Emails from 2005 about building our 2007 house:
April 25, 2005
From: John T. Murdock
To: Mark S. Boardman
Sent: Monday, April 25, 2005 11:11 AM
Subject: Beta Project
Mark,
I went to a conference this past weekend for volunteers of Pi Kappa Alpha Fraternity which is my fraternity. I followed a track for House Corporation officers. I believe that Pike has one of the best real estate departments in the fraternity world. There was some very interesting information that I think might be helpful for Beta as you prepare to move forward. I would be happy to share that information with you and/or your board. The most efficient way for us to do this would be through a teleconference and/or a face to face meeting with your board.
Since this is out of scope of our normal arrangement, there would have to be an additional fee charged. Please let me know if you are interested in getting together.
Thank you,
John
John T. Murdock, President Greek Resources, Inc.
From: Mark S. Boardman <msboardman@bcwhlaw.com>
To: Chris Sherer <CAS429ada@aol.com>; Bill Owen <wmowen@bellsouth.net>; Brant Sanders <brant.sanders@morganstanley.com>; Brantley Sanders III <brantleysanders@msn.com>; Butch Weed <emweed@BCWHlaw.com>; Clay R. Carr <crcarr@bcwhlaw.com>; Dan E. Copeland Jr. <cope4665@bellsouth.net>; Doug Jones <DJONES@whatleydrake.com>; Graffeo, Vincent J. <VJG@HSY.com>; Joe Daniel <jdaniel@bbsinfo.com>; Joe Everly <jmetide@hotmail.com>; John Gamble <JGAMBLE@usouthal.edu>; Ken Johnson <Kljohnson@labargepipe.com>; Ken Riley <kriley@frplegal.com>; Ollie Newton <onew77@hotmail.com>; Oscar J. McGriff Jr. <OJMCGRIF@southernco.com>; Ron Hughston <rhughston@mindspring.com>; Todd McCormick <todd.mccormick@ps.ge.com>; V.J. Graffeo <vgraffeo@bellsouth.net>; zBOII JOHN GAMBLE (JGAMBLE@usamail.usouthal.edu) <jgamble@usamail.usouthal.edu>
Sent: Mon, 25 Apr 2005 14:59:12 -0500
Subject: Fw: Beta Project
Brothers,
My thoughts on building a new house is that we will, on moving in to a new completely house, almost immediately have an asset above the construction price. The bigger the house, the more the University will like it, particularly given we will build it like a hotel with private baths in every room. Since Dr. Witt now avoids the requirement of personal guarantees by any of us, we have no personal risk. At most, we risk the actives moving to another location, something that, after 3 or 4 years, no student at UA will know about since the “collective memory” of the student body is flushed by graduation every 3 or 4 years.
So, since the University is taking the monetary risk, I believe we should build the new house on our present location. Those who really took the risk were those who built a new house within 7 years of Delta Theta’s founding, at a time when joining fraternities was not popular. We were risk takers then—- and it paid off handsomely.
My vote is to build the new house.
On the same issue, here’s a note from John Murdock. John’s a good CPA, i.e., very conservative. He would have recommended against taking the risk of building a house in the late 60’s and early 70’s. That’s what I want in my CPA—-but I don’t always take their advice. Anyway, he has suggested the following, which I am forwarding to you for comment. I’m not sure we need to go to this expense, but would like to hear from all of you. Please reply to everyone on the list, not just to me.
-Kai-
Mark
Mark S. Boardman
From: cas429ada@aol.com [mailto:cas429ada@aol.com]
Sent: Tuesday, April 26, 2005 8:37 AM
To: msboardman@bcwhlaw.com; wmowen@bellsouth.net; brant.sanders@morganstanley.com; brantleysanders@msn.com; emweed@BCWHlaw.com; crcarr@bcwhlaw.com; cope4665@bellsouth.net; DJONES@whatleydrake.com; Graffeo, Vincent J.; jdaniel@bbsinfo.com; jmetide@hotmail.com; JGAMBLE@usouthal.edu; Kljohnson@labargepipe.com; kriley@frplegal.com; onew77@hotmail.com; OJMCGRIF@southernco.com; rhughston@mindspring.com; todd.mccormick@ps.ge.com; vgraffeo@bellsouth.net; jgamble@usamail.usouthal.edu
Subject: Re: Beta Project
I agree. We have some liability problems with the present house (balcony, bridge) and have been extremely lucky that we have not had any problems in the past. I feels that if the numbers are there and we can do it we should go ahead. I don’t know if we would have a better opportunity with the SDT house situation if we wait. I don’t know what other options there would be for us to have a house while the new one is being built if we wait.
On another point I still hear rumors from the DKE’s that they are going to take our property and this will be a way to put that to rest for good.
I don’t know what the financial numbers for this project are but if we can do it at the present time I think we should go ahead.
