No clue

One that I know of, but I am not at to discuss it.

They are going to lose their house and that is it. Cannot afford what the price is.:(

Here's a thought. Have a lawyer (Preferably LXA) set up a corporation that owns real estate. Make the shares in the corporation eligible for retirement accounts - IRA's, 401k, etc. Market the shares to other LXA brothers.

There's a lot of LXA alums (like 150,000?) and quite a few would be willing to risk 5 or 10 thousand of their retirement money to see another building stay in the fraternity. Somebody is going to own these buildings, it might as well be brothers.

An alternative would be to sell to a sorority. Sororities like fraternity houses until they get too big and want to build. The typical sorority is 70 members (fraternities is 40) and their nationals have great housing corps that build fine new houses.

You can sell the house with the first rights to buy it back in a few years, when the sisters outgrow and build their new house. Yhey'll be glad to have a willing future buyer.

Found this on the Michigan State Lambda Chi Website- Sad.


Chapter Housing Update (5/20/08) - National's Refuse Gamma Omicron's Offer
Date: 5/19/2008 8:00 AM



Gamma-Omicron Zeta faces a crisis that could result in the loss of our historic 85 year-old chapter house. Please read the background information below and see how you can help.

Most of you are aware that in 1993 the local housing corporation transferred ownership of the 128 Collingwood Avenue property to the national Lambda Chi Alpha Fraternity. The property was transferred at-cost to the national organization for $300,000. The $300,000 paid off the original mortgage, renovations and back taxes which the house cooperation owed.

Since taking ownership, Lambda Chi Alpha Properties (LCAP) asserts it has lost a substantial amount of money on their entire 12 property portfolio. In conversations with Gamma Omicron Alumni, LCAP has stated that it has lost $15,000 annually on the East Lansing property over the last five years. The result of losses on the portfolio of properties is forcing LCAP to liquidate their entire portfolio of properties.

The Gamma-Omicron Zeta alumni were offered the chapter house at the price of $806,000. The alumni formed a committee to evaluate the purchase price. The committee is comprised of: Richard Rennell (Class of 1971), Jay Holland (‘73), Richard Page (‘77), Eric Pelton (‘84) Eric Novak (‘95), Jeff Gignac (’97), , Jeremy Mourey (’99), Steve Arndt (‘00), Brock Barczyk (’02), Doug Moody (’04), David Van Kerckhove (‘04), Steve Gonda (’04), John Claya (‘06), Ryan Williams (‘06), and Marcus Belanger (‘07). The consensus among committee members was the $806,000 asking price is extremely high based on market conditions as supported by an independent appraiser and the original terms of the 1993 sale.

The committee conducted due diligence and evaluated potential revenue on the property, current market conditions, had the property appraised, and investigated cost of renovations. Based on the aforementioned factors, the Gamma Omicron Alumni Association counter offered LCAP with a $300,000 offer. The offer was made with the knowledge that a minimum of $200,000 in initial renovations are needed to update the current chapter house. This counter offer was rejected and LCAP reaffirmed their $806,000 offer and will be listing the chapter house on the open market June 1, 2008 if an agreement is not reached.

Alumni are now faced with the dilemma of either paying above market cost for the chapter house we have occupied continuously since 1927 or risk losing it on the open market. We are seeking a minimum of $650,000 in private alumni funding to ensure that the house stays in the hands of the Gamma-Omicron Zeta. Updates on this topic can be found on the local chapter webpage http://www.msulambdachi.org.



In ZAX,

Gamma-Omicron Zeta House Purchase Committee





How You Can Help:

(1) As soon as possible, write the Grand High Zeta and voice your concern with the process. Letters can be mailed to:

Grand High Zeta
8741 Founders Road
Indianapolis, Indiana 46268-1389

(2) Immediately call and/or email Executive Vice President Bill Farkas at bfarkas@lambdachi.org and (317) 803-7312



Click to see further details, updates, and to discuss this housing situation with other Gamma Omicron Alumni members







Join the Gamma-Omicron SAVE THE HUT Capital Campaign:

(1) Donate towards the “Gamma-Omicron ‘Save the Hut’ Mortgage Fund”. Contact John Claya at (248) 881-4653 or john.claya@gmail.com with your donation intent by June 3rd, 2008.

