1. LEADERSHIP & COMMUNITY
TRANSFORMATION
The Story Of Harbor Shores

2. Vision
“Make no little plans. They have not
the magic to stir men’s blood and
probably themselves will not be
realized. Make big plans, aim high in
hope and work”
- Daniel Burnham
(Architect & Urban Planner)

3. PREAMBLE

4. AGRICULTURE TO
INDUSTRIALIZATION
Early 1900’s………………………….TO……………………………1970’s

5. IMPACT OF GLOBALIZATION

6. POPULATION DECLINE
HISTORICAL POPULATIONS
174000
172000
171276
170000
168000
166000
HISTORICAL
164000 163875 POPULATIONS
162000 162453
160000 161378
158000
156000
1970 1980 1990 2000

7. UNEMPLOYMENT TRENDS
10
9
8
7
6
5 Berrien County
4 Michigan
3 United States
2
1
0

8. INCUBATION OF SYSTEMIC
ISSUES
 Education viz a viz Family System
 Political System – No confidence in the
government
 Decline Of Social Services – Police
Department, Fire Department etc…
 Decline in Tax Base

9. 1985-2003:
INDUSTRIAL SHUTDOWN
 WHAT NEXT?
- Jobs Needed!!!!!
- Environmental Remediation
- Refurbishing Community Infrastructure.
- Community Self Identification Branding
- Increased Tax Base/ Financial Independence

10. A Foundation for Community
Transformation

11. HISTORY
 Began consultancy with Melrose/Evergreen in 2002.
 River Run, LLC formed October, 2004 by Whirlpool Corporation and Cornerstone
Alliance with Melrose serving as pre- development consultant.
 Formalized business plan to be delivered August 1, 2005
 Location history
 Project description and organizational structure
 Master plan/Project design
 Project entitlements
 Project budget and schedule
 Investment structure
• Private equity/debt
• Public grants, loans and tax credits
 Marketing plan
• Investors/Third-party developers

12. WHY BERRIEN COUNTY?
 Social/Cultural Development Need
 Brownfield Environment
 Confluence of Support
 Local, State and Federal Governments
 Private Sector Support
 Shortage of Waterfront Development Opportunities
 Burgeoning Chicago, Detroit and Indianapolis Second-Home
Markets
 Location…

13. THE ADVENT OF

14. THE SITUATION

15. ST. JOE/ BENTON HARBOR
 RACIAL DIVIDE
- St. Joseph 90.3% Caucasian.
- Benton Harbor 92.4% African American.
 ECONOMIC DIVIDE
- St. Joseph
Per Capita Income & Unemployment at par/or exceeding national average.
- Benton Harbor
Lowest Per Capita Income In Michigan - $9,607
Real Unemployment Exceeding 40%
 EDUCATIONAL DIVIDE
- St Joseph
Best educational system in the state.
- Benton Harbor
2/3rd of Workforce read 9th Grade Or Less.
Excess of 50% dropout rate.

16. ST. JOE/ BENTON HARBOR
POLITICAL DIVIDE
 Multiple City Governments
 Multiple Municipalities – Benton Harbor,
St. Joseph ,Stevensville, Benton Township,
St. Joseph Township, Shoreline.
 Fragmented Social Services
Multiple Police Departments
Multiple Fire Departments

17. BENTON HARBOR
GOVERNMENT
FINANCIALLY INSOVENT – TAX BASE
City Of Benton Harbor $79 Million
City Of St. Joseph $337 Million
HIGHLY POLITICIZED

18. ENVIRONMENTAL
CONDITIONS
STATE SUPPORT (1990’s) – In excess of
$30 Million
USEPA SUPER FUND SITE – Approx. $7
Million
CORPORATE CLEANUP – Approx. $20
Million

19. POLITICAL CLIMATE
SEVERE TRUST ISSUES
LEADERSHIP VACUUM
DYSFUNCTIONAL PUBLIC MEETINGS

20. SOCIAL CLIMATE
ANTI-GROWTH
RACISM
CIVIL DISTURBANCE (2003)

22. BUSINESS CLIMATE
COMMERCIAL VACANCY
 Downtown Benton Harbor – vacancy in
excess of 50%
SEARCH FOR BLUE COLLAR JOBS
UNATTRACTIVE PLACE TO ATTRACT
EMPLOYEES

