Richard Hosey – Developing Companies, People, as Well as Projects
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. 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.
Perspective on Eliminating Food Waste
DANIELLE TODD, IS THE EXECUTIVE DIRECTOR OF MAKE FOOD NOT WASTE Landfilled food is one of the primary sources of climate change due to two main reasons. First, food decomposing in landfills emits methane, a greenhouse gas 25 times more potent than carbon dioxide. Second, landfilled food represents a waste of land, water, and transportation resources that cannot be reclaimed. Given the substantial volume of food we send to landfills, methane emissions are skyrocketing and our resources are depleting at an alarming rate. Annually, Michiganders discard more than 2 billion pounds of food, resulting in approximately one-third of our landfills being composed of food waste. This excessive waste leads to the negative impacts of extreme weather such as flooding and power outages. It deteriorates air quality, threatens our food supply, and endangers vital plants and animals. Consequently, the State of Michigan, along with the U.S. government and the United Nations, has set a target to halve food waste by 2030. However, with 2 billion pounds of food still being landfilled annually, achieving this goal within six years presents a major challenge. Despite the fact that the problem is so great, eliminating food waste from our landfills is not all that difficult compared to other climate-related changes we need to make. Yes, it’s something we all must do, but it’s also something we all can do. According to the United Nations, more than half of the food waste comes from our homes. That means all of us can make a huge difference in this issue by changing how we handle food in our kitchens. For a fun way to get started, join our 7 Day Food Waste Challenge. You’ll learn the basics and begin to set up some habits that will drive down the amount of food you throw away. Of course, food waste happens outside of homes too. And if we’re going to reach the State’s goal in less than six years, we need a concerted plan. That’s why Make Food Not Waste has launched The 2030 Project, focusing on Southeast Michigan, the region with the highest population density. Concentrating efforts in this area is strategic, given that a larger population corresponds to greater amounts of waste. The project’s objective is to divert all food waste from landfills in the top 15 cities in the region. By collaborating with 17 local and national partners, Make Food Not Waste is crafting a detailed plan incorporating best practices in food waste reduction from across the country. The project’s approach underscores two critical principles: first, there is no singular solution to food waste. Second, we can only stop food waste by working together. While skeptics may argue that completely eliminating food waste from landfills is unattainable, we feel otherwise. It does not require the invention of groundbreaking technology or a defiance of natural laws. Rather, we simply need to stop throwing our food in the garbage. While establishing infrastructure, logistical frameworks, and educational programs pose challenges, they are not insurmountable. The alternative—continuing to waste our resources and make our planet hotter – is not something we can live with. Learn more at www.makefoodnotwaste.org. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
UDM: Teaching Design Through Social Justice and Sustainable Communities
For nearly sixty years, the University of Detroit Mercy School of Architecture and Community Development has been educating designers and planners. The school is committed to preparing students to address urban revitalization, environmental justice, and sustainability, and through its design studios, Master of Community Development, Detroit Collaborative Design Center, and international studies program, offers real-world experience. Dean Dan Pitera talked to SBN Detroit about the school’s approach to preparing students for the practical applications of sustainable design. Q: What can you tell us about the community development aspect of the school? A: If we take a child who is enrolled in a poorly designed and unmaintained school and then put that same child with the same faculty in the same neighborhood in a well-designed school, the child will be nurtured and developed differently. The space around a child – a person – is important. The spaces we are in influence how we are as people just like nutrition influences health and wellbeing. So why aren’t our communities designed differently? And from a school perspective – how do we teach that? We ingrain community development through the lens of social justice throughout our curriculum, and we start on day one of the program. For example, within a Structures course we embed these concepts, so students begin to see that whether they are designing a museum or affordable housing, all designs should be looked at through this lens. Q: The school is internationally recognized for its environmental justice-driven and student-centered approach. Talk about this approach and how it’s different. A: We help students understand that climate change and climate justice are linked. We sit in the Great Lakes region with Michigan at the center. Our buildings and our communities must be prepared and designed for climate migration, so our students must obtain hands-on experience. Q: You led the Detroit Collaborative Design Center for years. Is this center unique when it comes to design schools? A: Only a handful of architecture schools have something like this. I modeled it after the medical field, where teaching hospitals align with and collaborate with medical schools. The DCDC is a true architecture office within the school of architecture. It works exclusively with nonprofit organizations and government agencies. There, students get paid to work, and they work with professional architects, urban designers, and landscape architects. It is essential to take theory and practice and bring them together. Q: How do you prepare future generations of architects and planners to think sustainably throughout their careers? A: We’ve been teaching this way for a long time. Now, the students coming in want education around sustainability and that’s exciting for us. I think the most effective way to teach is not class by class, but through concepts that are continually woven throughout the curriculum. The