Wisconsin Chapter

President's Column by Richard A. Zurowski, SRA

With a Good Guide We Can Climb Mountains Together

I hope everybody is enjoying their summer in Wisconsin, taking time to enjoy our state and blow the froth off a cold one with friends and family. If your desk looks anything like mine, those free moments are difficult to arrange. Managing our business and personal lives presents plenty of mountains to climb.

Thank you to everybody who participated in the online survey. Your input is greatly appreciated by your chapter and the national office in Chicago. Some notable results from the survey include a desire for more online educational opportunities, maintaining the same requirements for designation, and writing of the demonstration report is the primary reason for not obtaining a designation. Those that have completed the demonstration report have repeatedly emphasized its value as a learning tool, therefore, it is unlikely to be eliminated as a requirement for designation. Part of what makes the designations special is the challenges and sacrifices necessary to demonstrate your knowledge and the ability to communicate that knowledge to your peers.

As a state chapter it is difficult for us to sponsor online education. National is aware of the time and cost savings to the student for online education and is continually developing more online educational opportunities for the membership. While we would like to provide education at locations throughout the state, we have found attendance to be highest at those locations near Madison, Milwaukee, and Green Bay, therefore, we will continue to focus on those locations. Some alternative educational topics planned for 2004 include GIS, software vendor showcase, liability insurance, and market trends. These offerings will be produced locally and presented at a lower cost per attendee.

On June 9, 2003, Freddie Mac dismissed its top three executives in response to a massive accounting scandal. As you may recall, Don Moore, 2002 WI Chapter President, identified the problems associated with Fannie Mae and Freddie Mac as Government Sponsored Enterprises. Don presented the problems with GSE's to our chapter and implored our national representatives to support the Shays-Markey Bill, that would have repealed the GSE's exemption from the SEC and potentially prevented the malfeasance currently embroiling Freddie Mac. Fannie Mae and Freddie Mac are the driving force behind the way the residential appraisals are performed and are the leading proponents of AVM's. Perhaps now more of the political leaders will recognize Don's foresight and question the rational for granting a GSE status to these organizations and the appraisal process will become more of an integral piece of the mortgage underwriting process.


"Destiny is not a matter of chance; it is a matter of choice. It is not a thing to be waited for; it is a thing to be achieved." -- William Jennings Bryan


Treasurer's Report

The Chapter funds as of 06/30/03 are:

Primary checking account: $959.53
Money market account: $6,602.68
CD: $28,786.26

Total funds balance: $36,348.47


Board Meeting Minutes

May 15, 2003

President Richard Zurowski called the meeting to order at 12:20 p.m. at the WCAI Offices in Milwaukee, WI.

Members Present
Steve Stiloski, Chris Ruditys, Richard Zurowski, Doug Stangohr, Tom Swan, Tim Warner, Angela Kwasny, Tim Leberman, Kevin Zarem, Steve Vitale, Curt Kolell, and Detlef Weiler.

Secretary's Report
The secretary's report was approved as published in the last newsletter.

Treasurer's Report
Income and expenses for the first quarter were presented, reviewed and approved. A modest profit was shown for courses offered to date.

Old Business
The management contract between WCAI and CAR was discussed. The proposal included a 120 day cancellation provision as opposed to 30 days in prior agreements. Due to budget concerns, the 120 day timeframe was deemed too long, and therefore not approved. Further negotiations are pending, and the matter was thus postponed to the next meeting.

New Business
Future educational offerings were discussed, with upcoming classes reviewed per the schedule published in the last newsletter. Various new course ideas were presented in hopes of increasing the level of profitability and covering chapter operating expenses. Considered were shorter courses/seminars offered on a more regular basis, and/or offerings regarding local real estate issues and the state of our industry. Other options include seminars by local professionals - attorneys, professors, insurance groups - on a variety of real estate issues which may in turn expand the potential audience.

Tom Swan updated the board on current legislative issues. The proposal to eliminate the State Manufacturing Assessment Office may not pass. However, it would still be advisable to remain active and contact your representatives on this issue. On a related matter, it was suggested that members become more active in legislative issues impacting our profession. A proposal was made to keep members better informed as to pending legislation and the appropriate representatives to contact, via either the newsletter or E-Mail. Finally, there are also two vacancies on the Wisconsin Real Estate Appraisal Board, and anyone interested is encouraged to apply.

