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.”