concepts of social justice, climate change, and building sustainable communities are woven throughout every class and we start on day one, as I mentioned previously. I teach Introduction to Architecture to first-year students, and I introduce the United Nations development goals. I teach that architects essentially create 40% of greenhouse gases produced annually. The emissions come not just from the buildings themselves, but the materials used to build, and the processes taken to create these materials. Students come in thinking in terms of brick-and-mortar buildings, and we teach them immediately about the impacts on the environment and the communities around the buildings. We have a Zoning and Codes class in which students learn about redlining, deed restrictions, and blockbusting. Most professors at other schools are not teaching this. So, the students are learning and digesting these things constantly throughout their five years. Q: What do you think your graduates take out into the workforce that’s different? A: The ability to adapt to change. The program they are working with now to design lighting or a certain type of heat will likely not be the same program in four years. Things change fast. I asked my students in the fall of 2022 if they thought we’d be using AI going forward. They laughed. At the start of 2023, I asked them what tools we as architects would be using, and they all said AI. So, we work with the tools we have today but also train the students to be flexible and adaptable. They will need these skills to design and also to sustain their careers and lives. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
The Impacts of the Gordie Howe International Bridge on a Community
The Gordie Howe International Bridge – currently under construction – is a 167-acre suspension bridge spanning .53 miles, which is the longest main span of any cable-stayed bridge in North America. The impacts of the construction and future operations of the bridge in the Delray area in Southwest Detroit are formidable. Finding ways to assist businesses and residents and keep the community healthy and sustainable while a once-in-a-lifetime infrastructure project like this occurs has been the focus of several community groups. SBN Detroit spoke with Simone Sagovac, project director at the Southwest Detroit Community Benefits Coalition, and Laura Chavez-Wazeerud-Din, president and CEO of the Southwest Detroit Business Association, who are leading initiatives in the community to ensure the interests of businesses and residents are protected. The Southwest Detroit Business Association (SDBA) is a coalition of businesses and community interests committed to facilitating a stable and economically healthy Southwest Detroit. The Southwest Detroit Community Benefits Coalition is a community-initiated organization of residents and stakeholders in the direct impact area of the Gordie Howe International Bridge, whose mission is to seek protection for the quality of life and health of those facing impacts. Q: What impacts are the construction of and existence of the Gordie Howe International Bridge having on the Delray area? Sagovac: It has reshaped the entire neighborhood. One-third of the Delray community has been replaced by this development; 250 families were relocated, and more have chosen to move. Over 50 businesses are gone, and others are trying to figure out how to remain prosperous. Many small businesses are owned by people who live in Southwest Detroit. For the hundreds of residents still living in Delray, community amenities are no longer there, and more truck impacts are coming. Chavez-Wazeerud-Din: The transformation of the Delray community is undeniable, and while we understand that progress often brings change, our focus remains on addressing challenges faced by local businesses. The ongoing street closures pose challenges for customers trying to reach the area, while construction-related dust and debris impede pedestrian traffic. As a result, some businesses have opted to relocate downriver. Q: What is your organization doing to address these issues and mitigate the risks for residents and businesses? Sagovac: We helped initiate a Home Swap program with the city where residents can swap their homes for a land-bank house. About 100 families have chosen to do this. These houses are fully renovated, including new roofs, furnaces, HVAC, interiors, and more. This is a great program, but there are only so many land bank homes available to meet the needs, and some residents want to stay. For those who moved, it’s tough to replace a community you once were a part of. The I-75 Environmental Mitigation Program offered home mitigations such as improved HVAC systems, insulation, and new windows to address noise and air quality impacts from increased truck traffic. The Delray Home Repair Program provided these same options for new roofs and furnaces. We are also working with the state and the University of Michigan on air monitoring and tracking emissions. We’re working with other Southwest Detroit organizations and SDBA on truck traffic solutions – dealing with trucks that are currently being rerouted into neighborhoods and creating significant challenges for residents and the business corridor. Chavez-Wazeerud-Din: The SDBA supports nearly 900 local businesses by offering access to meaningful programs and resources. One resource is our Façade Improvement program, which has been instrumental in helping businesses maintain their relevance and appeal. We’ve extended this program to businesses located on Springwells Street and West Vernor Highway, among other areas. We also are actively engaged with the bridge authority, advocating for a portion of the recent $2.3 million grant funds to be allocated directly to businesses in Southwest Detroit. In addition, we are developing an Experience Southwest Detroit Campaign, recognizing that the increased traffic resulting from the bridge will impact the area. Our goal is to encourage people to stop for meals and retail purchases, allowing them to truly experience the character of Delray and Southwest Detroit, rather than simply passing through. Q: What is being done in terms of buffering and preserving the neighborhoods? Sagovac: We are still seeking additional buffering along I-75 and truck routes and are working with the city and state on this. This is covered in the Delray Neighborhood Framework Plan. Chavez-Wazeerud-Din: We’re collaborating closely with the city and planning