Chris Sherer
429
—–Original Message—–
From: Graffeo, Vincent J. [mailto:VJG@hsy.com]
Sent: Tuesday, April 26, 2005 9:38 AM
To: cas429ada@aol.com; msboardman@bcwhlaw.com; wmowen@bellsouth.net; brant.sanders@morganstanley.com; brantleysanders@msn.com; emweed@bcwhlaw.com; crcarr@bcwhlaw.com; cope4665@bellsouth.net; DJONES@whatleydrake.com; jdaniel@bbsinfo.com; jmetide@hotmail.com; JGAMBLE@usouthal.edu; Kljohnson@labargepipe.com; kriley@frplegal.com; onew77@hotmail.com; OJMCGRIF@southernco.com; rhughston@mindspring.com; todd.mccormick@ps.ge.com; vgraffeo@bellsouth.net; jgamble@usamail.usouthal.edu
Subject: RE: Beta Project
I think we should build for all the reasons we already know and for those stated below. Opportunities such as this do not come around very often and we need to make the best of this one. My vote is to build.
As for Murdock’s offer, his message was rather vague and we would need more info. Nevertheless, it appears as though we are already on a good start.
V. J.
Vincent J. Graffeo
HASKELL SLAUGHTER YOUNG & REDIKER, LLC
—–Original Message—–
From: Ken Riley [mailto:kriley@frplegal.com]
Sent: Tuesday, April 26, 2005 9:20 AM
To: ‘Graffeo, Vincent J.’; cas429ada@aol.com; msboardman@bcwhlaw.com; wmowen@bellsouth.net; brant.sanders@morganstanley.com; brantleysanders@msn.com; emweed@bcwhlaw.com; crcarr@bcwhlaw.com; cope4665@bellsouth.net; DJONES@whatleydrake.com; jdaniel@bbsinfo.com; jmetide@hotmail.com; JGAMBLE@usouthal.edu; Kljohnson@labargepipe.com; onew77@hotmail.com; OJMCGRIF@southernco.com; rhughston@mindspring.com; todd.mccormick@ps.ge.com; vgraffeo@bellsouth.net; jgamble@usamail.usouthal.edu
Subject: RE: Beta Project
We will survive without a new house; we can thrive with a new house. We have not failed in the past, I don’t know why we would start now. Timing is everything – we have timing and the best piece of property on campus (in my opinion).
Murdock should have every reason to share his thoughts with us without a substantial charge – he thrives by our success. If he wants an hourly charge, then pay him for his time.
If we don’t act, we could hold out for a few more years, but eventually, the powers that be would put the property to its highest and best use.
I would not, however, recommend signing anything other than an agreement with the SDTs contingent upon the financing of our new house. Give them $5000 in earnest money and hope we are approved. I’ll bet that $40,000 is negotiable as I am not sure of how many established fraternities are looking to raze their houses in July.
Just my thoughts.
Ken Riley
From: Edward M. (Butch) Weed [mailto:emweed@bcwhlaw.com]
Sent: Tuesday, April 26, 2005 11:46 AM
To: Ken Riley; ‘Graffeo, Vincent J.’; cas429ada@aol.com; msboardman@bcwhlaw.com; wmowen@bellsouth.net; brant.sanders@morganstanley.com; brantleysanders@msn.com; crcarr@bcwhlaw.com; cope4665@bellsouth.net; DJONES@whatleydrake.com; jdaniel@bbsinfo.com; jmetide@hotmail.com; JGAMBLE@usouthal.edu; Kljohnson@labargepipe.com; onew77@hotmail.com; McGriff, Oscar J., Jr.; rhughston@mindspring.com; todd.mccormick@ps.ge.com; vgraffeo@bellsouth.net; jgamble@usamail.usouthal.edu
Subject: RE: Beta Project
I agree with the below, think it accurately describes the situation, and think we should get Murdock to show us (all) some projections or pro forma statements. All in all, though, do the due diligence, take the risk, build the house, assuming everything checks out, and apparently it has so far. The worst risk right now is probably the risk that we do nothing and fail to take advantage of what appears to be a good opportunity.
EMW (Butch Weed) #320
From: McGriff, Oscar J., Jr.
