes, but we use natural systems to operate more elegantly than the conventional expensive, and unsustainable storm drain systems. By the end of the year, we’ll have all residents moved into our first sequence, which is 21 single-family homes. By early next year, we’ll have another ten two-bedroom lofts occupied. Q: What are some of the lessons you’ve learned from past projects that are helping guide future developments? A: All innovative projects are learning opportunities. One major lesson is the need for a significant shift in the American construction industry. Compared to Europe, where sustainable building practices are more advanced and efficient, the U.S. lags in terms of both financial structure and the materials used. We also need to address the utter lack of diversity in the trades—something Europe has done more effectively. We’ve also learned that collaboration is critical. Whether it’s working with local governments to navigate building codes or partnering with vendors to source sustainable materials, the

Tackling Water Infrastructure and Coastal Challenges in Michigan

October 29, 2024 No Comments

Ann Arbor-based CIS was founded in 2013 by Corvias, a Rhode Island-based company that provides infrastructure services to the military, state and local governments, and higher education. In 2023, it was spun off as an independent company whose services center on solving the complicated challenges of outdated and ineffective stormwater infrastructure. SBN Detroit interviewed the company’s CEO, Sanjiv K. Sinha, Ph.D., and Sri Vedachalam, Ph.D., Senior Director of Water Equity and Climate Resilience, about two recent projects – an advisory and research project focused on coastal conservation for The Nature Conservancy, a global conservation nonprofit, and an analysis of Great Lakes Regional Poll (GLRP) data for a binational federal agency. Q: What were the primary goals of the coastal conservation analysis services you provided for The Nature Conservancy? Vedachalam: The main goal of this project was to conduct a comprehensive scoping exercise to identify and understand the key challenges faced by Great Lakes communities in relation to fluctuating water levels, high-energy waves, and climate-induced shoreline erosion. Shoreline erosion in particular is becoming increasingly prevalent due to climate change, and our focus was to assess how these environmental stressors impact both the natural and built environments. By gaining a clearer understanding of these challenges, our goal is to help surrounding communities become more resilient. This involves preparing infrastructure to withstand the ongoing and future effects of these changes. Q: What are the key environmental challenges currently affecting coastal areas in Southeast Michigan and the broader Great Lakes region? Vedachalam: Coastal areas in the Great Lakes region face a variety of interconnected challenges, mainly involving three key components: the lake itself, the shoreline, and the watershed. Rising and fluctuating water levels, coupled with stronger energy waves, contribute to significant shoreline erosion. These forces can disturb lakebed sediments, which, in turn, impact aquatic organisms and their habitats. In addition, increased rainfall—often intense and unpredictable—introduces higher levels of pollutants and contaminants into the lakes, further exacerbating environmental stress. The watershed is also heavily affected by these factors, particularly in terms of increased flooding, which places additional strain on both natural ecosystems and human infrastructure. Addressing these challenges requires a multifaceted approach that combines both natural and engineered infrastructure to mitigate damage and enhance community resilience. Sinha: To add some context, climate change is causing regions around the Great Lakes to experience more rainfall in shorter periods of time, leading to severe