23. TRANSFORMATIONAL
PROJECT

24. BENCHMARKS
EAST LAKE COUNTRY CLUB—Atlanta, GA
BAY HARBOR—Harbor Springs, MI
KOHLER—Kohler, WI

28. PARTNERS FOR CHANGE
COUNCIL FOR WORLD CLASS
COMMUNITIES (CONSORTIUM CORNERSTONE WHIRLPOOL
COMMUNITY DEVELOPMENT) ALLIANCE FOUNDATION
HUMAN CAPACITY ECONOMIC PHILANTHROPIC
BUILDING DEVELOPMENT ARM OF
- LITERACY WHIRLPOOL CORP.
- JOB TRAINING
- JOB GROWTH

29. OBJECTIVES
 Human Capacity Building
 Economic Development
 Increased Tax Base
 Physical Development
 Environmental Improvement
 Rebranding
 Jobs, Jobs, Jobs!!!!
 Education

30. CHALLENGES
 Land assembly—125+ Parcels
 Economy—Financial Crash 2008/Real Estate Bubble Burst
 Political—Dysfunctional Benton Harbor City Government;
Distrust with Benton Township
 State of Michigan appoints emergency financial manager
 Legal—Jean Klock Park
 Environmental—EPA Superfund Site, Soil Conditions
 Marketing/Branding

31. INVESTMENT OVERVIEW
 INFRASTRUCTURE INVESTMENT $89 Million
 TOTAL DEVELOPMENT INVESTMENT $424+ Million
 ESTIMATED INFRASTRUCTURE COMPLETION 2012
 ESTIMATED ABSORPTION PERIOD 2015- 2020

32. EARLY ORGANIZATION

33. RIVERRUN
CORNERSTONE CWCC
WHIRLPOOL CORP.
ALLIANCE (CCD)
EVERGREEN
DEVELOPMENT
COMPANY, LLC

34. ORGANIZATIONAL
STRUCTURE

35. CORNERSTONE CONSORTIUM COMMUNITY WHIRLPOOL
ALLIANCE DEVELOPMENT FOUNDATION
HARBOR SHORES
COMMUNITY
REDEVELOPMENT
PROJECT MANAGER – PROJECT FINANCE – LEGAL COMMUNITY OUTREACH.
EVERGREEN DEVELOP. CO. WHIRLPOOL CORP.. .
 Design & Architecture  Banking Relations  Zoning  Cornerstone Initiatives.
 Land Planning PNB  Entitlements  CCD Initiatives
 Environmental Morgan Stanley Chase  Litigation
 Entitlements Whirlpool Foundation  Property Acquisition
 Financial Management Berrien County Government  Developer Agreements
 Marketing & Advertising
 Sales
 Developer Recruitment

36. RESULTS

37. LAND PLAN IMPLEMENTATION
 500+ acre mixed use recreational/resort
 18 Hole Jack Nicklaus Design Golf Course spread across 200 acres
 826 Residencies
 2 Hotels:
-Golf and Beach Lodge 80 rooms
-Hotel/Conference Centre 350 rooms
 Indoor Water Park - 60,000 sq. ft.
 Commercial/ Retail Space – 43,000 sq. ft.
 Golf Club Structures - 22,000 sq. ft.

42. JOB CREATION
PROJECTED BREAKDOWN OF PROJECTED BREAKDOWN OF
CONSTRUCTION PHASE DIRECT JOBS PERMANENT DIRECT JOBS

43. PR/MARKETING ACTIVITIES
Media Coverage
Internet Coverage
Articles in:
– USA Today
– WSJ
– NY Times
– Chicago Tribune
– Major Magazines

45. COMMUNITY IMPACT
 Community spirit
 Dedication to working together
 Government reorganization
 Senior PGA 2012 & 2014 $20 Million Economic
Impact Per Year
 Job growth
 Whirlpool Expansion—dedication to longevity

46. WHIRLPOOL EXPANSION

47. PROJECT LEADERSHIP
SUMMARY

48. BOARD OF TRUSTEES
 DAVID WHITWAM (Chairman)
Leader
Directed Strategic Plans.
 JEFF NOEL (Chief Operating Officer) –
Development Leader
Directed Tactical Plans.
 WENDY CHESSER (Trustee)
Community Economic Development.
 MARCUS ROBINSON (Trustee)
Community Benefits, Support and Outreach.
 BLAIR CLARK (Trustee)
Whirlpool Corp, Senior Vice President of Strategic Planning.
 JOHN CAMERON (Secretary)

