Lambda Chi Alpha members oppose possible sale of fraternity house
Wednesday night’s East Lansing Planning Commission meeting was full as the commission addressed the sale of the Lambda Chi Alpha fraternity house, 128 Collingwood Drive, and a site plan amendment to City Center II.
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Opposing the sale of the Lambda Chi Alpha fraternity house to a developer who would convert it into an apartment complex, members of the fraternity flooded the East Lansing Planning Commission meeting Wednesday in defiance.
With a majority of the fraternity in attendance at Courthouse No. 2 at 54-B District Court, 101 Linden St., the planning commission felt pressed to delay action on the site until its March 10 meeting after several fraternity members’ pleas to give them more time to find another buyer.
The planning commission has to approve whether the fraternity house’s potential buyer could turn the house into an apartment complex. If approved, the issue would be voted on by the East Lansing City Council.
Members of the fraternity’s executive board informed the commission that they have been in constructive negotiations with an alumnus who has tentatively agreed to purchase the property, but the national fraternity said it already had found a purchaser.
“It’s incredibly frustrating,” said Aaron Letzeiser, vice president of Lambda Chi Alpha. “Without a house, it’s very difficult to survive on a college campus. Especially a house that has had so much history in East Lansing. It’s been a property that’s been able to grow up with the university through Michigan Agricultural College and Michigan State College and Michigan State University. It’s really seen it all.”
Lambda Chi Alpha’s national fraternity owns the home — which is part of the Bailey Neighborhood Historic District — and is in the process of selling the property to Dale Inman, a developer based in Troy, who plans to change the 83-year-old fraternity house into high-end apartments. The site plan would add 1,980 square feet to the back of the 3,900-square-foot structure.
Michael Smith, chairman of the board for Lambda Chi Alpha’s national fraternity, said the national fraternity decided three years ago it was best to reduce its property ownership because of financial losses. Smith said it has been a national fraternity goal for the past three years to absolve itself of most of its properties because of the losses, and MSU’s chapter is just one of many affected.
Letzeiser said the fraternity was notified of the national fraternity’s policy and intentions in 2008.
Smith said the national fraternity will aid the local fraternity in finding a new home, but he is unsure of any progress on that front.
Lynsey Clayton, an East Lansing planning commission member, said she doesn’t know where the fraternity could relocate near campus.
“There’s not a lot of places for fraternities and sororities to go, so if they’re not there, where do they go?” she said. “We don’t have a lot of big houses, and not many near campus.”
Bill Readdy, a member of the fraternity, said the fraternity has contacted every realtor in the city about homes on a rent-to-purchase basis, but none exist for the size needed.
Although no agreement officially has been reached, both Smith and Inman said the deal virtually is complete. Tim Schmitt, East Lansing community development analyst, added that he has heard there is a contract with the signature of the national fraternity in place, which indicates the intent to sell.
Inman said although most development has ceased across the state, investing in MSU made sense.
“Primarily the location of that building and the fact it’s near Michigan State University — which is as solid and stable a university you could get — you put those two factors together that makes for a very successful development,” he said.
David Tyler, an MSU and Lambda Chi Alpha alumnus who resides in East Lansing, told the commission that although he will not stand in the way of a sale, he urged the commission to consider the displaced fraternity and its members.
“Sitting here tonight, listening to some of these statements made by the potential developer is, if I may, similar to listening to somebody come in and talk about your house and reconfiguring your house entirely,” he said. “It’s a place you call home.”
Inman said the home would be converted into 15 apartments with three or four bedrooms and between 1,000 and 1,400 square feet. The apartments will cost between $500 and $700 per month per resident.
The exterior to the structure will remain untouched, which was a significant reason why the city supported Inman’s involvement, Schmitt said.
“It’s one of the older buildings in the area and a great example of that architecture, it’s a stately old Tudor style building,” he said. “Preserving it was a priority for us.”
Commentary
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Bob The Builder
(02/25/10 3:48am)Report
Nice job ignoring the historical district code for money East Lansing.