issues such as flooding and water quality challenges such as algal bloom in western Lake Erie. The frequency and intensity of these rain events are increasing, which complicates regional water management. As an example of changed rainfall, based on 1992 estimates, a hundred-year storm in Detroit used to be 4.4 inches of rainfall, while in 2019, a similar storm produced 5.2 inches—an additional two billion gallons of water. According to SEMCOG, by 2050, storms of this nature could result in 7.7 inches of rainfall, adding another six billion gallons of water. Preparing communities and infrastructure for such occurrences is essential as we look toward the future. And these massive challenges present an incredible opportunity for the region to grow its economy by deploying capital that leads to local jobs. Q: Based on this project, what specific actions or solutions is CIS proposing to protect Great Lakes coastal communities? Vedachalam: It will take a balanced approach that integrates both hard infrastructure and nature-based solutions to address the complex challenges these coastal communities face. One focus is wetlands, which historically covered vast areas across the Great Lakes region. Over time, urbanization has led to the loss of many of these wetlands, reducing their ability to naturally manage stormwater. So, we need to design infrastructure to help slow down stormwater runoff before it reenters the lakes. Additionally, we need to stabilize dunes and other natural barriers, which play a critical role in protecting the shoreline from erosion and the impacts of fluctuating water levels. These natural elements act as a first line of defense, mitigating the force of incoming water while preserving ecosystems. Another critical area of focus is people. It’s crucial to involve residents in these efforts to ensure that the solutions we propose are compatible with how people live and interact with these spaces. Through collaborative efforts with the community, we can foster a sense of ownership and ensure that the projects we implement meet both environmental and societal needs. Q: What unique opportunities or risks does Southeast Michigan face regarding water management and coastal resilience compared to other areas of the Great Lakes? Vedachalam: Southeast Michigan presents a unique mix of challenges. Historically, this region was rich in biodiversity, with vast expanses of marshes and wetlands serving as natural buffers against flooding and erosion. However, as the area became more urbanized and industrialized, many of these natural systems were altered or lost. Despite this, there remains a kind of “ecosystem memory,” where there is potential to restore these natural practices and processes in some areas. One of the main challenges the region faces is balancing the needs of a highly industrialized and sprawling urban environment with the goal of restoring natural systems. Legacy pollution from past industrial activities continues to pose a risk. There is growing interest from communities to return to more sustainable, nature-based solutions. Q: To this end, what is the importance of polling data in understanding public sentiment on Great Lakes water issues? Vedachalam: Polling data is critical because it allows us to measure public sentiment at a specific point in time and over time. Public sentiment can be dynamic, especially following significant events, much like we see in political polling. Attitudes often shift slowly over time, so conducting annual polls helps track these changes and offers insights into how public perceptions and concerns evolve. Sinha: The Great Lakes represent a highly complex system, involving eight U.S. states and two Canadian provinces. This vast geographic area makes it essential to carefully assess how public sentiment varies across the region. Polling helps identify which stakeholders hold specific concerns and how

