The minutes of a November 7, 1965 meeting of the Sigma House Corporation show that the board of directors were interested in expanding the chapter owned property. Two options were discussed. They considered building a new house on North Campus (which was being built up at that time) or buying the house at 1702 Hill (directly adjacent to the house at 1601 Washtenaw) and expanding the Chapter House. The minutes read “Due to the excellent location of our present property and the uncertainty of fraternity growth into the North Campus area, it was felt that the expansion of our present facility was the more desirable solution.”
George Spasyk, acting as a director of the House Corporation, was authorized to investigate purchasing this property.
The house at 1702 Hill Street was originally owned by Kappa Alpha Psi Fraternity. George Spasyk wrote to the Grand Board of Directors of Kappa Alpha Psi Fraternity in a letter dated January 7, 1966. In the letter, he confirmed a conversation he had with Earl A. Morris, Assistant Executive Secretary of Kappa Alpha Psi, about the possibility of the sale of the property.. He sighted four reasons to sell the property. They are:
(1) The age of the structure is such that it was not appear feasible to invest heavily in renovation or remodeling. During the period of 1946-1950, Lambda chi Alpha rented this house as an annex and even at that time the structure was not especially sound.
(2) The size of the house limits its use, both as a residence and as a place for social activity. I would doubt that it was accommodate more than 10-12 men comfortably and the social areas are small. In short, the house is not ideally suited for fraternity use.
(3) The property is too small on which to build a new house. Lot size is 91’ frontage and 104’ in depth. Present zoning ordinances require off-street parking area based on occupancy, and the property would not be able to accommodate a new house of adequate size for fraternity use.
(4) New property is available in Ann Arbor in the direction of the north campus at a fractional cost of property in the older developed areas. Two fraternities have already built new houses there and several others have purchased property in that area.
The letter also offered that the House Corporation would be willing to buy the House at 1702, then lease it back to Kappa Alpha Psi for five years in order to allow them to have their housing situation secure.
Mr. Morris referred George Spasyk to the Grand Keeper of Records of Kappa Alpha Psi Fraternity.
House Corporation President Claude J. Morehouse commissioned an Appraisal Report and Valuation Analysis of 1702 Hill by The Butts & Swisher Company, in Ann Arbor. The report was completed on September 9th, 1966. It reported that the house was valued at $28,000.
Acting on the appraisal, Claude Morehouse made an offer to the Grand Board of Directors of Kappa Alpha Psi Fraternity on October 17, 1966. His offer had four parts. They are:
(1) We would be willing to purchase your property at 1702 Hill Street for $30,000 cash. the sellor to furnish abstract or title insurance.
(2) We would agree to leas the house to the National Fraternity until April 30, 1969, at a monthly rate or $225 ($2,700 per year).
(3) We would agree to offer a one-one year lease renewal option (at your option). the rental to be negotiated. Subsequent renewals by mutual agreement and at negotiated rent.
(4) Under the above lease we will pay property taxes and carry fire and extended coverage insurance on the house. The leasee will pay all utilities, maintenance and repairs, etc.
A letter dated May 7, 1968 to Sigma House Corporation president William Schepers from Mr. Gerald Alcock states that the ‘Isacson Property’ (located on Oxford street to the rear of the Chapter House at 1601 Washtenaw) is for sale at a price of $68,000. Mr. Alcock was the vice president of the Ann Arbor Trust Company. It appears that the offer to purchase the Kappa Alpha Psi Fraternity house was declined by this date.
The minutes of the September 1, 1969 meeting of the Sigma house Corporation include a report from Bill Schepers regarding the recently complete addition to the chapter house. The report is included here:
Some of us have communicated frequently in the past few weeks in an effort to finally close arrangements for the new addition to the house. This activity all began with action initiated at our Founders Day House Corp. meeting last spring. Since that time, we have had our share of delays, difficulties, and worries. Serious timing and money problems were a last minute headache requiring modifications in our plan and changes in financing. It took a flock of long distance phone calls, letters, and "leg work" during the month of August. On Thursday, August 28, 19^9 I signed and mailed the acceptance of the latest proposal from Butcher & Willits, Inc. for our three story addition over the existing porch and for the major renovation required in the kitchen. Cost of this contract is $60,770.00 plus financing costs and architects fees.
I have attached some plans in details of financing and some .figures and comments to serve as a guide in budgeting for this school-year. Both the Active Chapter and the Foundation must maintain a relatively tight hold on the "purse strings". We are spending some $10,000 more on this program than we had originally planned as our maximum, and with only §7500.00 of additional borrowed funds over the amount originally planned.
Special thanks are very much in order at this point to some members of the Fraternity. "Doc" Greey (though "Doc" left Ann Arbor in the middle of last month to accept a new position at Arizona State) spent a number of days working with contractors and the architect ... a good deal of "leg work" for us in Ann Arbor. Jim Nette has done more than his share of coordinating. Jim has worked tirelessly with "Doc" and me and with the contractor and architects, in addition to involvements with arrangements for our 1st mortgage loan. Rick Moxley worked with outside engineers to play a key roll in getting the contract cost cut by a whopping 10% and thus enable us to go ahead with the program at all. Rick also chased over to Butcher and Willits in Ann Arbor on more than one occasion and personally expedited last minute closing of this contractor's latest proposal. He also spent time with the architects from initial planning down to last minute changes. George Spasyk was also of critical assistance in arranging financing. George helped to. arrange both our 1st mortgage and 2nd mortgage. George carried a request for on increase in our second mortgage amount and term to an approval by the Grand High Zeta just about 10-days ago. It is a Nat'1 Fraternity loan.
Incidentally, at this same Grand High Zeta meeting, George was officially named
Executive Director of the Fraternity ... succeeding "Duke" Flad who,
as you know, died suddenly last year.
Bill Hockenberger and Claude Morehouse have my thanks for assisting with financing
arrangements and with contractor contacts, and Gordon Merritt is surely to be
thanked for his firm's architectural service, which by the way he is giving
to us at his "cost".
Needless to say, we are not happy about getting this late start. Of course we had hoped to be well into construction by this date. Our timing troubles will now burden the active members somewhat during this school year. Still ... over the months ahead, we will enjoy watching this program unfold. It will be a most attractive addition to an already attractive house, and actives and alumni alike will be very pleased with what they see, I'm sure.
The addition was built after all the property purchasing possibilities were investigated. No new property was purchased.
Compiled by Ethan Rein from resources obatined from George Spasyk with assistance
from Chris VanDeusen.