department to enhance the safety of the corridor, prioritizing its walkability once more. West Vernor Highway has unfortunately become a main thoroughfare for semi-trucks, posing serious safety concerns for businesses and residents alike. As a result, we’re actively addressing truck routing issues, and we’re optimistic that the Joe Louis Greenway will alleviate some of the traffic on West Vernor Highway. We are involved in the Detroit Intermodal Freight Terminal project to support businesses and the economy in Southwest Detroit by improving freight transportation opportunities. Q: What are the biggest challenges and opportunities? Sagovac: Living with extreme daily truck traffic impacts the community’s health and quality of life deeply. It also damages and devalues property. We are working with the city and many others to bring all forms of solutions, including better truck routing, new infrastructure and zoning, and other policies that will create a quality of life that any family should expect. We also need the support of trucking businesses to ensure their policies and their drivers respect all the traffic safeguards to protect our shared community. Chavez-Wazeerud-Din: Southwest Detroit embodies resilience, characterized by its gritty spirit and the determination of its do-it-yourselfers, a legacy spanning over a century. Business owners and residents (who are often the same) have been impacted and marginalized for a long time. Despite these challenges lies an opportunity: There are funds and resources available to build a more sustainable community. This community, with its rich history and vibrant culture, is not just worth saving – it’s worth nurturing and celebrating for generations to come. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Urban Tech Xchange Facilitates Real-World Testing to Create Sustainable Urban Solutions
Nearly six months ago the Urban Tech Xchange (UTX) launched in Detroit – an innovative lab hosting a series of startups to advance smart city technologies. UTX is a collaboration between Bedrock, Bosch, Cisco, and KODE Labs and is operated by NextEnergy. The space provides a real-world test facility for the progression of sustainable urban solutions. Kevin Mull, senior director for the Office of Urban Strategy and Innovation at Bedrock, sat down with SBN Detroit to discuss the work being done there. Q: Impetus behind UTX? A: In 2021 Bedrock worked with Bosch, Ford, and the Michigan Economic Development Corp. (MEDC) to launch the Detroit Smart Parking Lab (DSPL) at our Assembly Parking Garage. This lab was specifically designed to accommodate open innovation, allowing startups to quickly and effectively deploy early-stage mobility technologies in a real-world testing environment. The concept has worked so well that we began to think about what’s next… being Detroit’s largest real estate developer, it made sense to try to apply those same methods to developing and deploying technologies for the built environment. The DSPL’s focus is mobility and transportation, which in many ways is dependent upon infrastructure, so the Urban Tech Xchange (UTX) was its natural progression. Q: In what ways does UTX help to foster a more resilient Southeast Michigan? A: I think it brings attention to the region’s entrepreneurial spirit and helps define Detroit as a place for innovation while adding another layer to its creator ecosystem. It also gives us a chance to further collaborate with stakeholders here in Southeast Michigan. Between the DSPL, TechTown, Michigan Central, Centrepolis Accelerator, and others like those, and our universities and colleges, and now UTX, we have an emerging set of platforms for continuing to attract and cultivate new ideas and advance open innovation throughout the state. Q: Why the combination of Bosch, Cisco, Bedrock and KODE Labs? A: Bosch and Bedrock are natural cofounders as they have complementary business concepts. Bosch is a lead innovator in energy and building management, while Bedrock is a city builder whose development projects throughout the central business district range from residential and commercial development to hospitality and retail. Cisco is a globally recognized brand and a huge player in smart infrastructure deployment, while KODE Labs is uniquely positioned as a Detroit-based startup focused on smart building technology that has recently experienced tremendous growth. The four companies together bring all the expertise for supporting a sustainable innovation platform, and importantly, maintain a strong Detroit presence. Q: How will Bedrock data be used to design sustainable solutions? A: This is the first-in-the-world kind of opportunity that’s driven by the uniquely dense portfolio we have in Detroit. We have this construct we are working on called a data lake, which is the aggregation of the data that comes from Bedrock’s 17 million square feet of real estate across Detroit. Its access to this unique operational data, combined with publicly accessible information like that from Census Data and the U.S. Energy Information Administration, provides lab participants with the unique opportunity to tie into a broad real estate ecosystem. We encourage and want anyone who engages with UTX to integrate their data as well, and under the right governance, we can offer this data lake to third-party developers for innovation. Q: In what ways are energy usage and decarbonization being looked at? A: Technologies like those being tested and deployed through the UTX platform allow us to track energy usage in real-time and better understand asset optimization. This provides us with the ability to cut back quickly and efficiently on carbon intensity. For example, heat pumps are a great technology but in certain situations, traditional heating systems might actually create less carbon. Real-world and real-time testing will help reveal this. The more data we get, the better decision-making we have and that can support AI applications as well. So first, it’s about understanding where a building is using energy, then understanding how the building responds to energy usage profiles. Q: Elaborate on how UTX is forming best practices for ensuring equity in urban tech solutions. A: When we set out to develop UTX we engaged several stakeholders such as community organizations, local government, public schools, and other platforms to all weigh in. Our work is fully transparent and there is a lot of communication in terms of where we are applying