49. PROJECT MANAGEMENT:
EVERGREEN DEVELOPMENT
 MARK HESEMANN (Managing Director)
Project Vision
Developer Solicitation
Primary Liaison with Trustees
 BOB MCFEETER (Director Of Development)
Project Planning
Project Entitlements
Project Construction
Schedules & Budgets
 RON ENG (Director of Marketing)
Marketing Plan
Agency Relationships
 JEFF GILBERTSEN (Director of Finance)
Financial Planning
Accounting, Budgeting and Cash Management
Liaison with Whirlpool Foundation
Banking Relationships

50. LEADERSHIP CHALLENGES
Entrepreneurial Project within corporate
culture
Public-Private Partnership
Directing a team with different masters
Operating under challenging social
conditions
Operating under challenging economic
conditions

51. LEADERSHIP BEHAVIOR
 JEFF NOEL –  BLAIR CLARK –
Hand’s On Strategy Focus
Detail Oriented Analytical
Broad Foresight Strong Corporate Perspective
 MARK HESEMANN –
 WENDY CHESSER – Visionary
High Energy Highly Delegatory
Highly Communicative Public & Presentation Savvy
Encouraged Discussions Marketing Orientation
Good PR
 BOB McFEETER –
Task Oriented
 MARCUS ROBINSON – Detail Oriented
Friendly Persona Highly Administrative
Charismatic Efficient
Diplomatic/Political Operator

52. THE LEADER OF LEADERS
–
DAVID WHITWAM
 4th chairman of WHIRLPOOL CORP.
 Responsible for Whirlpool going from No.2 domestic appliance company
to No. 1 in the world.
 Leadership began when all factories were torn down and manufacturing
left . Whirlpool’s presence in the Benton Harbor area was transforming
from manufacturing to corporate headquarters.
 Envisioned HARBOR SHORES as enabler for community transformation.
 Corporate Visionary – taking company global, developing new product
lines(kitchen, garage etc).
 Multi-faceted, Excellent Communicator, Strong Community Spirit
, Compassionate, Strong Aura.

53. LEADERSHIP SUCCESSES
HARBOR SHORES:
 Investment deployed successfully
 Added tremendous financial value to the community
 Real estate and golf performance far excelled local / national comps
 Strong market reception/community approval
 Comprehensive community support
 Well positioned for future success
 Senior PGA Championship 2012 & 2014
 Important golf destination in the mid-west.

54. COMMUNITY SUCCESSES
 Enhanced co-operation between municipalities
 Strong community spirit
 “Can Do Attitude”
 Growth Focused
 Revenues for Benton Harbor increasing
- Golf Revenue
- Jean Klock Park Revenue
- Tax Base Increase
 Perception of Benton Harbor improving
 Transformation of the physical, emotional and social landscape of all the
communities

55. LEADERSHIP TRAITS

56. 1. It comes in all shapes and sizes.
There is no one most effective style,
but it must be customized to the
leader's individual strengths.

57. 2. The more complicated the task,
the more diversity is required
in leadership. Harbor Shores is an
excellent example
of multi-disciplinary
leadership requirements.

58. 3. Leadership is not about making things
move in the direction you see fit;
it is about focusing
on the goals and objectives.

59. 4. The most effective leadership is based
in passion for the cause. No matter how
seemingly insignificant the objective, give
it your all.

60. 5. Great leaders identify the talent
within each team member
and allow them to run with it...even if
they don't always agree so long as
they never lose sight of the goal.
“The greatest lesson in life is to know even
fools are right sometimes”
-Winston Churchill

61. 6. The leader keeps peace among the
team. Conflict must lead to collaboration.

62. 7. Leaders lead by example especially in
business ethics and integrity.

63. 8. Leaders are often quiet
and speak through listening.
9. True leadership is
grounded in process
that leads to
accomplishment.

64. 10. Leadership is communicative
and shares information.

65. 11. At the end of the day leadership is
always evaluated on the basis of
accomplishment. Accomplishment is
judged in many ways.”
“However beautiful the strategy you
should occasionally look at the results”
-Winston Churchill.

66. 12. Great leaders don't play politics.

67. 13. At the end of the day the leader must
weigh all considerations and opinions
of the team, then make and own the
final decision.
“The buck stops here!!”
- Harry Truman.

68. 14. A leader takes responsibility for
defeat and gives credit in victory.
“The price of greatness is
responsibility”
- Winston Churchill.