Scrap Soils: Innovating with a Robotic Food Waste Collection Pilot Program

October 22, 2024 No Comments

Scrap Soils is a Detroit-based nonprofit composting organization, focused on diverting food waste from landfills and transforming it into nutrient-rich compost. Scrap Soils partners with entities like Sanctuary Farms to promote sustainable food waste recovery, helping businesses and residents meet zero-waste goals. Its mission is to divert food waste from landfills, thus reducing greenhouse gas emissions and creating a sustainable local food cycle through composting. In 2023, Scrap Soils piloted a robot program in the Transportation Innovation Zone with support from the city’s Office of Mobility Innovation. The program used an autonomous robot for food waste collection to explore more sustainable and efficient ways of managing and transporting waste. SBN Detroit talked to Scrap Soils co-founder Ricky Blanding about the pilot program, and composting in Detroit. Q: How did you develop the idea for Scrap Soils? What was the driving force behind it? A: I was working at the Whitney and also developing a deep interest in gardening. I began to recognize the immense value of composting in improving soil quality. At the same time, I noticed a significant issue with food waste — there was a clear gap between the waste generated and how it could be utilized productively. So the concept of Scrap Soils emerged from this realization. Composting can serve as a key tool in addressing food waste, turning it into something beneficial for the environment, businesses, and communities alike. Q: In what ways does composting help businesses and the community meet their zero-waste goals? A: Composting gives businesses a sustainable alternative for managing their food waste. Many companies are simply throwing food away because they may not have other options available to them, and what we aim to do is close that food loop. By offering businesses an opportunity to compost, we ensure that the resources they are using — and paying to dispose of — are put back into a healthier and more sustainable food system. This creates a more robust solution for food waste recovery and helps businesses and residents alike see the value in contributing to a circular economy. Q: What are some of the partnerships you’ve established with local businesses and other organizations? A: Our primary farm partner is Sanctuary Farms, and through that relationship, we’re looking at expanding partnerships with multiple farms to broaden our reach. We’re particularly focused on districts 4, 5, and 6 in Detroit. We’re also working closely with the West Village Business Association—West Village is where our home base is, and we want to be impactful in that community. Beyond that, we’ve partnered with The Schvitz, AAA, and Renaissance High School. Each of these partnerships helps us connect with different parts of the community to extend our mission of food waste recovery. We are still very new and see growth on the horizon. Q: How do you think getting businesses on board to compost contributes to Detroit’s broader sustainability efforts, particularly in terms of reducing the city’s waste footprint? A: First, composting will reduce the amount of food waste going to landfills by closing the food loop through composting. But beyond the practical aspects, there’s a larger goal of shifting the overall mindset within the community and the city. Our mission isn’t just about waste — it’s about inspiring people to care more about their environmental impact. When you get businesses and individuals thinking about closing the food loop and diverting food waste, they typically start to think about other ways in which they can address sustainability. Q: What educational initiatives are you implementing to inform the community about composting and sustainability? A: Education is key. This summer, we collaborated with Renaissance High School to run a summer cohort program, where a group of students helped us fundraise for Scraps Soils. They learned essential skills like grant writing, networking, and fundraising, as well as the broader importance of composting. It’s not just about teaching them how to compost—it’s about giving them ownership over the future of sustainability in Detroit. Q: Do you have data on the amount of food waste diverted from landfills through your composting services? A: During our pilot program, we successfully composted 11,000 pounds of food waste. While we’re still compiling numbers for 2024, we are steadily growing, and over the next 6 to 12 months, we expect to see even more progress. Currently, we have just under 50 members, but the trajectory is promising, and we’re expanding at a consistent pace. Q: How did the idea for using a robot to collect food waste come about, and what were the primary objectives of the pilot program? A: The concept of composting and mobility intersecting is interesting. Managing trucks for food waste collection is expensive and resource-heavy, so we began to wonder if there might be more efficient ways to transport food waste. Detroit is a leader in mobility innovation, so it seemed like the perfect place to test this. The pilot program has allowed us to gather data and see how technology could streamline food waste collection in the future. Q: What were the environmental benefits of replacing traditional waste collection methods with a robot in terms of reducing emissions? A: A clear benefit is the reduction in emissions by eliminating the need for traditional trucks and the people and resources required to operate them. The robot helped us centralize the movement of food waste, removing the middleman and making the process more autonomous. We’re still analyzing the full impact of the pilot program, but it’s clear that mobility innovations like this can play a role in creating a more sustainable system. Q: How do you see technology shaping the future of waste management and composting in Southeast Michigan? A: We’re constantly learning about the evolving nature of mobility and how it connects to waste management. Looking ahead, I envision diversifying the types of vehicles we use and where the food waste ultimately goes. The city has been very engaged in observing the impact of our program, and we’ve gained valuable insights into