Sent: Tuesday, April 26, 2005 12:59 PM
To: ‘Edward M. (Butch) Weed’ <emweed@bcwhlaw.com>; Ken Riley <kriley@frplegal.com>; ‘Graffeo, Vincent J.’ <VJG@hsy.com>; cas429ada@aol.com; msboardman@bcwhlaw.com; wmowen@bellsouth.net; brant.sanders@morganstanley.com; brantleysanders@msn.com; crcarr@bcwhlaw.com; cope4665@bellsouth.net; DJONES@whatleydrake.com; jdaniel@bbsinfo.com; jmetide@hotmail.com; JGAMBLE@usouthal.edu; Kljohnson@labargepipe.com; onew77@hotmail.com; rhughston@mindspring.com; todd.mccormick@ps.ge.com; vgraffeo@bellsouth.net; jgamble@usamail.usouthal.edu
Cc: zBOII GREG COUISAMNO (greg@alabamatortlaw.com) <greg@alabamatortlaw.com>; jmurdock@greekresourceservices.com; wwc@tusc.net; onew77@hotmail.com
Subject: RE: Beta Project
The University has no financial risk… they will have a valuable asset if we cannot make our payments. The new house corporation has a fiduciary responsibility to every member that has paid a house bill over the years to pay for our house. This house has a value of $600 – 900 thousand. I question the viability of tearing down an asset of this value. The old ATO 1902 house was a shambles… actually we pulled out the post holding up the first floor and the house fell into the basement… so the story goes.
But I, like you, think that a new house is a nice thing to have for our fraternity and would make us more successful. I do not think it will make us a better brotherhood that has nothing to do with the house. This has been proven by our past history.
Now, how can we build and pay for our new house. By our gut feeling that we need a new house and somehow we will pay for it? Or, do we make sure we do due diligence and have a pro forma financial plan to show how we plan to pay for the house. I remember we signed pledges for this existing house. I wonder how many pledges were paid. This is a great opportunity, if it is financially viable. When I came on board after Joe McCrary’s death, Me, Ollie Newton, Chris Sherer, Dan Copeland and John Gamble were all that was involved in the house on a regular basis. The house corporation was a shadow organization. If we cannot pay for the new house, I wonder if we will leave the problem to a new set of house corporation officers, and the active Beta’s to solve. Point… we do have a personal responsibility to represent every Delta Theta Beta that has paid a house bill. It was the house bills that paid for this house mainly and not donations for young Beta’s that were struggling to make ends meet after graduation.
Another point, John Murdock has helped our chapter more than the other fraternities because I asked him too. He has met with the executive committee and me and made a financial budget for the house. He has explained all the financial matters to our officers. They know the full implications of the financial matters involving our house. This has been key to the way the house has been run over that past few years. I think John has gone beyond the call of duty… he could be charging by the hour for all consultation. I have spent hours on the phone with him discussing the financial viability of our house… no addition billing.
Let’s move forward… and as fast as prudence will allow us…
OJM#96
October 5, 2005
Sent: Wednesday, October 05, 2005 8:17 AM
Subject: Budget for the Fall semester of Delta Theta
Attached is the budget we worked up yesterday for the Fall semester of
2005. (David Bussman, Pres, Blake Perry, Treasury, John Murdock, consultant
and me)
Very important points:
1. It is imperative that we have moneys set side to maintain rush. We
have to have at least 30 men in the fall and 10 men in the spring to
maintain a 100 man Delta Theta chapter to make our plans for the house
to work.
2. As alumni we have to help the house maintain this number by being
very supportive and by being involved in guiding the house in the
right direction.
3. We must have strong leaders in the house for our plans to work,
this means that we have to support and train the leaders. This cannot be
left to chance.
4. Involvement means being in Tuscaloosa.
5. Meetings, like the dinner this last week end are critical to let
the Associate Members know we are a fraternity of alumni as well as undergraduate
Betas.
6. The tremendous work that has been done be the house corporation has
to be continued.
7. We have strong support from the University.
Thanks for what you are doing to make us the moving fraternity on
campus.
Yours in,
–kai—
OJM#96
From: “Joseph M. Troncale” <jmtronca@mindspring.com>
> Date: Wed, 5 Oct 2005 21:15:35 -0400
> To: “McGriff, Oscar J., Jr.”
Subject: Re: Budget for the Fall semester of Delta Theta
Jim:
Well said! Thanks to all for their hard work.
– Kai –
Joe Troncale
—–Original Message—–
From: Gregory Cusimano [mailto:greg@alabamatortlaw.com]
Sent: Wednesday, October 05, 2005 9:49 PM
To: Joseph M. Troncale; McGriff, Oscar J., Jr.;
Subject: Re: Budget for the Fall semester of Delta Theta
I’m concerned about the necessity of maintaining a 100 man house. What
is the average man house at U of A? Is it realistic to think we can
maintain a 100 man house? Have we ever had a 100 man house? I don’t remember ever having a house that large.
Assuming we could maintain a 100 man house, could we maintain quality?
Questions I hope have been answered.
-kai-
Greg #1
—–Original Message—–
From: Jim McGriff
Sent: Thursday, October 06, 2005 8:18 AM
To: Gregory Cusimano
Subject: RE: Budget for the fall semester of Delta Theta
The answer is, I do not think we have ever had a 100 man house. There
were several times we may have been close to 90 members. But, I firmly
believe a 100 man chapter is doable. Every Beta member involvement, and
chapter leadership is key to maintaining a premier fraternity. Auburn is
an example of what can happen when Beta’s unite.