the technologies. For example, we are currently deploying tech in an area of Detroit to better understand air and noise pollution. We are working side-by-side with the community to make sure businesses and residents understand where we are doing this, how we are doing it, and in what ways the information will be used. Communication is paramount when trying to achieve equity in tech deployment. Q: In what ways does all of this work being done here impact businesses in Southeast Michigan? A: I look at it as a bidirectional flow. By establishing the UTX platform, we are helping to attract the best and brightest to deploy their innovations locally. Conversely, established local businesses have the opportunity to plug into a platform that provides a potential global spotlight. Q: What are some examples of new technology that’s being developed there? A: There are several examples of building automation systems, such as using smart blinds that automatically adjust to provide maximum natural sunlight based on occupancy and interior temperature. What I find very interesting are new systems for tracking and automating accessibility. One such deployment is smart communication between power wheelchairs and elevators. … The elevator is automatically called when the wheelchair arrives! Q: Do you think UTX is a differentiator for Detroit? A: Yes. Again, it puts Detroit on the map as a place that’s committed to, and capable of driving innovations and setting benchmarks and best practices for sustainable urban solutions. UTX is putting a stake in the ground for sustainable tech in an urban environment. Detroit is where the innovation is happening. Be sure to subscribe to our newsletter for regular updates
Unlimited Recycling – 25 Years and Still Evolving
In 1999, Maria Marin tapped into her passion for “doing the right thing for Mother Earth” and started Unlimited Recycling Inc. Today, the company offers total recycling and waste management to companies and individuals nationally with the goal of going global. SBN Detroit sat down with Marin to hear about how her recycling services – and clients – have evolved over the years. Q: Tell me about Unlimited Recycling A: Unlimited Recycling is a comprehensive total waste management company offering one-stop-shop services for any type of waste stream. Our services include transportation of any waste or recycling material, equipment rental, including dumpsters of any size, compactors, balers, and any type of container to properly store and transport material. In addition, we offer reporting, training, and education. To date, we’ve handled millions of pounds of waste. Q: What prompted you to start the company in 1999? A: I worked for the Department of Natural Resources, and we received many calls on illegal dumping in waterways and even backyards. When I became pregnant with my first son – who is now the VP of the business – I was told not to eat the fish out of the Great Lakes due to mercury levels. I was so disturbed by that and felt I needed to do something about this problem. I also had the desire to be independent and have my own business. The opportunity presented itself when I lost a job and was looking for next steps. I decided it was time and that I could start my company and shape it any way I liked. The opportunities were limitless, so I named it Unlimited Recycling. We started with universal waste such as fluorescent lamps, batteries, electronic equipment, etc. Eventually, customers started asking about other waste streams, including industrial waste and gradually adding more services. Q: How did your business evolve? A: In 2008, I had the opportunity for an Army contract – they wanted solid waste management for recycling and trash. This would require trucks and dumpsters in an industry I did not know anything about. It took three months for me to learn the business, and the contract was awarded two months later. I purchased my first roll-off truck and 13 dumpsters. Our fleet and equipment have grown tremendously since then. Facilities and companies want one vendor to oversee all their recycling and waste management needs, so we have taken this on by managing these companies’ vendors, contracts, billing, dispatching, and purchasing. We went national about three years ago. Q: How have things changed over the years with the recent government mandates and focus on greenhouse gas emissions and sustainability overall? A: It has been very refreshing to see that the State of Michigan and the governor are on board. Last year, Michigan set new policies to increase the state’s 19% recycling rate to 29% by 2029 and organic waste to 45% material recovery by the year 2050. I believe these goals could be achieved much sooner. To do this, we need to spread awareness within our personal and professional communities. We are working with companies such as Walbridge, managing LEED disposal management for the Gordie Howe International Bridge U.S. Port of Entry, Selfridge Air National Guard Base waste and recycling for the last 22 years, and total waste management for Android Industries, Magna, and many other automotive suppliers. When I started the business, people thought I was crazy. Now I don’t have to sell the why. We have people calling us every day. It’s still a challenge, but every day awareness increases more for the need to recycle. Q: You mentioned you also train companies in recycling. What does that look like? A: Yes. Many people still don’t know how to properly recycle and also find it daunting. I go into businesses and implement their recycling program according to their needs. Often, we start with single-stream recycling for offices and train them on acceptable items and materials, containers needed, etc. Many people do not realize that if you put one waste material that doesn’t belong in a recycling bin, it will contaminate the load. Also, there is a misconception that recycling is expensive. We’ll do a cost analysis for companies and show them that being sustainable is not only the right thing to do, it can also be economical. We’ve saved companies thousands of dollars from diverting cardboard alone. Q: Have the needs of your clients changed a lot through the years? A: Yes. Many started with one service and now we are handling all of it. I’ve seen many companies grow in their efforts over the years. They are becoming more environmentally aware, and their corporate offices are setting higher standards for sustainability, so we get requests all the time from current