Renovation and Capital Campaign
Status Update, September 2018 … Not Done Yet
It’s been a while since I provided an update on the Capital Campaign, primarily due to sloth and procrastination, but let me begin with well-deserved congratulations to all of the Brothers of Sigma Tau for getting the project proposed, designed, redesigned, financed, and constructed. So, pat yourself on the back, pop open a cold one, and drink a toast to the Dekehouse.
Thanks to all the generous contributions from you and your Brothers, we were able to cover enough of the cash flow requirements to get us through construction. Good, but not enough. We have two 3% fixed-rate mortgages on the house that total $2.5 million, specifically a $2 million, 30-year loan and a $500,000, 5-year construction loan.
Pledges to the Capital Campaign total $1,278,406, with $686,297 pledged directly to ASTADKE, $541,918 pledged to MIT’s IRDF fund, plus a few undesignated pledges. $865,576 has been received to date, leaving a balance of $412,830. Conveniently, the outstanding pledges will just about cover the outstanding balance ($442,687) on the construction loan. The payments on the 30-year loan would be made primarily from the active’s rent plus any future alumni contributions.
That all sounds great…Construction is done, the house is occupied, and the financing looks OK.
The financing does look OK, but we are walking a fine line. Many of the pledges are spread over as many as five years. Pledges are not cash and can’t be used to make the loan payments. Plus, due to the terms of the IRDF grant, there is about a two-year delay between when donations are made to the IRDF and when ASTADKE can access the funds.
What Can You Do to Help? (As always, send money.)
If you have already made and fulfilled your pledge, thank you very much. You’ve stepped up and I am not going to ask you for any more money. Of course, I’m not going to turn any down, either.
If you have made a pledge, thank you for your support. Please make your donations in a timely fashion in accordance with your pledge commitment. If you can accelerate your donations, which would improve our cash flow and help ASTADKE maintain sufficient reserves.
If you have not yet made a pledge, please consider doing so now. Your circumstances may have changed for the better since the initial campaign solicitation and it’s never too late to join your Brothers in contributing to Sigma Tau’s future. If you have any questions about ways to give, mail contributions or pledge forms to the address below, email email@example.com, or go to the campaign webpage at www.astadke.org.
Together, we made the renovation a reality. Please make an extra effort—today—in whatever way you can. Then, please reach out to other brothers and encourage their support as well.
In the bonds,
Sandy Warrick ’72 and Ralph Grismala ’77
Capital Campaign Co-Chairs