“The site plan would add 1,980 square feet to the back of the 3,900-square-foot structure.”
I’m pretty sure that’s a change that’s visible from city streets. Yet we couldn’t even put new energy-efficient windows on our house because they didn’t use an outdated and inefficient method of construction, and would improve the look of the house in general. A house that doesn’t fit in with the historical district it’s in at all as it stands.
EL City Council is just showing that it cares more about empty promises and money from developers than an organization that has been in the city longer than the families of most, if not all, of the council members.
Besides, the last thing East Lansing needs is more “high end” housing that will go empty. It needs more affordable housing for students and to get buildings that have been abandoned for some vague fairytale dream of young urban professionals living downtown. Guess what, there’s no jobs for them! They’re not going to come here until the jobs do, and in the meantime there is a constant population of students who contribute massive sums of money to the city. If you won’t respect them, respect the fact that East Lansing and its economy wouldn’t exist without them.
spartan12
(02/25/10 6:45am)Report
High end apartments? Really?
i'm here
(02/25/10 8:20am)Report
i would like to see some nice places to live around east lansing. i love e.l., but hate student apartments. i’m sure i’m not the only one with money in this town. someone else at least has to have rich parents.
Anon
(02/25/10 9:08am)Report
They should do this with more frat houses. I like this idea.
“Besides, the last thing East Lansing needs is more “high end” housing that will go empty.”
Find me an empty place within 3 blocks of campus. Everything is leased well before November.
JohnD LAMBDA CHI ALUMNUS
(02/25/10 9:13am)Report
Not a MSU student or alum. Alum of Lambda Chi Alpha however from another campus. Shame on the Lambda Chi International headquarters for this…They took over several houses nationally as a policy decision and then failed in managing them and now they are dumping all of them….SHAME ON YOU!
Anonymous
(02/25/10 9:39am)Report
Not only is their national fraternity hanging these men out to dry, they are also selling the property to a convicted felon. Dale Inman’s partner, Michael Dowdle, is an ex-Kmart executive who plead guilty to defrauding the federal government in the Eastern District of Wisconsin. He was sentenced to twelve months in prison and ordered to pay $500,000 in restitution to Kmart, in addition to losing his license to practice law.
Both men are Michigan graduates. Not surprising, really.
I'm Here too
(02/25/10 9:47am)Report
Bro, does your Dad own a car dealership too??? I thought I was the only one.
Petie
(02/25/10 9:51am)Report
WTH is with all these “high end apartments” everywhere. No on can afford that crap, especially students. I just want some shitty apartment for 300 a month that works.
Lambda Alum
(02/25/10 9:58am)Report
Being a former Lambda Chi who graduated a few years ago, this breaks my heart. Lambda Chi Alpha Properties (LCAP) have done an awful job in terms of being responsible. Taking out a loan on the houses the way they did was just plain stupid. I hope we are able to get everything together and purchase the house back for ourselves. The house does have too much history to be converted into apartments.
And whoever had the comment about there being nice places to live in EL, there are plenty already – leave the Hut alone!
Quentin
(02/25/10 10:06am)Report
@Bob the Builder
The construction of the addition would be to the rear of the building and would not be visible from Collingwood Drive. As such, it falls in line with the Historical District code.
Neighbor
(02/25/10 10:20am)Report
Good riddance to bad rubbish
Emily
(02/25/10 10:38am)Report
Does MSU Lambda Chi not have a Facebook group? Certainly your alumni could help you raise the money to buy the house??
Lambda
(02/25/10 10:58am)Report
Yes, many of the alumni have donated and help to raise a significant amount of money to purchase the house. However, even though the property is appraised at a little under $400,000 , the asking price was close to 7. Currently, we have the money to buy the house for the asking price, but the property owner does little to help us and we now wait for a decision from the planning commission to see if the current plans are denied, which will then result in an opportunity to re-open talks with the property owner.
Lambda Mom
(02/25/10 11:17am)Report
Wake Up E.L.! A convicted felon and a Wolverine; how can you believe that these developers will do what they promise?