customers asking if we can recycle new additional waste streams for them or find a solution for a waste stream that isn’t commonly known to be recyclable. I think our services and creative solutions help us retain our customers and find new ones through recommendations regularly. I think that credit goes to our amazing team that responds quickly to customer requests and needs. Q: You offer dumpster rental, universal waste recycling, industrial waste recycling, food waste composting, and LEED waste management. What services do companies and institutions use the most? A: All of the above every day! We are getting more and more requests lately for LEED. (Leadership in Energy and Environmental Design). Q: What does your future look like? A: Our goal is to increase our total waste management services to help companies reach their sustainability and zero-waste landfill goals. We started here in Detroit and are now nationwide; however, it has always been in the plan to go global. I want to go back to my roots, to South and Central America, to teach Latin communities how to recycle, providing them with education and resources. I was recently invited to travel to Africa to assist the country with its plan to implement
Global Green Energy and Metals Company Chooses Detroit for its First U.S. Advanced Manufacturing Center
The former Fisher Body Plant on Piquette Avenue in Detroit has been chosen by Fortescue, a global green energy and metals company, as the location for its first U.S. Advanced Manufacturing Center. The facility will bring roughly 560 manufacturing and engineering jobs to the area focused on the production of automotive and heavy industry batteries, hydrogen generators, fast chargers, and electrolyzers. The project received incentives from The Michigan Strategic Fund, including a $9 million Michigan Business Development Program performance-based grant; a 15-year, 100% State Essential Services Assessment exemption valued at $1,300,950; and state tax capture valued at $2,374,413, for reimbursement of brownfield activities at the site. The project also is requesting $5,247,422 in tax-increment financing from the Michigan Department of Environment, Great Lakes, and Energy to assist with environmental-eligible activities. SBN Detroit interviewed Josh Hundt, MEDC’s Executive Vice President and Chief Project Marketing Advisor, about the role Fortescue will play in Michigan. Q: Fortescue chose Detroit Michigan for its first U.S. Advanced Manufacturing Center. What do you think this says about Southeast Michigan in terms of sustainability and manufacturing? A: It says that Michigan and Detroit are at the global epicenter of the mobility industry. Having put the world on wheels 120 years ago, Detroit is the birthplace of the automotive industry and it is also the industry’s future. This also clearly points to the fact that companies have a desire and need to be in Detroit for these types of opportunities. Q: Tell me about Fortescue. A: Fortescue is a global green energy company that plans to breed manufacturing practices and clean energy growth through its center here. Its goal is to be the number one green tech and metals company in the world. Q: What role did MEDC play in bringing Fortescue to Detroit? A: MEDC helps to grow companies already in the state while attracting new businesses to Michigan. Fortescue looked at 99 sites across twelve states, considering many variables such as labor cost, availability, cost of business, speed to come to market, and more. We’ve worked with them since they announced their decision to build in the U.S. to secure the right space for them in Michigan. Q: Fortescue’s CEO, Mark Hutchinson, said, “Fortescue’s Advanced Manufacturing Center will breathe fresh life into the birthplace of the automotive industry.” What are your thoughts on this? A: Michigan, Detroit, and the old Fisher Body Plant are all steeped in automotive heritage and legacy, and we can utilize that legacy of engineering, and research and development, and manufacturing to build the future of clean energy, advanced manufacturing, and mobility. This is an opportunity to move the industry, state, and community forward. Q: Why Detroit? A: Fortescue can leverage the 120 years of experience we have in Detroit to build a bridge to the future. Nearly three-quarters of U.S. automotive research and development takes place in Michigan. We lead the production of EV battery production. We have an existing supply chain and strong industry here. Fortescue also strongly considered ‘place.’ This community is in the midst of a transformation in terms of how investment is happening, and it’s a community of people who are skilled and educated to fill the roles the company will need. Q: How do you think Fortescue will impact other businesses in Southeast Michigan? A: Every time we see a company make an investment like this, it has a strong ripple effect on the industry, city, and region. This demonstrates that companies from around the world see Detroit as the future of mobility and advanced manufacturing. Fortescue will create 560 new jobs and is making a $210 million investment. This will help increase property values, and it’s an opportunity to develop the supply chain much further. This is great news for the industry and the community. Q: How do you think it will impact the economy? A: First it will create 560 jobs. Second, it furthers Michigan’s strength in the mobility sector while highlighting that we are the center for advanced manufacturing and clean energy. Third, this investment will also bring new tax revenue and new opportunities for suppliers to have growth occur here in Detroit. And finally, their presence will impact restaurants and venues in and around the community for additional growth. Q: What role do you think Fortescue will play when it comes to sustainability in Southeast Michigan? A: I think the biggest thing is the role they play in showing leadership – demonstrating that a company can have a great economic impact with job creation and investment and do it in a way that also puts sustainability and the environment at the forefront. And, their choice to renovate and utilize the old Fisher Body Plant speaks volumes because it shows that a facility can be reimagined and transformed for the future. This is an investment in a century-old building being leveraged to take us forward. Q: What does the future of Southeast Michigan look like with Fortescue as a part of it? A: Fortescue will be part of a strong mobility landscape and a part of the overall story of how Southeast Michigan is positioned to remain the global leader of the mobility industry. We’ve seen the success of projects around innovation and investments – like Nel and Plastic Omnium – that have positively impacted Southeast Michigan. This is a project that will put people in sustainable jobs, revitalize the area, boost the economy, and facilitate green energy for the future. It is a win for everyone. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Martinrea: Balancing Growth with Energy and Waste Reduction Goals