Gamma-Omicron needs to secure a minimum of $650,000 in private funding to make a down payment on a mortgage, have initial operating funds to manage the property, and perform critically needed renovations to portions of the existing structure.

Awards such as naming rights for individual and common area rooms will be available to the highest donors, as well as a permanent plaque of donors who participate.

2) Donate to a specific renovation project:

Kitchen Remodel - $46,600
First and Second Floor Bathroom & Shower Room - $54,300
Basement living room and dining room - $25,100
Stairwells - $28,000
Replace interior doors - $23,600
Paint, carpet, tile in common areas - $15,000
Allowance of miscellaneous repairs - $19,000

Please donate on the website or make checks payable to Gamma Omicron Alumni Association and mail to:

Gamma-Omicron Zeta House Purchase Committee
C/O Eric Novak
7200 W. Saginaw, Suite 1
Lansing, MI 48917




Please note that at this time, donations will not be tax deductible. The Gamma Omicron Alumni Organization is currently filing for 501c3 status, but it is not in place at this time. To arrange large gifts with restrictions and/or stipulations or for any other questions, please contact committee treasurer John Claya at (248) 881-4653 or john.claya@gmail.com

Yeah;

That is a real bummer, I hadnt heard anything about this situation outside my own chapter having it's house put on the market. And the whole furor over this story sort of subsided after a while, I figured people should know about this. In fact, a large part of this article was about writing letters of complaint to the GHZ etc.

Since this thread was brought back up, LCAP is History as many may know!

Is it being handled properly, no!

LCAP was a great idea and not properly run no matter who was in charge.

It became a cluster fu*k up! Admit it, we know it as well as others of us that know it!:mad:

I have been in contact with Brothers who have lost or are losing houses, not Brotherhoods. Can it kill those chapters, hell yes!

Am I happy, hell I no and I am like you Pissed:mad: You bet

your ass I am!!!

I feel like our Fraternity has let us as Brothers down!:mad:

From what I am gathering, IHQ is dumping property at the harm of chapters.

Is this helping us, NO!

Am I happy, of corse not and have tried to eplain this to IHQ! Are they listening, I hope so!

You can get on the IHQ site and make your voice heard instead of just complaining here on and open web site!

Tom, I agree 100%.

I hate to say it at this point, but I said all of that on these forums 4 years ago. The writing was on the wall.

AN IDEA!

How about we start an online petition? It would be MUCH easier to send all the chapters links to it, and it would be one source to have HQ hear our voices!

Let all brothers and alumni sign an online petition.

Also, I would like to praise GOZ for getting this going and trying to raise the funds. I wish Gamma Zeta was as well organized. I envy and admire your efforts.

I think it is interesting that the LCAP dump of properties avoids one key item- the general fraternity meeting (be it GA or Leadership Seminar) in the summer. Look at the dates for how this was handled. The notices that the houses were being unloaded were sent to alumni about 6 days before thanksgiving in the fall, giving just about no warning to anyone to prepare for this- this date is also signifigantly after GA. Now they seem to be asking for above market prices (on houses that were basically given to them in the first place years ago) to cover for their own negligence; and note the deadline in the note from Michigan State's letter- June 1rst.

Which I believe is before GA so that the general membership that votes on items of interest to the general fraternity cannot be made part of that decision making process. I would think that if you could talk to all of the LCAP chapters and see the big picture, it would be shockingly bad/embarrassing, and a vote to suspend these sales pending a vote of the general fraternity would force some sort of action to make the prices more reasonable to let our chapters hold onto these homes.

Really, the more you read the Michigan State letter, the more angry anyone associated with the fraternity would get regarding how chapters that trusted Indianapolis are now being treated. And as to Tom's point about this being on an open website- good, it should make people uncomfortable, upset and embarrassed to read about how lambda chi's are treating each other. Perhaps putting some small public spotlight might force people to do the right thing when they otherwise would not do that.

And one more thing- if they were supposedly losing 15 k a year for years on the Michigan State house, then what business would continue to run that way? Why would you not change the structure of the leasing/pricing etc. to try to not lose the same amount every year?

"And as to Tom's point about this being on an open website- good, it should make people uncomfortable, upset and embarrassed to read about how lambda chi's are treating each other. Perhaps putting some small public spotlight might force people to do the right thing when they otherwise would not do that."

