“The Threshold Project”

Proposal to Redevelop Alpha Drive at Arizona State University

Update

February 1, 2008

Ladies & Gentlemen:

There has been significant movement on the Threshold Project since the last update dated October 1, 2007. Some of the news is good and some of it is not so good.

Let's start with the good news. Seven of the eight Alpha Drive property owners have now signed all of the necessary documents to form the Threshold Project LLC. The formation of this new entity was a request of President Crow and a crucial step in moving our efforts forward. From now on those seven property owners will act as one.

Unfortunately, the men of Sigma Nu Fraternity have elected not to become members of the Threshold Project LLC at this time. Though the other seven members of the LLC would have preferred to have them as a partner in our efforts moving forward, we have decided to proceed without Sigma Nu's involvement.

The Threshold Project LLC has also elected a management committee to make decisions on behalf of the LLC as well as a manager to execute those decisions. The management committee has already begun to work with Pierce Education Properties (our chosen developer) to make the Threshold Project a reality.

Now for the not so good news. The University committee with which we have been working for the last couple of years has undergone a change in leadership. With that change came an apparent change in the University's position on the Threshold Project.

That leadership has now proposed a new approach to development of the Alpha Drive site, one that relegates all fraternity and sorority housing to University-controlled facilities. Additionally, the University has proposed a dramatically different and scaled-down development of the site from that which we originally proposed and that enthusiastically received by President Crow.

Lastly, the University has engaged legal and real estate professionals for the purpose of taking the Alpha Drive properties from the current owners by way of eminent domain. That is an unfortunate action that may derail efforts to work cooperatively with the University toward creating a Greek living and learning environment on the Alpha Drive site. We have asked the University to postpone any such action until we have met again with President Crow.

It remains our hope that President Crow will respond positively to our plans to build the kind of project he originally outlined for the site, one in which all Greeks may participate and one of which we can all be proud. To that end, we have proposed a meeting date with President Crow for sometime in May or June. At that time we will present to him a definitive proposal for his consideration, one that addresses progam elements for the site, the financial ramifications of such a development, and a tentative timeline for the project.

Of course, if the project moves into the predevelopment phase, you will be called upon to provide your input in the process. Please let me know if you have any questions in the meantime.

Sincerely,

Jeff Abraham