With over 19,000 employees working in 56 manufacturing, engineering, and technical centers in over 10 countries, Martinrea International is a global auto parts manufacturer focused on the design and development of lightweight structures and propulsion systems. Its sustainability goal is to operate in a socially responsible and ethical manner centered around respect for the environment, laws, universal human rights, and communities around the world. SBN Detroit spoke with Rachel Handbury, director of sustainability, to find out more about the company’s approach and execution. Q: How do you approach sustainability at Martinrea? A: Martinrea views sustainability as a holistic approach that encompasses both people and the planet. Our vision is to make lives better by being the best supplier we can be in the products we make and the services we provide. One of our ten guiding principles is to ultimately “leave It better.” Q: How is sustainability organized internally? A: There are a lot of different layers within Martinrea to achieve sustainability. It is embedded throughout the company from leadership to the manufacturing plants. We have a Sustainability Steering Committee, and the group holds quarterly meetings. This is led by our CEO, and his presence in the meetings drives the importance. We have a strong team working constantly on sustainability that meets weekly. This involves a sustainability lead from each of our four business units (Aluminum, Metallics, Flexible Manufacturing Group (FMG) and Fluids). We review each business unit’s sustainability targets, initiatives, and implementation. As you can imagine, each group drives their sustainability priorities slightly differently due to their different manufacturing processes. Q: In around 2019/2020, Martinrea hired a third-party consultant to assist with the sustainability strategy. How did that work? A: Martinrea utilized this consultant team to perform an internal materiality assessment, identify our stakeholders, and propose a sustainability strategy, which I was hired to manage. We then developed the business unit sustainability lead team and the Sustainability Steering Committee – the management structure needed to implement the sustainability strategy. Q: How do you get employees involved in sustainability? A: We do this in multiple ways. Education is key. The more our employees know about sustainability and how Martinrea supports sustainability, the more they want to incorporate it at work and in their homes. The fact that our leadership is on board is very important. It’s embedded from the top down and vice versa. Sustainability is also part of our internal business plan. We have implemented sustainability scorecards for the manufacturing plants and within each business unit, so everyone has clear sustainability targets they are looking to achieve. We also give out an annual ‘Leave it Better’ award to a plant that is excelling in all aspects of sustainability. The purpose is both to highlight the work being done and to foster involvement. The added benefit is that the winning plant inspires others to do similar work in their plant. Q: What are your short-term goals for 2024? A: We have a year-over-year goal of a 3% reduction in energy intensity (energy consumption relative to sales) in all operations. We also have a year-over-year absolute carbon reduction goal of 3%. This year we added internal water reduction goals, and we are working to reduce water consumption focusing on the plants located in high-water risk areas and plants that have the highest water usage. Q: What are your longer-term goals? A: 35% reduction in absolute carbon by 2035 without carbon credits, and we strive for every manufacturing plant to be zero landfill. Q: What are your biggest challenges? A: We are a growing company, so as our production increases, we have to balance that with continuing to achieve our reduction goals. Q: What are the biggest opportunities? A: Sustainability is very important to our customers and communities. We are an authentic company achieving our sustainability goals through energy efficiency and giving back to the communities in which we work and live. Our approach to sustainability provides a competitive advantage since our customers want to work with sustainable suppliers. Q: How are your suppliers vetted when it comes to sustainability? A: Suppliers are a big focus for us right now. Just as our customers view us as partners in sustainability, we also view our suppliers as partners. We have sustainability embedded in our supplier assessments and our supplier code of conduct. We are also providing more education to our suppliers so that they understand why it’s important to us and also to them. Some of our suppliers are in the early stages of sustainability and we can help to pull them along on this sustainability journey. Q: In 2022, Martinrea set a goal to reduce carbon emissions by 35% by 2035. How will you get there? A: It’s a multifaceted approach. But boiled down, we focus on reductions first. We need energy to produce parts, but we are looking at how we can use energy in the most efficient ways. The next stage is to look at renewable energy. In one of our plants in Spain, we just installed solar panels that provide 10% of the plant’s energy. Q: You have reduced carbon intensity by 19% since 2019 – how? A: This same strategy. We start with low-hanging fruit. There were significant reductions made by switching lighting to LED, simple changes in welding techniques, and more. It’s really about having eyes on the manufacturing process through the lens of sustainability and making changes. Q: What does the future look like? A: Following the strategy we’ve developed to push sustainability further each year, we will be utilizing innovation to accomplish energy and waste reductions, increasing efficiency, and then incorporating renewable energy, where possible. At Martinrea, it’s not about making broad claims, it’s about being authentic and digging deeper to see where we can make a difference, both for people and the planet. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Greektown Monroe Corridor Redevelopment Priorities Include Sustainability