Very well said Leno.

What is right, is right. What is wrong, is wrong. It doesn't matter if it's LCAP, HQ, or the President of the United States. Once we start refusing to address issues in public simply for the "general good", we may as well duct tape our mouths shut.

Who is with me on the online petition? It may be the quickest and cheapest way for us to gain support from the alumni and brothers throughout the United States.

Some way for everyone to get together and tell HQ that what is going on is wrong.

We could send email links of the petition to every chapter, or one liaison in each chapter, to have their membership sign it.

As far as wording it, I would have no idea.

I've said it many times on this forum before; if we don't start QUESTIONING the people in charge, or reviewing HQ's policies, or refuse to turn a blind eye to a topic, then we end up in a mess just like this.

You have to remember, HQ has a serious conflict of interest. The same people that are supposed to put the brotherhood first, also have to make sure that the fraternity is in the black so they can get paid. What is good for the fraternity, isn't always good for HQ. What is good for HQ, isn't always good for the fraternity.

my voice heard with IHQ and feel as I was told that the Chapters would be offered a better deal for taking back the houses. This did not come from IHQ but someone else.

I cannot remember where I saw this on a post, but LCAP was losing money each month I beleive it said @ $15,000.

Now, was this from all chapter houses or just GO?

If that was the case, then why did it go on for so long!:rolleyes:

It seems like LCAP spent a lot of money on renavations and were they needed? Un. Mo. took it in the shorts and the house was sold from under them.

Shippensburg got a house from Acacia I think and a lot of the Brothers Actives and Alums spent a lot of time and sweat and I would bet some of their own money in getting back into shape.

One of our most historic houses, Gamma, UMass was taken away from them and it sounded bogus with some of the reports I have heard.

As GammaZeta so well put, it is what is good for IHQ may not be good for the Brothers. But remember, it is The Brothers that make LXA!

I am so very disappointed in reading about houses being lost and may as well just kill that chapter!

It is very plain and simple.

LCAP allegedly put tens of thousands of dollars into "renovating" the Gamma Zeta house.

Go up there TODAY, RIGHT NOW and SHOW me where all this money was spent improving the house.

Bad management, no oversight, and contractors more than willing to take advantage of an absentee landlord.

I have received some emails and one mentions the word transperancy from what we get from IHQ.

I cannot figure out the word, but in my estimation, it boils down to a lack of knowledge that is passed on to us as members. Oh, I guess that is what it means!:rolleyes:

We all know we are a secret society, but when did it become so secret from we as members.:mad:

As I mentioned and as GammaZeta said about funds going for interior renovations. These costs seem to be very extensive and costly. Why and where did the money go and to who?

While I think that there are more open channels there still is not enough and I ask why?

While none of use are involved in the day to day operations, where did all of this money go and why?

Open site, yes it is, but this gives us and outlet to ask questions.

What is going on and why!

As all know, there is no one who has more PGG blood running through his veins than me! But I really want to know what the hell is going on!:mad:

I do not need the pablem reports, I want to know the truth!!!

That is my right as a Brother!

PEOPLE WAKE UP!

THIS FRATERNITY IS MADE UP OF THE BROTHERHOOD, NOT HQ.

If HQ was to disappear tomorrow, we would still have our brotherhood. If the brotherhood was to disappear, so would HQ.

THIS IS WHAT WE DO:

Demand that HQ post ALL financial reports on the website. Expenses, donations, money taken in, assets, property, EVERYTHING.

MAKE THAT AVAILABLE TO THE MEMBERSHIP.

IT'S OUR MONEY, IT'S OUR FRATERNITY.

At this point you can see that by avoiding the scrutiny of the General Assembly Audience that there is something rotten here. From the surprise "pulling the rug out from under us" letter right before a major holiday to what I've seen with how this was handled at Shippensburg, and now Michigan State as well as Umass nothing has been handled in the best interests of individual chapters or the members in those respective memberships.

With all this talk of higher "core values" and being "true brothers" lets see some where it counts on the bottom line. Sell Michigan State their house at a price they can afford after having it analyzed by an estimator and a group of 12 alumni spanning 40 years.

LCAP is the Enron of this fraternity, and I regret giving it my support and trust, as obviously just about everyone that has said anything about it.