It will take tremendous support from alumni, and consistent action from
the active chapter. There are maybe 5 houses on campus that have a 100
man house. I know we can do it. Consistency has to be maintained. We as
alumni must be very involved in grooming the leadership of our chapter.
We cannot afford to have weak leadership. I discussed this matter with
Ollie Newton and Ken Johnson yesterday. I will be talking to the
Associate Members on Tuesday next on personal leadership. We need to
have a leadership seminar with the house once or twice a year to focus
on this vital area. We cannot leave it to chance. I know we have great
leaders in our general fraternity alumni and chapter alumni who will
conduct seminars. Also, we have to have planning sessions with the
leadership in the spring for the new executive committee.
Organization of the house with each member involved on some committee
function is the way we must grow and maintain this size house. These
young Beta’s will need our help in this effort. I know it will work. We
have energetic young alumni that want this to succeed. We have the best
house we have had in years, the foundation is here to spring forward.
Greg, if we get involved with these young Beta’s it will happen. We are
building a premier house. We are building a premier chapter to go with
this house. The challenge is great. We can no longer be content to be
just another fraternity on campus, we have to be the best in every
activity on campus. We must continue the enthusiasm and focus we had
when you and the Delta Theta founders started our chapter.
Imagining the possible is not enough.
We must set your path to gain it. We must plan each step of the way. We
must execute the plan. To succeed we must plan to succeed.
I am committed.
Yours in,
–kai–
OJM#96
From: John T. Murdock
Sent: Thursday, October 06, 2005 10:09 AM
Subject: RE: Budget for the Fall semester of Delta Theta
Dear Beta Friends:
I don’t think I could improve on anything that Jim says and he is 100% correct. Anything is possible with hard work and determination. No, Beta has never had a 100 man house. And I don’t think you must maintain a 100 man chapter in order to make this work but it will surely make it easier. However, if you are building a house with 34 or so rooms, the rule of thumb is you need a 100 man house to maintain it – the rule being 1/3 residents to 2/3 non-residents.
There are several 100 man chapters on campus and growing. They include:
Sigma Chi
Pi Kappa Alpha
Theta Chi
Kappa Alpha
Sigma Alpha Epsilon
Delta Kappa Epsilon
There are also several chapters with over 90 members. The facts are the Greek system is growing under Dr. Witt’s leadership and it will continue to do so. How many freshmen must there be each year to have 28,000 enrollment as the good doctor wants? The answer is over 7,000 and we had over 3,750 this fall. Remember one half of those are male. So he wants to basically double the size of the freshman class in 10 years. About 20% of the male undergraduates are in a fraternity.
If you told me 3 years ago that Beta would have a 80 man house this year, I would have said you were nuts. What you have been able to accomplish is nothing short of a miracle. In fact, I had prepared your obituary when you had 35 members 3 years ago. You can obviously do anything you set your minds to do.
But this is the hard part and Mr. Bussman knows it. It is hard to maintain a quality program over the years. It will take input and leadership from the alumni to lead the 20 year olds to new places and keep them there. It will not happen if the alums build the house and go home. There is a natural let down after such a huge event like this one. You must be in this for the long haul. And as you guessed, the more people you have involved the less you have to do individually.
My hat is off to you guys. I can’t wait until October 31 for this process to get underway. See you on the lawn!
John
President Greek Resources Inc.
From: “Joseph M. Troncale” <jmtronca@mindspring.com>
Date: Thu, 6 Oct 2005 20:46:54 -0400
To:
Subject: Re: Budget for the Fall semester of Delta Theta
To all:
Per the General Fraternity and its history of chapter finances, a chapter operates most financially efficient when it has at minimum 80 dues paying members. As far as the number of residents in the house, that is the concern of the Housing Corporation. They are the “Landlords. It is their prerogative and purview to set capacities, rents, rules, standards, etc. For those of you who are not aware, the Housing Corporation is totally independent of the General Fraternity and sets its own rules and regulations.
I feel a 100 man membership is not out of the question and if new member selection is done properly and with care, there should be no loss of quality. What is required with large chapters is having more participation by all the members instead of leaving the work to a few. That’s when quality goes down because the few are overwhelmed and become discouraged.
I am very impressed with the recruiting job the chapter did this fall. They are definitely on the move and with continued strong alumni support the possibilities are endless.
– Kai –
Joe Troncale #14
From: Gregory Cusimano [mailto:greg@alabamatortlaw.com]
Sent: Friday, October 7, 2005 12:09 AM
O.K. Then, I’ve been convinced.
-Kai-
Greg #1