In June, the Greektown Neighborhood Partnership was awarded a $20 million infrastructure grant by the Michigan state legislature to redesign the Monroe Street corridor. The goals of the redesign are to prioritize pedestrians, drive economic development, calm vehicular traffic, green the area, create space to accommodate outside seating for the restaurants and cafes and connect Greektown to surrounding communities as well as the core of downtown. The project also incorporates several sustainability practices layered throughout. Melanie Markowicz, executive director of the Greektown Neighborhood Partnership, spoke to SBN Detroit about what this means to the residents, businesses, visitors, and patrons in the area. Q: How will Greektown use this $20 million grant? A: The Monroe corridor redevelopment is going to be transformative for Greektown, Detroit, and the whole state. Greektown is one of the oldest neighborhoods in the city. Its roots go back to the 1830s with German immigrants and Greek immigrants settling here throughout history. Today much of Greektown is owned by multigenerational Greek families. There is this intimate feel with the buildings being so close together and this gorgeous architecture. It’s a special place. Monroe Street has the highest pedestrian usage in downtown Detroit with prepandemic numbers reaching up to 19,000 pedestrians per day. Pedestrians outnumber the cars. There is a wealth of restaurants and bars and entertainment. So, with this grant, we have set out to define the future of Monroe Street and pedestrianize it in a formal way. We will reorient vehicular traffic to one lane in the center of the street and create very wide sidewalks lined with trees and amenities. Currently, there is only one block that can facilitate outdoor cafés and seating, and we want the whole corridor to be able to do so. The street will ideally become pedestrian-only on weekends and possibly more often than that. We will create and activate a corridor that truly functions as a beautiful, inviting, connected, and unique public space that incorporates and celebrates its cultural heritage within the design. Q: How do you think this redevelopment will impact the businesses around it? A: I think the impact will be significant. Once done, every business that has wanted an outdoor café will have the ability to have one. Before we began planning, we met with every business owner to understand how their business functions so that we can design it to best suit their needs. When the street is closed to traffic, the center lane will become a pedestrian lane. It will also allow for programming of different kinds. We are building hooks into the ground for tents and designing the space for these activations and festivals. Pedestrianizing the Monroe Corridor has been a long time coming for this neighborhood and we are thrilled to have the support of the state. Q: What are some ways you are incorporating sustainability within this development? A: Sustainability can take a lot of forms from the environment and greening to energy to the materials being used to connectivity within a community. I think there is a sustainability element to how we approached the project, inviting everyone to the table for the conversation from property owners to businesses to residents to city departments. It’s been fully collaborative to ensure that what we develop here has a long lifecycle. There are certainly sustainability elements to seeing shifts in climate change. We are working carefully to add mature trees to provide the area with a tree canopy and control the temperature. We are intentionally using pavers for the entire corridor versus concrete, so they can be removed for utility work and reinstalled versus concrete or other materials going to a landfill. We are exploring infrastructure technologies such as ice melting and EV charging stations. Q: What do you think are the biggest opportunities? A: We are creating this intimate yet connected space in Detroit that has this authentic flair and feel. There is the greening element and the pedestrian element. Greektown is a tourist destination, so these changes will enhance that experience and allow for even more foot traffic. Greektown is a core area of downtown yet it has been largely separated. With this project, we aim to connect the urban fabric including the downtown area, Paradise Valley, and more. Another significant element is that there are all of these other projects in the pipeline around us – and that is intentional. We’ve all been working together. From the Monroe Street corridor to the Randolph Plaza Streetscape project to the restoration of Bedrock properties to the Cadillac Square redevelopment to new public spaces in Paradise Valley – the whole area will change dramatically in the next five years. Q: What are the economic opportunities? A: I think there are huge economic opportunities, especially tied in with these other projects. We have this boom of development in the area and underutilized properties. We anticipate vacant spaces being filled and activated. The businesses will be impacted with more patronage and activation of more outside space. Q: What about the community and cultural impacts? A: We will incorporate the cultural and architectural heritage in everything we do. Many of the property owners are multigenerational Greek families who have been in the community for decades and created this unique niche and it’s critically important to preserve and highlight that. We will continue to utilize and preserve Victorian architecture. We are also being intentional about incorporating public art including murals and more. Q: Is there a job creation aspect involved in this project? A: Yes. Within the construction and project itself, and also, once we can program the whole space in a new way, that will create jobs along the corridor and within the businesses. Q: What is your vision overall for the future of Greektown? A: The beauty of this is that the vision comes from the community itself. That’s what gets me excited. Incorporating and sustaining Greektown’s heritage and improving on that so that the area just continues to get better and become more connected.