The Growing Role of Refill Shops

October 15, 2024 No Comments

The concept of refilling containers to reduce plastic waste and promote sustainability is taking hold in many forms. From pop-ups to brick-and-mortar, Refill Shops, known as refilleries, are becoming more prevalent. To find out more about the industry, SBN Detroit interviewed three local business owners: Corey Thompson, founder of Red Oak Refillery with installations in two locations; Jessica Cichowlas, owner of BYOC with brick-and-mortar locations in Ann Arbor and Plymouth, and Ashby Cummings, owner of MI-Fillosophy in Plymouth. Q: Why a refillery? Thompson: The inspiration for Red Oak Refillery came from my time working at Mama Suds, a brand focused on natural household cleaners. By 2021, we were seeing that roughly 30% of Mama Suds’ wholesale sales were directed to refilleries, predominantly on the East and West coasts. This made it clear that there was a need for refill services in other areas as well. I started my business as a pop-up in Oxford in 2021, working part-time with my product set up at a coffee shop in Lake Orion. Setting up my products for a few hours each day gave me the opportunity to fine-tune my model. Instead of going the traditional brick-and-mortar route, I opted for a distributed model with installations in businesses that align with my values. I currently operate in two locations and am preparing to open a third, all while continuing my role at Mama Suds. Cichowlas: I was a customer at BYOC, and the mission of reducing single-use plastic resonated deeply with me. The owner announced she was selling and I took over the two locations – Plymouth and Ann Arbor. My goal remains to uphold that mission, with a focus on sourcing from local family-run businesses that reflect our core values of sustainability and environmental responsibility. Cummings: Mi-Fillosophy launched in February 2023 with a focus on food rather than lifestyle products, which sets us apart from most refill shops. I noticed a significant gap in the market, particularly after many bulk food stores shut down during the pandemic, and I wanted to address that gap by offering consumers a more sustainable way to shop for food. Q: How has the community responded to the concepts of container reuse and the reduction of single-use plastics? Thompson: The community response has been positive. For some, the idea of a refillery is novel and intriguing, though it’s a concept that has been common in places like India for centuries. Others have embraced the concept and seek out refill shops that align with their sustainability goals. Beyond that, the community also has actively sought me out for collaboration. For instance, Orion Oaks Elementary reached out for assistance in achieving certification through the Green Schools Program, and I got invited to speak at various summits and conferences. I think refilleries naturally become hubs for education and sustainable practices within their communities. Cichowlas: The Ann Arbor community has embraced the refill shop a bit faster, I think, because the city has committed to sustainability goals – aiming for carbon neutrality by 2030. So, our store’s mission really resonates there. We’ve seen growing support in Plymouth as well, as more people begin adopting zero-waste practices. Cummings: Customers have responded positively to a refill shop focused on food. Many like the option of purchasing smaller amounts or just what they need, which helps them avoid unnecessary waste. Q: How has your clientele evolved over time? Thompson: Our customer base continues to consist of both repeat visitors and newcomers. Some people actively seek out refill shops as part of their efforts to live more sustainably, while others are discovering the concept for the first time. It’s rewarding to see that growth and interest. Cichowlas: We’ve developed a strong core of repeat customers, most of whom are local. However, we also see people traveling from further distances to stock up on refills, which is a testament I think to more people adopting sustainability practices. Cummings: I’ve drawn customers from all around metro Detroit, but more and more refill shops are opening so people don’t have to drive as far to reach them, which helps from an emissions reduction standpoint and therefore is great. Many people from the local community here have become regulars. Q: What challenges have you faced in operating a refill shop? Thompson: One of the biggest challenges is that this industry is still relatively new, so we’re dealing with the typical obstacles any startup faces. Beyond that, educating the public about the refill concept is a continuous effort. Cichowlas: Our main challenge is keeping our costs competitive with larger chains while maintaining our commitment to sustainability and local sourcing. Cummings: For me, since my focus is food, managing food safety is a challenge. Keeping track of expiration dates and managing recalls. There’s also a need for constant education, particularly around bulk food safety, which some customers are unfamiliar with. Q: What role do refill shops play in educating the community on sustainability? Thompson: Refill shops play a critical role in community education, whether we intended it or not. Customers come to us with questions, and we find ourselves being the ones to provide answers. It’s an organic process — people look to us for guidance. I also think the local refill shops act as an example and a reminder to think more sustainably. Cichowlas: I believe refill shops have an obligation to educate the community. From understanding which ingredients are safe to selecting products that align with sustainable values, we can remove a lot of the guesswork for people and it’s a service that’s important. Zero-waste can seem intimidating, so part of our mission is to make it accessible and achievable for everyone. Cummings: The presence of a refill shop brings sustainability to the forefront of community awareness. Every day, whether it’s answering questions about recycling or helping customers choose eco-friendly products, we’re educating our customers. Q: How do refill shops help reduce the carbon footprint? Thompson: The impact is significant, even with small changes. Just using a container