I copied the comments from the C&C article earlier this year- quite a few damning comments- I did edit out Earp's two comments- they were basically not understandable- Tom please understand!


Robert Teglia Says:
February 2nd, 2008 at 3:30 pm
University of Michigan, Michigan State, South Carolina–all major universities. Sadly, this is another indicator that the fraternity movement continues to lose steam in America. LCAP’s willingness to sell these properties to other fraternities or sororities on campus is a strong signal that all is not well with Lambda Chi Alpha.

Bob Koch Says:
February 2nd, 2008 at 3:55 pm
To Brothers Tom Earp and Robert Teglia:
While the Cross and Crescent article was brief please understand that much is being done by the LCAP board, and particularly Mike Smith it’s chairman, to work with the local alumni groups where LCAP properties exist and return those houses to the local brothers. Certain of these properties do not house Zetas currently.

Shane Foley Says:
February 2nd, 2008 at 4:33 pm
Without commenting on what is going on with LCAP, I will say that there is a significant correlation (yes, I crunched the numbers) between chapter size and a chapter having a house. This does NOT mean that chapter houses make larger chapters. That point being made, there is value in members at all levels recognizing this relationship.

Art Hebbeler Says:
February 2nd, 2008 at 4:44 pm
What I am reading in all this is another example of the General fraternity taking an action to gain control (owning chapter houses), and then, realizing that a mistake was made (or, more likely, poor prior planning), taking near-immediate action to bail out on the chapters. After telling chapters “what a great deal this is for everyone,” the chapters (and their alumni) are now being told, “You now have a handful of months to buy your chapter house back.”

I am disappointed at the short-sightedness that appears to be at work here.

Rick Hambright Says:
February 2nd, 2008 at 10:29 pm
I like how all of a sudden they figure out LCAP is millions of dollars in debt and the only way to get out is to liquidate all properties. Thanks a lot. They totally screwed over the chapters involved. No one saw this coming until now?

Roger Pruger Says:
February 2nd, 2008 at 10:53 pm
Its funny how LCAP was so gung ho about us handing over our chapter houses, about the economies of scale, and the substantial savings that should have taken place. Poor money management, negotiating skills with builders, and lack of sound leadership by LCAP doomed what should have been a very successful and finacially profitable business model. The property, excluding building in Oxford is likely worth $500,000 plus dollars without the facility. LCAP exceeded their budget of rehab by 25% with renovations, and now are begging us to take the property back and the mortgage, even though we had no mortgage when we gave them the house. LCAP and the overall leadership failed to listen to our local alumni members and their concerns about the chapter. They failed to recruit enough new members when we came back and called it a close tight knit brotherhood, they failed to manage their budget, and they turned our house into a “Nursing Home”. Frustration and embarassment has lead to many alumni walking completely away from a group they really loved.

I wouldn’t go to war without soldiers and a former general, yet LCAP jumped in without those individuals who have worked in property management or had a clue as to what was going.

Lambda Chi Alpha has hung us out to dry.

Todd M. Curro Says:
February 3rd, 2008 at 7:13 am
While the LCAP directors have my utmost respect, I was rather alarmed when I first heard about LCAP, and felt that the Fraternity was getting in over its head by branching out into property ownership at the Chapter level.

This is a serious setback not only for the Fraternity at the International level, but also at the local level for those chapters that may soon be homeless.

Todd M. Curro
B 1233 (Maine ‘95)

Gamma Zeta Says:
February 3rd, 2008 at 8:46 am
Well, the LCAP article is not 100% accurate.

The Gamma Zeta alumni ARE interested in purchasing back the property. Only we do not have the means to carry it for very long, and we would have to take out a mortgage to purchase it. With no recolonization on the horizon, we wouldn’t have the means to keep the property, and we would end up selling it.

So it doesn’t make much sense for Gamma Zeta to repurchase the property from LCAP only to turn around and sell it. We hope to work out an arrangement with LCAP that would essentially cut-out the middle-man (Gamma Zeta).

If something is not worked out, Gamma Zeta would indeed purchase back the property and sell it.

It is a shame that our first chapter house ever will be torn down.

