Delta Tau Delta - Indiana University

Spring 2017 Newsletter

Beta Alpha Chapter of Delta Tau Delta at Indiana University

Issue link:

Contents of this Issue


Page 0 of 3

DTD e Shield Delta Tau Delta • Beta Alpha Chapter Alumni Newsletter • Spr ing 2017 BETA ALPHA MAINTAINS POSITIVE OUTLOOK AMIDST CHARTER SUSPENSION Alumni Communication and Support Critical Now More Than Ever T he primary purpose and responsibility of the Beta Alpha House Corporation is to maintain the physical assets, property, and financial sustainability of the chapter. While there is never a "good" time for a charter to be suspended, the news in early January felt like an extra punch to the gut, given our role. Coming off the heels of Beta Alpha's largest-ever capital campaign and construction project, we have many sub-contractors owed and new loans to address. With construction costs topping $3 million and roughly a quarter of the costs pledged to be covered by alumni donations, we were in a very strong financial position, with cash flow, recruitment, and balance sheets all looking very positive as of the fall semester. However, the charter suspension resulted in an immediate loss of $300,000 that was due for spring rent, and many of the financial commitments have gone unrealized. With immediate expenses to be paid and little cash on hand to do so, we had to take immediate and urgent steps to keep our beloved chapter solvent. While efforts were immediately undertaken by the group, led by Brother Kenneth Glass '76 and countless others, in pursuit of a strategy to recolonize as soon as possible, our fiduciary responsibilities required us to focus on the short- and long-term finances of the Shelter. It was made clear to us that any appeal of this decision would not take place until late June of 2017. However, with a vacant Shelter and most IU students signing leases for the fall semester by February, we literally could not afford to wait until June to find out if 1431 N. Jordan would have any occupants this fall. If we would have waited to secure other tenants until this summer, we would have certainly run a high risk of defaulting on our loans and the property. As we set out to begin pursuing new tenants, we felt the best possible outcome would be to negotiate a one-year lease. This would have provided us the opportunity to reoccupy the Shelter in fall of 2018, given the appeals process this summer would have been successful. It was also our goal to come to terms with a chapter that would be respectful of the Shelter, allow us to pay our bills until recolonization, and be a good partner as it relates to house operations and financial responsibilities. We received several inquiries from interested chapters immediately. In all, we had roughly 10 initial conversations. As we arrived at financial minimums we would be asking for, a few had to drop out of the search process. We ended up hosting six IU chapters (all unhoused) for in-person tours, interviews, and other communications. Throughout this two-week process in February, it became apparent that a sorority, Theta Phi Alpha, would be the best tenants for the Shelter. The sorority has only been at IU since 2012, but their numbers are extremely strong, they came highly recommended by IU Student Life, Delta Tau Delta National Fraternity had only positive things to say about their leadership and infrastructure, and we felt they would treat the Shelter with respect and acknowledgement of our desire to return in the near future. Roughly 85 women will occupy the house this fall. The financial terms should allow us to catch up on our debts and sustain a strong financial foundation for when Beta Alpha returns. We were also able to negotiate a clause that would allow us to reoccupy the Shelter with 180 days' notice. This gives us the highly preferred flexibility to come back at our discretion, rather than having to agree to a rigid set number of years. As Brother Glass mentions in his article on pages 2-3, these terms were much better than we could have ever anticipated. The temporary loss of the charter is devastating to most of us, but we feel relief that the parallel process of maintaining the house and finances is on good footing. Staying connected during this time as alumni will be more important than ever. Therefore, we intend to continue with biannual newsletters, occasional mass e-mails, and coordinating any number of social events or meetings. I want to give a special thanks to our board members for their efforts over these last few months: Patrick Kennedy '95, who spearheaded the new tenant communication and tours; Treasurer Andy Parrish '98, who has facilitated the complex web of payments to sub-contractors, communicated with parents, and kept the ship afloat; Justin Rand '97 and Bryan Stoffel '09 for their legal expertise throughout the process, and their efforts to put together agreements and provisions with any number of constituents; and property manager Chad Casey '09, who has been our boots on the ground, communicating with parents and brothers, keeping the Shelter secured and in running order, and coordinating a whole host of behind-the-scenes, operational items that would have been very difficult for the board to see through. If you have any suggestions, comments, or concerns, please let me know. Fraternally, Scott Peden '98 Beta Alpha House Corporation President (317) 513-6505

Articles in this issue

Links on this page

Archives of this issue

view archives of Delta Tau Delta - Indiana University - Spring 2017 Newsletter