MSU Student
(02/25/10 11:20am)Report
Shame on the this national fraternity and the city of east lansing if they support this change. There is plenty of apartments vacant in the city and to change this historic facilty to make more is poor city business at best. Does east lansing want to be just another stip mall converted city or does it want to retain its historic homes for their intended purchase. maybe the city can help organize financing to keep these members in their home. Commerical loans in this economic climate is almost impossible let alone for a group like this… Will someone in banking or with resource help these guys out?
Linda
(02/25/10 11:37am)Report
Lambdas – FIGHT THIS ONE on behalf of all students at MSU! If us non-frats think this won’t happen to other houses, think again. EL and Inman/developers don’t care about MSU or students. Having them convert the house into high end rentals will only set a precedence for all properties around campus. Good luck, Lambdas – we’re on your side!
New Yorks Times info
(02/25/10 12:10pm)Report
http://www.nytimes.com/1996/01/19/business/ex-kmart-official-indicted-in-bribery.html?pagewanted=1
Is this who we want in EL displacing students and student groups? I hope the city council reads this
Anon
(02/25/10 12:26pm)Report
That house is a dump. It’s about time somebody turned it into usable space for normal students. That is PRIME location on campus being wasted by a frat. I would be happy to pay $700 for a brand-new, up to date apartment that close to campus. when can i sign a lease for 2011?
jo
(02/25/10 12:32pm)Report
that house is across the street from taco bell. 4th meal every night.
Mark
(02/25/10 12:35pm)Report
Anon – Its 2800 a month for 4 people or $700 ea. If you would pay $700 to share with that many is like living in a co-ed or frat for 2-3 times the cost.
Anon
(02/25/10 12:53pm)Report
A majority of students (including those in the greek system) are choosing to not live in frat houses anymore. It only makes sense to convert this prime real estate into a more usable application, as long as the exterior retains its historical look.
There are plenty of students (myself included) who would be willing to pay top dollar for the location and a nicer than average apartment. Anyone who doesn’t want to pay more,doesn’t have to live there – but it would a great place for those of us who would.
jason
(02/25/10 12:56pm)Report
I feel bad for the new members who are going to lose their house – they join a frat and then lose their place to live. That sucks, but it’s the national chapter that is selling it.
“Michael Smith, chairman of the board for Lambda Chi Alpha’s national fraternity, said the national fraternity decided three years ago it was best to reduce its property ownership because of financial losses.”
So the national fraternity is losing money and they’ve known about it for years. The chapter is finally deciding to fight for their house when the house is already under a purchase agreement (I assume) and in the planning stages for being re-developed. Wow, guys. You sure know when to pick your battles.
And yes, it is across from Taco Bell – RUN FOR THE BORDER!
student
(02/25/10 1:29pm)Report
I watched this meeting on TV last night and it is completely irrelevant to the city of EL. This is an issue that involves the national headquarters and the local chapter. The fact that the local chapter has done so much for the University and the community is irrelevant since the developer has the right to buy the property.
I support this fraternity because I think is better to have a student organization there than support a guy trying to make money from us.
Still, by what I learned last night, I believe this will go through even when the fraternity has an alumnus that is willing to buy the property. It is possible that the developers and the national fraternity made arrangements to bid over what the alumnus is willing to pay.
Special K
(02/25/10 1:34pm)Report
For those people looking for an apartment, there are already apartments directly across the street from the fraternity house. You have Haslett Arms, the ones above jimmy johns and blockbuster, and the brand new apartments above taco bell.
Rob
(02/25/10 1:41pm)Report
Shame on the national organization of Lamba Chi. They are hangin their members out to dry selling the house to a developer that will ultimately turn it into apartments. Maybe the local chapter should have started fighting sooner but I am amazed that the National organization is not more willing to help its members.
I dont really think EL needs apartments that will cost 500-700 per tennant per month. Yes there may be some students that will pay that, or maybe students parents. However, there is no way they will be able to fill the place and it soon will go vacant.
I hope that EL stands up for these students and denies the developing plan!