March 26, 2010 Letter

Chi Tetarton Alumni Letter – 446 Stanwood

March 26, 2010
Mark Caldwell
c/o Chi Tetarton Alumni Association
2431 Edsel Dr.
Trenton, MI 48183
Alumni Brothers of the Chi Tetarton Chapter of Phi Sigma Kappa:
This letter is being sent as a courtesy to make you aware of the course of action that the board of directors of Phi Sigma Kappa Properties, Inc. (PSKP) is taking with the property at 446 Stanwood, Kalamazoo, Michigan, as well as our collective efforts (PSKP and Grand Chapter) to assist the chapter in overall chapter management.

Last month, the PSKP board was given notice by the executive board of the Chi Tetarton Chapter that it will not be renewing its lease on the Stanwood property. The executive board stated the following reasons for their difficult decision:

  1. The Stanwood house is a financial burden to the undergraduate chapter as a result of the reduced income stream created when the lower bedrooms were removed;
  2. Western Michigan University no longer follows a formal recruitment system — freshmen have to find fraternities on their own which takes them exclusively to Fraternity Village Drive, putting Phi Sigma Kappa at a distinct disadvantage;
  3. The Stanwood house has a number of deferred maintenance issues which makes it an unattractive housing option for the members.

As a result of the chapter’s decision, the Stanwood house is currently without a tenant for the upcoming school year. Accordingly, a real estate broker has been engaged to offer the property both for sale and for lease as a way for PSKP to attempt to mitigate the financial
damage to the organization. The property is currently being operated at a deficit, and in the event of a sale it is unlikely that PSKP will receive funds in excess of its basis in the property.

While the decisions made by the undergraduate members have led to this decision, the PSKP board of directors does not hold a critical view of their decision. The current Chi Tetarton executive board has made a conscious effort to improve the chapter, along with our assistance and the assistance of the Grand Chapter. One example of this was taking the step of expelling problematic members.

Accordingly, PSKP and the Grand Chapter will continue to support the chapter by working with the executive board to secure a lease on a new property on or near Fraternity Village. In the true spirit of fraternity, PSKP wants to be a trusted advisor in the chapter’s quest to realize growth and success.

The PSKP board of directors understands that 446 Stanwood holds many fond memories for the Chi Tetarton alumni, but the chapter has spoken with a loud and unified voice, leaving little choice but to look for alternative scenarios with the property. PSKP thanks you for your support and any support you can provide the chapter during this challenging but hope-filled transition. Should you have any questions or concerns, please feel free to contact either one of us.

Most Fraternally,
Evan Prostovich                     Michael Carey
Director of Operations      Executive Director
PSK Properties                        Phi Sigma Kappa Fraternity
evan@pskproperties.org   michael@phisigmakappa.org
317-495-1746                         317-573-5420

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3 thoughts on “March 26, 2010 Letter”

  1. “in the event of a sale it is unlikely that PSKP will receive funds in excess of its basis in the property.”

    Exactly what basis did PSKP have in that property? There is no record of them having owned the property. There is no record of them having any debt on the property.

    The reader was led to believe that Phi Sigma Kappa Properties had a financial stake in 446 Stanwood.

  2. how come this letter was not written by Glenn Roby? He was the President of both PSKP and Droopy Corp. Instead, he directed all questions to the then 27 year old Evan.

  3. Michael Carey deceived the Chi Tetarton alumni into believing that PSKP had acquired the property, and was responsible for the mortgage on the property. The recorded documents do not support PSKP’s claim. The property was owned by Droopy Corporation, the successor to Housing Corporation, the longtime owner of the house.

    Chi Tet alumni were discouraged from getting involved and saving the property. Droopy President Glenn Roby had the green light to sell the property at the bottom of the market in 2010. An accounting of the disposition of the sales proceeds absolutely is warranted.

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