I knew I'd find this hornest's nest on the Old Lambda Chi Wayback Archive. Former LCAP officers & directors should be held personally responsible for all of this.
http://web.archive.org/web/200611011...DMEETING_ID=52
LCAP Report Joe Klimek presented the LCAP Report. The report indicated that LCAP continues to contribute to the Fraternity through increased membership at LCAP chapters. LCAP chapters grew by 22% in FY2004 and 22% in FY2005. The growth is directly tied to LCAP's key performance indicator of occupancy rate. A total occupancy rate of 85% across all LCAP properties is needed to break even and LCAP expects to hit that goal in FY2006. Some locations that continue to under perform are now being considered for liquidation with Ohio State recently being sold and Montana State being placed on the market this summer. Dr. Minasian contested the ability of LCAP to achieve its performance objective. Joe Klimek indicated that leases were secured for all but one property for the fall. The sole remaining property was in summer recruitment and receiving LCAP and Fraternity staff support to improve recruitment and increase occupancy. Emotions of key alumni have prevented LCAP from making effective business and real estate decisions to date. That interference has contributed to LCAP's difficulties. Ted suggested that if the GHZ, EVP or Joe get into a position where they need to take action on any particular property, then the GHZ will step in to see that the transaction takes place. Bob Alexander summarized that there is a property on our books and due to the individual alumni volunteers of that chapter there are issues connected to the transaction. We have not chosen at this point to handle it as a business issue. As a result the Fraternity and LCAP continue to lose money on that property. The LCAP debt to the Fraternity remained at approximately $425,000 in fiscal 2005. This debt was the result of Fraternity charges to LCAP for staff, overhead, and some additional working capital required over the first 5 years of operation. The debt is not defined by a formal note and has no set repayment terms. Judge Terry Means suggested that the debt be formalized with a demand note to demonstrate that the board is meeting its fiduciary responsibility. The Educational Foundation has formalized its debt agreement with LCAP when it provided an additional $250,000 of working capital to LCAP during the current fiscal year. The note is an open line of credit with a term of 3 years. There is a consensus of the board, that at the next meeting, we invite Joe, Larry, or the EVP to provide updates and especially help us frame the issue regarding the Michigan chapter house.