Lastly, the board reviewed the items recently presented in the 60 day notice of amendments to the Appraisal Institute Bylaws and Regulations. They are to be considered at the next regional meeting which will be attended by President Richard Zurowski.

There being no further business, the meeting was adjourned.

Detlef H. Weiler, MAI -Secretary
Wisconsin Chapter of the Appraisal Institute


WCAI Under New Administration

The following article appeared in the June 13th issue of the Business Journal:

Ruditys Starts Own Association Firm
Realtors group rankled at his pursuit of clients
By: Kathy Bergstrom

The executive who ran the Commercial Association of Realtors Wisconsin has started his own association management company and has brought three staff members and two associations with him.

Christopher Ruditys, who was executive vice president of the group, is the chief executive officer of Wisconsin Association Management L.L.C. Ruditys, 33, had been executive vice president of the Commercial Association of Realtors since late 1992.

Ruditys said he proposed in fall 2002 forming his own association management company to provide management services for the Commercial Association of Realtors and the seven other real estate groups that the association managed. His proposal would have saved the association about $27,000 annually, he said.

The board rejected the idea in April, and Ruditys said the board asked him to resign in May. He said he declined to resign and the board terminated him but has since agreed to honor his contract, which expires Oct. 1.

Dan Jessup, the Commercial Association of Realtors board president, declined to comment on Ruditys' employment status.

John Periard, who was the association's director of public affairs, has been named the new executive director.

The Commercial Association of Realtors had management agreements with seven other real estate-related groups: the local chapter of the Institute of Real Estate Management, Building Owners & Managers Association Wisconsin, Wisconsin Commercial Real Estate Women, the Wisconsin Chapter of the Appraisal Institute, the local chapter of the Association for Facilities Engineering, the Wisconsin Chapter of Certified Commercial Investment Member organization and the Real Estate Alliance for Charity.

Ruditys' new company is now managing the Appraisal Institute and the Association for Facilities Engineering. Ruditys is marketing his company to the other groups.

The new company will focus on getting contracts with real estate associations at first but will broaden its focus to other associations, Ruditys said.

"We have a young entrepreneurial staff that's extremely successful with what we've done," he said. "We have an excellent, proven record of success."

Two former Commercial Association of Realtors employees have joined the new company: Doug Stangohr is chief financial officer and Heather Westgor is director of communications. A third employee, Brian Parrish, will leave CAR at the end of June and become director of business development.

Wisconsin Association Management will be financed with revenue from Ruditys' real estate holdings, silent partners, and Ruditys' father, Joseph, a former president of the Milwaukee firefighters' union.

Hiring Replacements

Jessup said CAR has temporary staff and will hire permanent staff.

Jessup said it's disappointing that Ruditys' initial staffing and marketing plan includes the "aggressive pursuit" of association employees and groups managed by the association.

It would have been better for all of the real estate organizations to remain under the same umbrella, he said.

"The synergies that are achieved through our association affiliation have been very positive on a lot of different fronts," he said.

The change in leadership provides the opportunity to evaluate policies and procedures and do some strategic planning, Jessup said. The group will work further to improve on current member benefits and services, he said.

Janelle Cox, president of the Building Owners & Managers Association Wisconsin, said the board is keeping its current contract in place with CAR. The existing contract expires at the end of the year.

John Savage, the immediate past president of the Building Owners & Managers Association Wisconsin, said his group has concerns about the staff changes.

"Because our success is so intertwined with the management of our association, we're very concerned with this," he said.



New WCAI Contact Information

Below is “NEW” information for the staff dedicated to administering WCAI:

Wisconsin Chapter of the Appraisal Institute (WCAI)
223 N. Water Street, Suite 300
Milwaukee, WI 53202
Phone: (414) 271-6858
Fax: (414) 271-6868

E-Mail Addresses:
CEO — Christopher Ruditys
ruditys@wamllc.net

Director of Communications — Heather Westgor
heather@wamllc.net

Chief Financial Officer — Douglas Stangohr
doug@wamllc.net

Director of Business Development — Brian Parrish
parrish@wamllc.net



Election of Officers & Directors

The Nominating Committee will soon begin the process of nominating individuals to serve as Officers and Directors of the Wisconsin Chapter of the Appraisal Institute. If you are interested in running for a position, please contact Past-President Don Moore at (262) 789-6788 or the Appraisal office. We would like you to participate!