Claud Erickson Says:
February 3rd, 2008 at 4:30 pm
LCAP is a business, and nothing more. At Michigan State, they have put nothing into the house since buying it from the local chapter during the 90s, yet they are asking a ridiculous (not negotiable) price to buy it back. If Al Queda was looking for an East Lansing fortress, LCAP would sell our house to them in the blink of an eye if the price was right.

Alan Garber Says:
February 3rd, 2008 at 6:34 pm
I am truly sad to hear about this decision. Any hopes of bringing back Lambda Chi to Colorado State University are now quashed. Without a the fraternity occupying the property, it surely will be sold.

It’s really tough reading our Creed and not think that maybe things are not going well for the Fraternity as a whole. Has Lambda Chi lost it’s faith and hope?

Chris Dodd Says:
February 3rd, 2008 at 9:28 pm
Few points that should be pointed out: LCAP dealt with less than approx.475 brothers in total - so while we spin our wheels over physical plants, what about the other 9000 men that deserve the attention, money and support from IHQ that is being funneled into the failing LCAP; if the General Fraternity continues to pour money into a ill managed and executed housing plan, what parts of overall fraternity operations do we put on hold or discontinue? How many expansions do we put off. I never heard anyone at HQ say this was a good situation. We have to acknowledge that LCAP is an open wound bleeding money. But it seems the General Fraternity would like to operate in the black and avoid what we heard about from the staff that operated in the red year after year. Finally I would caution all brothers to do a little homework and call 8741 Founders Road sometime, things are not bleak at all; a sold out winter retreat two weeks ago, close to 800 men at the leadership school last summer and campuses asking for us to return because of the new True Brother Initiative. Let us remember to celebrate that recruitment is up, being a consultant is an honor again, and advisers can be trained for free with quality education. And I thought it was cool when our consultant told us ALL manuals are being professionally redone in one year’s time (when they sat unchanged since the eighties up until now); with consistency in recruiting with values, educating with values and HQ teaching quality pre-initiation again, we cannot lose! To wrap up; I agree that LCAP is a horrible nightmare; but that is a bitter pill because none of us paid attention when the previous LCAP Board made some pathetic decisions that has held us all back (no wonder the power chapters like Arkansas sent them packing when they tried to get their house). I think the guys at HQ will make sure there are no “homeless” chapters bound for closure and we will be stronger in the long run. Keep the faith - I have called and talked to consultants and advisers who tell me this is one of the most exciting times to be a brother. So instead of acting like chicken little, call the staff, ask the hard questions, get the answers and celebrate the good - and our Creed will remain strong

Larry Brinkley Says:
February 4th, 2008 at 9:23 am
Promises, promises that is what we got! We listened to LCAP and the fraternity say how great it would be to have the international fraternity run our chapter house. Listening to them we were going to have the best house on campus. Instead the brothers at UNT saw their house left to fall down around them. I agree that it is time for LCAP to go away, but I don’t agree that the zetas that entrusted houses to our Headquarters to take care of our properties should now find themselves deep in debt and struggling to figure out how they will keep the properties. I think the fraternity should take responsibility for its actions. If you make a mistake you don’t put it off on someone else to deal with if you are a true brother.You deal with it. I beg to differ with brother Dodd that it only affected the men at those chapters. It effected 1000’s of brothers unless I like my other brothers are no longer counted among the faithful. So Arkansas was lucky but that does not make them any better than our zeta. Lambda Chi Alpha has long stood for the rights of all brothers including the minority as well as the majority. We all should be treated equal. We will get through the crisis, but I think the fraternity should take some of the responsibility and help the zetas involved instead of putting all the mis-management problems back on them.
A vote for LCAP at one point was for progress! Now the vote is to get rid of a virus. It fed on us and spent a lot of money and we now have nothing to show for its effort but ill will.

I agree that the undergrads are still learning great things under the direction of Bill Farkas but lessons don’t stop at your senior year.

