Theta-Theta House Corporation Update

"Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning." Churchill and the world were facing a far graver situation in 1942 than we find ourselves in. But the belief that brotherhood, honor and determination shall allow just causes to succeed is abundant in both cases.

The new school year has begun and Ann Arbor is bustling like we all remember it. The Sigma Chi house is also full and active with our new tenants. The House looks great after a summer of front porch repair, lawn maintenance, minor landscaping, and cleanup. We signed a four year lease with the Sigma Phi Epsilon fraternity this past summer and they have 31 undergraduates living in. They are excited about the house and the location. They reported a successful fall rush with 18 pledges on board. I would not normally expect any Sigma Chi alumni to be excited about the state of affairs of the Sig Eps but, after the events of last fall, having a full, rent paying, undergraduate chapter is a significant step towards the rebuilding of the Theta-Theta chapter.

The House Corporation remains focused and engaged and is meeting monthly in Ann Arbor. Below are a few of the things we accomplished since the loss of the undergraduate chapter last October:

• Secured property and liability insurance after Risk Management terminated coverage.
• Maintained the property with the assistance of our property manager, Fraternity Rho, Inc.
• Passed our city and insurance inspections.
• Attracted and signed Sigma Phi Epsilon fraternity to a four (4) year lease (8/04 - 8/08).
• Secured a $100,000 equity line to provide cash flow until our tenants moved in this fall.
• Completed our pre-move in up-grades (painting, landscaping, porch repair, etc.).
• Converted our insurance from unoccupied to occupied coverage.
• Secured new Directors and Officers coverage.
• Collection and storage of charter, regalia and chapter artifacts.

These tasks are representative of the two most important objectives of your House Corporation board: 1) stewardship and preservation of the chapter house at 548 South State and 2) the re-colonization of the Theta-Theta chapter in four years. All of our focus and activities shall be towards these aims. The return of Theta-Theta to the University of Michigan is a noble cause and a half-hearted attempt would be an affront to the more than one thousand Theta-Theta alumni who gave luster to the Badge of Sigma Chi.

Our financial status is stable and sustainable, but the debt load is significant. The loss of rent for six of the eight months last year put a strain on our finances. As of October, the House Corporation had $22,000 cash, $62,000 equity line debt, and a $712,000 mortgage. The centerpiece of our new four-year financial plan we devised is our tenant lease that includes yearly rent increases. We shall utilize our equity line to meet our obligations for the next 18 months and then we will pay off the equity line and pay down debt with the positive cash flow for the remainder of the lease term.

The blueprint we envision for the future involves participation and sacrifice from alumni in concert with the House Corporation Board. The Theta-Theta re-colonization is an opportunity to forge the undergraduate chapter with the values that we know create leaders of men and brothers for life. Many chapters, including recently Northwestern, have successfully emerged from loss of charter. We will be reaching out to the alumni, alumni chapters, and National, for their assistance and participation. We shall be using the Wolverine Sig and our website (www.thetatheta.com) to formally communicate with our alumni base. Links to House Corp are at the website and your comments and questions are welcome.

I would like to ask each one of you to send a donation to the Chapter after you read this edition. The $1,700,000.00 raised for the house restoration was well spent and allowed us to attract a long-term tenant. The generosity of most of our alumni was spectacular. For those who did not contribute, now is the time. For those that did, I must risk your consternation by asking for more. This request is not made lightly: reducing our long-term debt is an important requirement for the financial stability of our chapter. Thank you for your cooperation and patience.

In Hoc Signo Vinces,

'83
President