United Way, YWCA look for new locations
UNITED WAY IN THE NEWS
July 17, 2006
By Sherrie Begin
Crain's Detroit Business
United Way for Southeastern Michigan is looking for a new downtown Detroit home with more open space to better meet its emerging role as a convener in the community.
The Young Women’s Christian Association of Metropolitan Detroit is also looking for a new downtown building — but one with less space than its current home in the former University Club building on Jefferson.
United Way’s headquarters in the former Detroit Savings Bank on Griswold is about 110,000 square feet spread among 13 floors, said President Michael Brennan.
The building was built in the early 1900s and donated to United Way by Comerica Bank in the 1980s.
The configuration of the building only allows seating for ten to 12 people per floor and doesn’t provide the open space United Way needs for public gatherings, he said.
Parking also will become a larger issue as United Way begins to host community meetings, Brennan said.
Right now, the way the building is designed, at least 25 percent of the United Way building is surplus space, meaning it is not cost-effective, said Diane Jones, director of the Nonprofit Facilities Center, a United Way program.
“We’re certainly looking to lessen the employee division by floors, maximize and open space design if possible and create stronger community convening space,” Brennan said.
A larger space would also allow United Way to provide all its 2-1-1 health and human-service call service centers from one building, Brennan said.
The nonprofit is looking for 50,000 to 60,000 square feet in Detroit’s central business district, he said.
“I’ve gone through this process a couple of times, both in (Washington) D.C. and in West Michigan,” said Brennan.
“Space matters, and it can play a role on your performance, culture of employee attraction and retention, and your cost structure.”
The Nonprofit Facilities Center also is working with the YWCA to assess its space needs. The center recently awarded the nonprofit a $16,000 planning grant, said Emma Peterson, president and CEO.
Like United Way, YWCA would like to remain downtown, she said.
At 56,000 square feet, its current location in the old University Club building on Jefferson is much too large and draining the nonprofit’s resources, Peterson said.
“With the economy the way it is, there’s an extremely high need for people who need services,” she said. “We would much rather invest in programming than to continue to invest in the high operating cost of a facility.”
Peterson said the group prefers to retain ownership of the building with the help of a partner, but has posted a “for sale or lease” sign out front.
YWCA is still auditing its 2005 numbers, Peterson said, but preliminarily it posted revenue of $2.8 million and an operating deficit of $208,000. Of that, $130,000 was depreciation related to the building and YWCA’s other assets, she said.
To counter the rising costs of operating and maintaining the 1931 building which was designed by Albert Kahn, YWCA last fall eliminated two full-time positions and laid off three other employees, increased employees’ health care co-pay and cut salaries across the board by 5 percent, Peterson said.
The moves saved $73,563 and left the organization with about 42 full-time employees and 70 part-time workers, she said.
“Obviously this wasn’t enough, so what we really have to do now is look elsewhere,” said Peterson.
July 17, 2006
By Sherrie Begin
Crain's Detroit Business
United Way for Southeastern Michigan is looking for a new downtown Detroit home with more open space to better meet its emerging role as a convener in the community.
The Young Women’s Christian Association of Metropolitan Detroit is also looking for a new downtown building — but one with less space than its current home in the former University Club building on Jefferson.
United Way’s headquarters in the former Detroit Savings Bank on Griswold is about 110,000 square feet spread among 13 floors, said President Michael Brennan.
The building was built in the early 1900s and donated to United Way by Comerica Bank in the 1980s.
The configuration of the building only allows seating for ten to 12 people per floor and doesn’t provide the open space United Way needs for public gatherings, he said.
Parking also will become a larger issue as United Way begins to host community meetings, Brennan said.
Right now, the way the building is designed, at least 25 percent of the United Way building is surplus space, meaning it is not cost-effective, said Diane Jones, director of the Nonprofit Facilities Center, a United Way program.
“We’re certainly looking to lessen the employee division by floors, maximize and open space design if possible and create stronger community convening space,” Brennan said.
A larger space would also allow United Way to provide all its 2-1-1 health and human-service call service centers from one building, Brennan said.
The nonprofit is looking for 50,000 to 60,000 square feet in Detroit’s central business district, he said.
“I’ve gone through this process a couple of times, both in (Washington) D.C. and in West Michigan,” said Brennan.
“Space matters, and it can play a role on your performance, culture of employee attraction and retention, and your cost structure.”
The Nonprofit Facilities Center also is working with the YWCA to assess its space needs. The center recently awarded the nonprofit a $16,000 planning grant, said Emma Peterson, president and CEO.
Like United Way, YWCA would like to remain downtown, she said.
At 56,000 square feet, its current location in the old University Club building on Jefferson is much too large and draining the nonprofit’s resources, Peterson said.
“With the economy the way it is, there’s an extremely high need for people who need services,” she said. “We would much rather invest in programming than to continue to invest in the high operating cost of a facility.”
Peterson said the group prefers to retain ownership of the building with the help of a partner, but has posted a “for sale or lease” sign out front.
YWCA is still auditing its 2005 numbers, Peterson said, but preliminarily it posted revenue of $2.8 million and an operating deficit of $208,000. Of that, $130,000 was depreciation related to the building and YWCA’s other assets, she said.
To counter the rising costs of operating and maintaining the 1931 building which was designed by Albert Kahn, YWCA last fall eliminated two full-time positions and laid off three other employees, increased employees’ health care co-pay and cut salaries across the board by 5 percent, Peterson said.
The moves saved $73,563 and left the organization with about 42 full-time employees and 70 part-time workers, she said.
“Obviously this wasn’t enough, so what we really have to do now is look elsewhere,” said Peterson.
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