Larry Brinkley
IZZ 433

Tim Ferry Says:
February 4th, 2008 at 1:38 pm
LCAP was run as a business, but not very well. Despite recommendations from chapters and alumni, they treated all of their properties vitually the same. Their downfall was not managing EACH property.
Also, I believe there was some politics with at least one of their properties: due to local alumni pressure at one school, LCAP was forced to cover the loss of a half-empty house for years. My own chapter had under-occupancy, but it was made clear my chapter would cover that cost.
Neglect and apathy can ruin a fraternity, one chapter at a time.
Tim Ferry
Phi Tau 285

Justin Leisure Says:
February 4th, 2008 at 3:21 pm
LCAP, like any business in default, needs to be held accountable. The board of directors have mismanaged funds; funds entrusted by countless alumni and active brothers. They made countless misrepresentations, about their abilities to manage properties, their financial standing, and on and on. Now many chapters will be forced to sell their homes during a down market. Much like a chapter has to answer for their shortcomings, HQ & LCAP should as well. A dissolution plan is only the start.

Jim Hart Says:
February 4th, 2008 at 6:54 pm
I built our fraternity house some 35 years ago as an undergraduate with the help of our own Local Alumni House Corp. Frankly we beleived that only the “privileged” few like Butler were able to access LCA money. As a small House Corp still in existence, we have been through good years and bad ones. We have the same troubles about balanced budgets and the like…so I am absolutely shocke that a much larger professional team couold not manage the LCAP well enough to stay in business. Mostly fraternities have not been able to keep pace…financially at least…with the changing living arrangements of college students (I have a son who is a LCA now). Much of that blame lies with the university communities who subsidize every type of housing except the Greek experience. That is the real answer…to become more of an integral part of the educational community…insted of the universiities merely benefitting from our presence. Indeed our primary “competition” may be found right in the university administration looking to offer more out of the box experiences…that I got only from being Greek many years ago.

Surely the LCA experince must be good enough to attract more and better young men than we are doing, and I wish our leadership was doing a better job. Selling out to the Sig Ep’s, or Sigma Chi, etc. never seemed like somewhere we should be!!!

As an alumni….why would LCAP want our House Corp to be in a business that they themself could not run successfully?

Mikel McMullen Says:
February 5th, 2008 at 9:02 pm
Lame decision, lame past management. Couldn’t state any better.

T. Healy Says:
February 5th, 2008 at 10:59 pm
Clearly the Alumni recognize that LCAP never delivered on their promise of quality housing leveraging expertise, shared purchasing power, better management, and improved communication and relationships with the Active Chapters. Their cut and run strategy is not sitting well with Alumni. Until we Alumni vote with our checkbooks and advise National that they will no longer be receiving contributions from us, they will do nothing to reverse their position. We need to realize that our loyalty needs to be to the local chapter and the local Alumni Board and not to National. They are abandoning us at a very difficult time yet asking us to bail them out.

National will never see a dime from me.

Concerned Brother Says:
February 6th, 2008 at 10:41 am
Okay so what the “New Plan”? Quit, give up and liquidate all LCAP owned properties? Some plan you have there, very nice. That will really help some brothers out.

First off, there’s no way all the properties owned by LCAP were losing investments. I’ve seen the way they’ve operated and the major problem is the way LCAP operated and charged expenses. They would simply write off unpaid rent as overhead instead of holding individuals and chapters accountable. LCAP also had huge bills for overhead that made no sense in the real business world. The expenses of actually running LCAP was more then the profit of all chapters. LCAP had no reasonable structure in place that could actively monitor individual properties expenses vs. profits while keeping overhead in check. What a joke.

I simply have a hard time seeing that all of these LCAP properties lost money. Why don’t you publish some real numbers? Why not figure out what properties lost money, which ones were profitable and support the chapters that make money? Why not keep the profitable ones operating instead of cutting the whole program?

The way LCAP was run is a dishonor to LXA and to all the alumni/undergrads who put there life and investments in LCAP hands. Wouldn’t it make more sense to liquidate the properties that were losing money and keep the profitable ones running? It’s a disgrace to our letters that LXA that they would just quit give up on so many dedicated alumni and undergrads. This is just another example of how out of touch nationals are with local chapters. If LCAP had chapters running in red why would they continue to fund them after years of loses instead of dropping individual chapters along the way while picking up profit generating chapters?

Thank for running over budget on repairs at numerous chapters, thanks for having ridiculous overhead for unpaid rent which should have been sent to collection, thanks for carrying losing chapters for so long it actually crushed the entire program, thanks for wrecking a number of local chapters and alumni groups, thanks for forcing local chapters into extreme debt by charging over market prices for houses they can’t afford in a bad market.