Buying the house back from LCAP

spartanmoose · #1 03-21-2007, 03:21 PM

Here at Gamma Omicron,(Michigan State) LCAP has owned our house since 1993. We are making some great steps in a positive direction and feel that LCAP is just holding us back.

This saturday I have a meeting with the Alumni board and this will be one of the biggest issues on our agenda.

I was wondering if any chapter out there has bought their house back, and if they did, I would like to know some pointers. This seems like a big hill to climb, but it for sure needs to be done.

Matthew Moose
High Rho
ro 2140

GammaZeta · #2 03-21-2007, 03:46 PM

Umm...

I'll try to put this the nicest way possible; get ready to grab your ankles.

I PM'd you Moose.

Tom Earp · #3 03-21-2007, 04:54 PM

Quote:

Originally Posted by spartanmoose

Here at Gamma Omicron,(Michigan State) LCAP has owned our house since 1993. We are making some great steps in a positive direction and feel that LCAP is just holding us back.

This saturday I have a meeting with the Alumni board and this will be one of the biggest issues on our agenda.

I was wondering if any chapter out there has bought their house back, and if they did, I would like to know some pointers. This seems like a big hill to climb, but it for sure needs to be done.

Matthew Moose
High Rho
ro 2140

LCAP is like any institution when it comes to property.

Find out what the payoff is and go from their. If you need to get a loan, also have that information for pay off.

LCAP is a lease holder of trust, not a captive of property.

If they fight it, then find out why. Find out who is fighting it and why.

Ducks in a row. LXA is not in the business of owning property but as I said, it is supposed to be in trust for the Chapter.

Please let us know what the status is!

GammaZeta · #4 03-21-2007, 04:56 PM

Respectfully disagree with you on every single point you brought up Tom.

Tom Earp · #5 03-21-2007, 05:40 PM

And why?

Each situation is going to be different isn't it?

GammaZeta · #6 03-21-2007, 06:10 PM

Well, no Tom, each situation is not that different.

I am curious, has LCAP ever sold back a piece of property?

First of all, it was made very clear to me and my brothers on several different occassions that LCAP is a business, and although LCAP does have Lambda Chi Alpha in it's name, that it is in no way associated with the fraternity.

With that in mind, LCAP needs to make money. There are salaries and expenses to be paid.

If the house that Moose mentioned is profitable, or will be in the future, why would LCAP sell it?

Now LCAP claims to not be associated with LXA, that brotherhood isn't brought into it, yadda yadda yadda. But amazingly, LCAP is directly tied in with operations at HQ when it feels it is convenient. HQ can have a much tighter grip over a chapter if LCAP owns the residence.

See, LCAP will ALWAYS do what is best for LCAP, not the chapter. I can't really blame them for that either. On paper, it is a good theory. In reality, it doesn't work. Sure, a self-sustaining organization to provide housing accomodations for LXA chapters sounds great. But it is not the reality.

Pretty soon, you have maintenance costs. A chapter goes under. Taxes go up. A new staff member is added. Travel is more expensive. Some people don't pay rent. There is a legal dispute with attorney fees. Heating costs skyrocket. They can't fill all the rooms. There was an accient at a property and insurance goes up. I can go on and on. What happens is LCAP, which ideally started out as non-profit, etc., soon has to make up costs. So now the focus becomes less on helping a chapter and more on becoming viable. Staff members don't work for free, and I'm sure HQ doesn't have money to burn.

I don't blame LCAP or the staff. The staff members have families and have to put clothes on their kids backs.

I blame the system itself. What SHOULD have happened was to have a property management company come in to run the property. Leave the LXA part out of the whole equation.

Now, what is the motivation for LCAP selling back Moose's house? If it is profitable, why sell? If it is not, will LCAP take the loss? Nope.

Now, with the economic part out of the picture, LCAP selling the house would give them less of an influence on a chapter. In many instances, a house can make or break a chapter. LCAP and HQ can now put restrictions, quotas, rules, regulations, goals and other factors to directly tell a chapter how it should be run. The chapter loses any and all independence once the house is run by LCAP.

I'm not saying LCAP is a bad idea, just that it needs to be re-evaluated and reformed.

Tom Earp · #7 03-22-2007, 02:31 PM

I am not sure, but LCAP owned the Arkansas Un. house and rented it until the Zeta could be re established. I would hope there is someone on site who could confirm if the Zeta got the house back under their control.

The Un. Mo. house was taken over and finally sold. The Zeta at the moment is renting the SX house until they return to campus. Then, who knows?

I do not know for sure if LCAP is a major money making group, but caretakers of property until the time that the Zeta can take over control

At one time, Zeta Houses were signed over to IHQ in case something happened to said Zeta. That has since long gone by the wayside yeras back. IHQ is not in the overall business of owning property, but as I said a care taker position