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