This is the city of Kalamazoo’s record re: the house. There are probably some noteworthy events to be mined from this.
Excerpts from a “Chapter Update” in the Chi Tetarton Newsletter December 2013.
For the past several years we had slowly chipped away at the houses [sic.] overall debt and this past semester we have nearly erased it entirely.
Also in big news for the fraternity, we have secured a house on Fraternity Village Drive for next year. It has been the Delta Sigma Phi fraternity house for the past several years. The house is large enough to accommodate 18 brothers and has a big social room and backyard.
Droopy’s renewed authorization to operate as PSK Housing Corporation expires unless renewed.
Droopy is dissolved.
|ID Num: 782521||
|Entity Name: DROOPY CORPORATION|
|Type of Entity: Domestic Nonprofit Corporation|
|Resident Agent: WILLIAM C. VOGEL, III|
|Registered Office Address: 446 STANWOOD ST KALAMAZOO MI 49007|
|Mailing Address: 104 W FOURTH ST SUITE 333 ROYAL OAK MI 48067|
|Formed Under Act Number(s): 162-1982|
|Incorporation/Qualification Date: 8-25-2003|
|Jurisdiction of Origin: MICHIGAN|
|Number of Shares: 0|
|Year of Most Recent Annual Report: 10|
|Year of Most Recent Annual Report With Officers & Directors: 10|
|Status: AUTOMATIC DISSOLUTION Date: 10-1-2013|
The biggest battle we have faced for the past couple years is being won. We were in debt to the national fraternity, but due to the hard work of active brothers, we have lowered our debt tremendously just over the summer. IHQ is pleased with our work and is appreciative of all the efforts we have put forth this year!
From: Evan Prostovich [email@example.com]
Sent: Tuesday, April 26, 2011 4:06 PM
Subject: RE: the demise of the PSK property at Western Michigan U
In regard to your questions surrounding Droopy Corporation/ Chi Tetarton Housing Corporation I cannot speak for what was done prior to PSK Properties’ involvement or provide any specifics regarding how the loan funds were spent. In general, my understanding is that Chi Tetarton Housing Corporation became Droopy Corporation. I do not know why they needed to create a new corporation, but Droopy Corporation was the local chapter’s non-profit alumni housing corporation just like the old one. There were no beneficiaries or stockholders. It is my understanding that the funds from the loan were used for a new roof, new siding, new windows, new HVAC, and completely renovated 1st floor. I also think landscaping was done, parking lot paved, new fence put up, etc. Beyond that I do not have further details on prior operation of the property by the Chi Tetarton alumni. I would recommend that you contact your fellow alumni should you seek further information on the history of the property prior to PSKP’s involvement.
When we took over the property, we assumed control of Droopy Corporation and assumed payments on the mortgage, the balance of which was over $89,000. The capital that PSKP lost was from operation of the property over the course of the 3 years that we operated it and included debt service, renovations, repairs, local management, insurance, taxes, etc. PSKP did not charge any sort of fee whatsoever for our general oversight and operation of the property, the losses were all from outside expenses and money put into the facility. The rent and parlor fees collected did not cover our operating expenses and thus the losses were accrued. The additional funds came from our operations at other properties.
Sent: Thursday, March 03, 2011 7:40 PM
Subject: RE: 446 Stanwood, Kalamazoo
The property was sold and following the sale it was announced to Chi Tetarton Alumni President Mark Caldwell to be disseminated to the alumni. I’m sorry this information was not passed on.
The house was sold on September 15 [ed.: actually 16], 2010.
The sale price was $109,900.
The buyer was Main Street Properties[II,] LLC.
The remaining cash to seller [Ed.: Droopy] after mortgage, taxes, closing costs, etc., were paid off was $6,757.76.
During PSK Properties’ operation of the property, beginning in the fall of 2007 and running through up until the sale in September 2010, we took a net income loss of $15,172.93. So the final result after the proceeds of the sale was a total loss to my organization of $8,415.17.
A $90,000 mortgage was taken out by the local alumni association in November of 2005, two years before PSK Properties was in any way involved with the property. My understanding is that these funds were used to renovate the downstairs and installing a new roof, siding, windows and kitchen at the property. Again, we were in no way involved in obtaining this loan or making these renovations so I cannot provide the exact details, I’m simply going by what I was told and what I observed when visiting the property.
Main Street Properties II LLC records its warranty deed.