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Virginia Tech Announces Phase IV Greek Village
NEW UPDATE: MARCH 12, 2010
An email message from Dr. Ed Spencer . . . .
Following our information session on February 27th about the Phase IV Fraternity and Sorority Housing Project, we have had a chance to review the alternative proposal presented by Mr. Don McNamara during the session. (you can temporarily view the video of the session at: http://vbs.virginiatech.na4.acrobat.com/p52711711). The feedback we have received, particularly from those groups which have already applied for the Phase IV project, has been very much in favor of the alternative proposal.
I am pleased to tell you that the University has developed a funding plan that can successfully support the first phase (five houses) of the Phase IV project by using the alternative proposal. The key elements of this project will be as follows:
1. The Greek chapter/house corporation must make tax deductible contributions to the Virginia Tech Foundation of approximately 35.6% of the total project costs which will result in the Greek chapter supporting 1/3 of the total project cost for the house it wishes to have built, up to a maximum total cost of $4 million. The gifts will include the normal seven percent administration fee; thus, a $1 million amount for a $3 million house would need a total gift of $1,070,000 to cover all costs. Through debt financing, the University will provide the other 2/3 of the cost of each house as well as the infrastructure/site development costs.
2. Each chapter will plan and design its own house, in partnership with the University, with a capacity of 32-44 beds which will be built to commercial and Commonwealth of Virginia construction standards with a likely range of $2 million to $4 million in total project costs.
3. Each house will be owned by the University and will become part of the housing system in the same way that current Oak Lane houses are. However, the debt financing would not require residents to purchase dining plans. Chapters may elect to have their own in-house board plans or students may elect to purchase a dining plan.
4. Residents will be charged individual room fees by the University which will be comparable to the room fees charged for our newer University facilities such as New Hall West. The actual rate will depend on the total facility cost and final bed count. Once the initial rate is established, room rates for Phase IV houses would increase in a manner consistent with any system-wide increase. It is estimated, but not guaranteed, that by the time these houses open, these academic year rates for a double room will be in the range of $5,200-$5,800, assuming the chapter/house corporation begins planning and construction in the timeframe required by the lease. As is the case with the current Oak Lane houses, the chapter would be responsible for covering the costs of any vacancies in its house.
5. The lease term will be 50 years (renewable once) and will require payments similar to current Oak Lane houses with the University covering all operating expenses, including the costs for live-in staff.
6. Should a chapter lose its University recognition and have to vacate the house, the University would either lease the house to another organization or use it for other housing needs. However, the original chapter that donated towards the construction of the house would have the right to lease the house again once University recognition is restored and the chapter is capable of resuming the lease.
7. Assuming the Board of Visitors approves the overall capital project at its meeting on March 22, planning work will begin. No physical site development work will begin on the first five sites unless and until there are at least three chapters committed to this alternative approach. No physical work on an individual chapter house will begin until the chapter/house corporation has a balance sufficient in its Virginia Tech Foundation account to support 1/3 of the project cost of the planned house. The building of the successive parts of this Phase IV project (lots 6-12) would need to occur gradually, as additional "critical masses" of groups (probably 3-5 at a time) are prepared to proceed.
Obviously the University will need to re-work the originally proposed lease and the policies and procedures involved. We will do so in the weeks ahead, but we did want to get this preliminary information out to everyone before the Board of Visitors acts on the proposal at its March 22 meeting. We are excited to offer this unique partnering opportunity in an effort to expand and strengthen our fraternity and sorority housing program.
Edward F. D. Spencer, Ph.D.
Vice President for Student Affairs
Virginia Tech
112 Burruss Hall (0250)
Blacksburg, VA 24061
Phone: 540 231-6272
FAX: 540 231-3189
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February 27 Informational Meeting
Thank you to all of our Eta Lambda alumni who came to the meeting on February 27th to learn more about the Phase IV Project. The university recorded the meeting and it is available at the following link:
http://vbs.virginiatech.na4.acrobat.com/p52711711
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Phase IV Greek Village Background
During the past year, Virginia Tech’s Board of Visitors has reviewed the viability of leasing university land to the house corporations of Greek letter organizations for those organizations to construct their own homes. The university announced on February 5th that a meeting on Saturday, February 27 will be held on campus to review the requirements for organizations to participate in this new housing initiative. The email announcement provides an in depth overview of the status of the project. Please take a moment and read the entire email: Meeting information -from Ed Spencer
Two presentations have been made to the Board of Visitors about the potential new Greek village:
Virginia Tech appears to be following the recent successful project at the University of South Carolina. We encourage you to review their information at:
http://www.sa.sc.edu/greeklife/housing.htm
There are several great documents on this website, including their design standards and lease. Also, the Greek Village at North Carolina State University has some interesting information.
http://www.ncsu.edu/greeklife/village/
The following is a draft of the ground lease:
Greek Ground Lease Draft
Virginia Tech Proposal
The February 5th announcement of the upcoming presentation by university officials also including several preliminary documents for house corporation and Greek alumn to review.The university has provided the Oak Lane Development Participation Summary and the Oak Lane Development Participation ChecklistTo move forward the University must receive three letters of commitment [Oak Lane Letter of Commitment], with $11,000 deposits before June 30. The university will start accepting commitments on March 1.The house must be built following the Greek Residences Design Standards
Next Steps
Our Eta Lambda House Corporation has been monitoring developments on this proposal. On Sunday February 14th at 2:00 p.m., we will host a conference call to review the project. The call is open to all alumni. If you are interested in participating, please contact our Chapter Advisor, Jeff Mitchell, at jeffery.mitchell@leclairryan.com or one of the members of the Chapter's House Corporation:
Brown Pearson, President cbpearson3@erg-homes.com
Adi Gelem, Treasurer agelem@yahoo.com
John Hays mingohays@aol.com
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