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.
Seeing that the number of our alumni with facebook accounts is increasing, I’ve decided to create a group to help communicate alumni events and the happenings of the chapter.
Just so you all know the PSK Properties board has been forced into selling the Chi Tet House on 446 Stanwood. If PSK has a good address for you then you should receive a letter going into more details about the decision. Essentially they active chapter was not paying rent on time, the amount of rent necessary is more that the chapter wants to pay, and they want to move down to Fraternity Village. At this time the Property Board is looking to find other renters (non Phi Sig) for next year or they will entertain offers to sell the house out right. Sorry for the bad news, but knowing the efforts that Evan and the Properties board put into the house and chapter it is the right business decision.
March 29, 2010 at 8:45pm
Matt Parowski – I was initially upset after hearing this, as some of you may be as well; however, after speaking to the chapter I have a better understanding of the situation and how this move will strengthen the chapter.
It was not that the chapter did not want to pay the rent, they could not afford to pay the rent because the parlor fees were raised from $250 a month to $750 a month. The costs associated with keeping that house became out of range of the chapters annual budget. They have raised dues and held multiple fundraisers but that was not enough to offset the ever increasing costs.
Our chapter is the only fraternity on campus that does not have a central location in Fraternity Village. This has made it very difficult to recruit new members as well as stay involved with the rest of the greek community. Moving down to the village should put them back in touch with the community and help them to grow exponentially. We’ve always had a strong presence in the greek community and this move will only help to strengthen our position.
There are a lot of great memories for everyone in the Stanwood house, but as the times change, we need to be receptive to change as well or our fraternity will die. I would like to ask that everyone continue to support the chapter as much as they can and not take any offense to what is happening. Although the Stanwood house may be gone, the memories we had in it will never go away. Where ever the chapter may be physically, we still need to make an effort to reunite for Alumni Association events to share those memories and show our support for the undergrads.
I would also like to thank Mark Caldwell and all of the other alumni for their support of the chapter over the years. It has not gone un-noticed.
There are talks of a golf outing this summer and a last hurrah at the Stanwood house before they guys move out. Keep your eyes out for further details.
March 30, 2010 at 7:25am · Like