The year 2006 was a year of major transition for the Chapter.
The ATO relationship with the College undertook a historic
change as a result of a process of negotiations between the
alumni corporation and the College over fourteen months.
Due to this course of events, which is described below, the
ATO alumni Board of Directors was faced with the challenge
of redefining its role with respect to the active Chapter.
In the summer of 2006, our Chapter House was completely
renovated to comply with the College’s ambitious Life
Safety Program, which was announced by the College Board
of Trustees in 2004. This Life Safety Program required all
College housing, including fraternity houses, to have new
fire safety equipment, including sprinklers and state-of-the-art
fire alarm systems, installed by 2010. Additional housing
upgrades were also required by the College as part of this
program. Fraternities were given the choice of paying for
these improvements on their own or having the College pay
for the improvements after selling their fraternity houses
to the College at prices that would be offset by any assumed
debt and the cost of the required improvements. The College
would then become the landlord for the members living in
those fraternity houses that the College acquired.
At ATO, we were not given a choice. Since our Chapter House
is one of three fraternity houses already located on College
owned land, the College took the position that it already
held title to our Chapter House. When our current Chapter
House was built in 1955, ATO alumni entered into a licensing
agreement with the College that gave ATO the right to build
a Chapter House on campus and to occupy and use the house
as a fraternity house for an unlimited time. If ATO ever
stopped using the house, the agreement provided that the
house would become a College building to be used as the College
deemed appropriate. This 1955 agreement was the basis for
our successful challenge (started in 2001) against the Borough
of Gettysburg’s attempt to impose real estate taxes
on our house for the first time. The agreement established
that ATO did not have marketable title to the real estate
because we were using the house under the terms of a license
to use the building that was granted by the landowner, which
is a tax-exempt educational institution.
Since the College administration had told us that they believed
our facility was among the best maintained fraternity houses
on campus, we took that view into account when negotiating
with the College on the terms that would apply to their take
over of the responsibility to renovate the house to comply
with the Life Safety Program, as well as to take over future
control of the house. Because our Chapter and alumni corporation
were debt-free and the house was in such good condition that
renovation of the house would be less costly than it will
be for other fraternity houses, the College agreed to pay
our alumni corporation a substantial six figure sum for the
equity that we had built into the house over fifty years
and for our agreement to grant the College control over future
management of the house.
The new agreement with the College requires ATO to maintain
80% occupancy of the Chapter house or risk losing the right
to use and occupy the house. Rental payments will now go
to the College, instead of to the alumni corporation, with
one exception: if the house is 100% occupied in any semester,
the alumni corporation will receive rental income for one
room. In exchange for the rental income, the College will
now assume, at its expense, future responsibility for the
maintenance, operation and financial management of the Chapter
House, including responsibility for any necessary future
capital improvements to the house.
If the alumni corporation wants to make any changes or improvements
to the house, we can still do so at our own expense, if approved
by the College. The roof that we added to the front porch
in 2004 (before this change in control took
place) is an example of the type of improvement that may
not be “necessary” under the terms of the new
agreement, but that we can still do at our own expense, if
we get College approval.
The alumni Board carefully considered how to use the equity
payment we received from the College in the best long-term
interests of the Chapter. We reviewed options for endowing
scholarships for active Chapter members through the College
and/or the ATO Foundation with part of the funds received
from the College, and we determined what our long-term investment
strategy should be for the funds remaining after endowing
scholarships. Information about scholarships that we established
with some of these funds in 2007 is available on this website
at atogettysburg.com/awards.htm.
We encourage all ATO alumni to come visit the renovated Chapter
House whenever you visit the College. Even though sprinklers
and other life safety features have been added, the original
look and character of the house have been maintained. In addition,
the plumbing and electrical wiring have been upgraded to current
standards; the bathrooms were all totally renovated and the
College equipped all the bedrooms with new furniture, including
microwave-fridges. Photos of the 2006 renovation can be found
at
atogettysburg.com/totalren_2006.htm.