Don Ryan CEO called the Bluffton nonprofit a ‘white’ incubator. He was fired the next day
One day after the Don Ryan Center for Innovation’s CEO referred to the nonprofit as a “white” incubation center during a board meeting, the town of Bluffton terminated his contract.
The town’s decision in October to oust Mike Levine, an independent contractor who had overseen the business incubator and town of Bluffton department since 2019, came two months before Levine’s planned retirement in December. David Nelems, the center’s vice president of innovation, became interim CEO after Levine’s exit.
Emails and contracts obtained by The Island Packet and Beaufort Gazette show that Bluffton Town Manager Stephen Steese informed Levine he was being terminated in an Oct. 15 letter. Bluffton Town Council members and senior employees were notified the same day, but there was no public announcement of Levine’s departure.
Levine’s termination appears to be related to a comment he made during a lengthy discussion at the Don Ryan Center’s board meeting on Oct. 14 where he classified the organization as “white.” The comment was about whether the center should offer its business mentors to another organization that works with Black business owners.
Attempts to reach Levine for comment were unsuccessful Tuesday.
Steese, reached by phone Tuesday, said he would not comment specifically on what led him to terminate Levine’s contract, but said that the Oct. 14 meeting “did play into” the decision and expedited it.
The Don Ryan Center is “set up to be a tool for anybody and everybody,” he said. “We have a diverse community, we have a very diverse economic base in this town, and the goal for that organization is to work with anybody.
“We felt that wasn’t being portrayed by the Don Ryan Center. That’s why we took the action we did.”
Asked if he had any comment on Levine’s statement during the meeting, Steese said: “The action we took would outline our opinion on the statements made.”
Nelems, the new interim CEO, said he did not want to comment on what Levine said. He emphasized, however, that the Don Ryan Center is a diverse organization.
“We have people from all walks of life,” he said. “It doesn’t matter — race, color, creed, religion — we just want what’s good for Bluffton.”
Bluffton Town Council member Bridgette Frazier, whose organization was the focus of Levine’s comments, did not return a call and text for comment Tuesday.
Bluffton Mayor Lisa Sulka, in an interview with a reporter, at first said she didn’t remember why Levine was fired and referred questions to Steese.
Asked if Levine’s contract was terminated because of his comments during the Oct. 14 meeting, Sulka said she was not at the meeting, but had heard that Levine was not taking the town’s feedback well in regards to working with other business incubators.
In reference to Levine’s comment about the Don Ryan Center being a “white” incubator, Sulka said his words were “very disconcerting.”
“Some people speak without a filter,” she said. “Those were not words that were received well.”
The Don Ryan Center was created in 2012 to provide resources, education and work spaces to help local start-up companies. Its board of directors is made up of 10 prominent residents including Sulka and Palmetto Electric Cooperative President and CEO Berl Davis, who serves as chair.
What did Levine say?
At the Oct. 14 meeting, the board members discussed whether to allow the Bluffton MLK Observance Committee — a tax-exempt organization led by Bluffton Town Council member Bridgette Frazier that, among other initiatives, is intended to support Black businesses — to use the services of the Don Ryan Center’s business mentors.
Near the end of the lengthy discussion, Levine made it clear that he did not want to be involved in the conversation and said he was recusing himself from the debate, according to a video recording of the meeting.
“I prefer, personally, not to be involved in this conversation at this point — reaching out to their executive director or reaching out to Bridgette,” he said. “I think, I’m sure, I do not want to get involved in this (potential) conflict between two incubation centers — one Black, one white in the small town of Bluffton.
“I’m going to recuse myself from being involved in this discussion and being involved in any next steps. If one of the board members would like to take that on, I’m fine with that. If you want to wait until the new CEO comes on, I’m fine with that. But I know that I do not want to be involved in this.”
One board member, whose name does not appear in the video recording, immediately responded that Levine’s classification of the Don Ryan Center as “white” was not accurate and reminded Levine that the board meeting was public.
“The DRC has had board members that are different races and ethnicity,” the board member said. “I would say that’s probably not a fair statement...The DRC is not a white entity that’s making a decision....”
Levine responded that the MLK Observance Committee is a “Black incubator.”
“Oh no doubt about that. That’s important,” the other board member said. “But I think it’s important to recognize that we’re not catering to one specific race or anything. I just would say that we’re as open to a black entrepreneur, anybody that wants to come in and be mentored, so I would say it’s important to remember that.”
“That’s true,” Levine responded. “I don’t want to be involved in it, though.”
The next morning, Steese, the town manager, emailed Bluffton’s mayor, four council members and two assistant town managers that he had terminated the town’s contract with Levine.
Mayor Sulka, less than 30 minutes later, responded: “Quick response and I so appreciate how quickly you handled this.”
Council member Frazier, the next day, responded: “Thank you Stephen.”
Levine’s contract with Bluffton
Records obtained by the newspapers show that Levine worked as an independent contractor with the town of Bluffton under a company named Coastal Creations of HHI LLC.
The town’s three-month contract with Levine, first signed Aug. 27, 2019, was extended five times and was set to expire in 2022.
However, on Oct. 6, Levine notified Steese via email that he planned to retire on Dec. 31. That decision was officially announced at the Oct. 14 board meeting, in which Levine stated that he would attend one more meeting before his retirement.
One day after the meeting, Steese terminated the contract, and Nelems became interim.
In his termination letter to Levine, Steese said that the town would continue to pay Coastal Creations of HHI LLC for 30 days — until Nov. 14.
In an interview with a reporter Tuesday, Steese said the town planned to begin the hiring process for a permanent CEO in late winter or early spring.