Historic Detroit Hotel is Renovated With Sustainability in Mind
The Westin Book Cadillac Detroit, a historic 31-story hotel on Washington Boulevard, executed a $20 million makeover this year, and sustainability was part of the plan. The hotel first opened nearly a hundred years ago in 1924 and had several owners before closing in the 1980s. It was reopened in October 2008 after a $200 million restoration. It is managed by Marriott International. SBN Detroit spoke with Scott Stinebaugh, director of sales and marketing, The Westin Book Cadillac, to learn more about how sustainability has played a part in the renovation. Q: Talk to me a bit about your sustainability approach. A: For a long time, I think we were not doing as much as we could have been. And then we were hit with COVID and all things came to a grinding halt. As we started looking to renovate the building, that presented many opportunities to improve on what we had been doing. The hotel is just emerging from a $20 million renovation. Looking back to 2008 when we reopened after a full-scale $200 million restoration, we had state-of-the-art HVAC, water flow, and energy equipment at that time, and now fifteen years later, it’s time to improve the infrastructure and systems. And we’ve done that. Q: What are some examples you can point to? A: We’ve upgraded the 453 guest rooms and public areas to 100% LED lights. We replaced 1,500 four-foot fluorescent tubes with LED lighting, and 330 75-watt halogen bulbs have been converted. All of the guest rooms had individual heat pumps so that was a good start, but we upgraded the public area HVAC system to a system that has a sensor and uses outside air when the conditions are right to cool the building. Another part of the renovation was converting 75% of the tubs in the guest rooms to stand-up showers (which can save water). We donated as much of the furniture as we could to divert it from landfills. Habitat for Humanity took as much as possible, and the rest went to liquidators who used third parties to reuse the furniture. We now recycle all cardboard, bottles, and cans and have them picked up weekly. From a food waste standpoint, we work with Metro Food Rescue. We call them when we have extra untouched food and they come pick it up within an hour and distribute it to people in need. We are also working with Make Food Not Waste to get certified through their PLEDGE program focused on reducing wasted food. In meeting rooms, we now have water bubblers versus serving water in pitchers and we converted from plastic water bottles to box water. In line with our brand, Westin has a new initiative called The Well in which guests can get complimentary water in the lobby and refill the throughout their stay. We sell glass bottles that guests can use also. We are among the first Westin hotels to launch this. Q: Do your guests ask about your sustainability practices? A: Yes. We get a lot of questions about our sustainability practices. We know this is part of the decision-making when people are choosing venues for events. It’s happening more and more, which I think is great. Q: What are the biggest challenges? A: Being consistent. Sometimes we get so busy in an operation like this. We are a $40 million annual revenue entity, and the work can seem endless. It’s about not getting lazy and staying consistent. Because it’s easier to throw that piece of waste in a place where it does not belong versus recycling. It’s easier to throw food away versus calling for a pickup. It takes focus, time, and accountability and that, I think, is our biggest challenge. Q: How do you keep staff accountable? A: We have weekly goals in every department that we call WIG (Wildly Important Goals). These are important goals that we put into a measuring platform every week, and sustainability goals are a part of this. There are small and large things in each department that, combined, make a difference. Q: What are the biggest opportunities? A: I think there are more things we can do in all areas of the hotel and also the ongoing education of the staff. Making sure when staff turns over that our sustainability commitment and practices are ingrained in new employees so that our efforts are not weakened or broken is critical. It’s important to keep that fire going. Q: Do you find your staff to be enthusiastic about the sustainability efforts? A: Yes. I think they are excited about making a difference. I see it in the commitment they have to follow and work through the processes that are in place. And the overall commitment here comes from the top down as well. Q: How do you think your efforts might influence businesses in Southeast Michigan? A: We all need to be good corporate citizens and responsible to the earth. I think when others witness our efforts and the efforts of those around them, that can be contagious. I hope so. Q: What are you most proud of when it comes to the practices you’ve implemented? A: The metro food rescue. I’m a day one employee in this hotel. Over the years, I’ve seen a lot of food waste. Food that is untouched going into the trash. Putting a stop to that and being able to give perfectly good foot to those in need is huge. And imagine if everyone did that. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
