PKP Housing Chronology

1999.

Chapter asked Alumni for help as membership had dropped to 60. 5 Alumni started meeting to focus on improving rush execution.

2003.

Membership had improved to 140. Aging house as configured could not support chapter and faced several problems:
1.House was slowly slipping downhill toward Longview.
2.Too few rooms to provide core in house group a fraternity needs to thrive.
3.House in poor repair due to lack of proper maintenance.
$. Asbestos issues and aging infrastructure.

Architectural Committee formed to study feasibility of moving, upgrading or building 2401 Longview.
Five firms asked to present Qualifications to committee and ideas. All architects felt new house was only answer to multiple issues. The committee selected Jackson Ryan Architectural firm and Brooks Howell a PKP Alumnus. Howell soon formed Howell- Mims Architect firm.

• Conceptual plans developed for new 60 man fraternity house to fit chapter size needs.
• Pricewaterhous engaged to study feasibility, including area room and board costs, risk of keeping membership at 120 men or more, university room and board costs and value of property at 2401 Longview.
• Construction committee formed. Vaughn Construction of Houston selected as General Contractor with architect input. Vaughn estimated cost of building design at $3.9M plus $300,000 in soft costs or total cost $4.2 M.

Contacted multiple Lending Sources including 30 banks. All showed no interest or required personal loan guarantees for total loan amount even though our lot was appraised for $3.7M.

Arranged $ 4.0M construction loan with help of a Dallas Brother through his contacts at First National Bank of Brownwood TX. This Brother put up $1.0M to help obtain loan. This money was contingent upon the Endowment Fund obtaining matching funds from other brothers during construction. TAEF was successful in raising less than ½ that amount.

• Construction was scheduled to start in April. City of Austin delayed building permit try ing to force us to pay for the total cost of utility upgrades that we would get only partial benefit from.

• In June 05 we signed a three year lease on the Sigma Chi house to house the chapter during the new house construction.

• Obtained building permit in November. Vaughn got bids from contractors that came in at $7.2M. We had signed loan documents for a $4.0M loan. However, the cost increase was too much and we were un able to bridge the financing gap. Hurricanes Katrina and Rita significantly increased all Gulf coast construction costs, contractor workload, and materials. In addition, International demand by China and India for steel and concrete increased raw material prices dramatically during this period.

Even with the help of an outside outside fund raiser paid for by an alumnus, we were unable to complete our match of brother Noble’s $1.0M contingent gift. We did raise the funds to continue our scholarship program that provided from $30,000 to $ 50,000 each year to deserving undergraduate brothers.

• After repeated notices from the City of Austin to continue to re-board the house at 2401 due to vagrants entering through the board barriers and lighting fires, striping copper tub ing and wiring, gang graffiti etc. We elected to demolish the house because it could not be maintained in a safe condition. Brother Noble provided the funds for demolition. New house construction set for Fall 2006.

In February Brother Noble attempted to purchase the SDT house as an investment. Due to unknown renovation cost risk the deal was not completed.

•Pricewaterhouse reappraised the 2401 Longview lot at $4.74M

•We attempted to start construction of a new house on the basis of a single Brothers com mitment to put $2.0M cash in the project. Brothers Noble TX’80 and Nelson UCLA ‘48 generously agreed to personally guarantee the loan. A construction loan agreement was ap proved with the First State Bank of Central Texas but the bank required personal guarantee tees on the total project cost of $8.2M.

•Even with a lot value of near $5.0M, the bank required $2.0M advance in cash and a $6.7M lien advance.

To address the immediate needs of chapter housing, Brother Gibbons has successfully negotiated a long term lease with option to purchase the SDT house at 2411 Longview from Butrose Properties by The Texas Alpha House Board, Inc. at 8% return to landlord and $200,000 renovation allowance put up by TAHB.

The two properties at 2401 and 2411 are adjacent and together worth more than either individual tracts of land.

A loan by TAHB from the First State Bank of Central Texas for $500,000, secured by the lot at 2401 Longview was arranged . This funded the lease and renovation allowance. Closing on the loan was completed in November and occupancy will begin in June 2008.

Through this chronology, it should be clear to all Texas Alphans that despite natural disasters, increased regulation, market conditions -Texas Alpha has emerged tested but determined. Brothers have sacrificed time, energy, resources and their personal finances to secure a permanent home for Texas Alpha. Currently, less that 5% of alumni brothers have contributed to this effort and it is incumbent upon all of us to come to the aid of their chapter in the time of its greatest need.