This comment was posted on the Sentinel site in response to their article regarding the sale.
First, a couple of disclosures. My wife is both a member of Pi Beta Phi and a former board member of the Arrowmont School. I am an attorney, though not from Tennessee, who knows something about non-profits and their boards.
Second, I am concerned that the members of the Grand Council have apparently engaged in secret, back-room deals with a single, favored purchaser.
Third, I have been wondering whether they received good legal advice, or an opinion from the appropriate attorney general. I am concerned that they are apparently violating their fiduciary duties of loyalty, prudence and good faith, by reportedly rushing into a sale of valuable real estate, without first exposing it to public bid.
Fourth, if my concerns are correct, it may be that someone could seek rescission of the sale to the unnamed “developer” if the sale were to proceed in spite of the objections already raised by other posters.
Fifth, if that is not possible, it may be that someone could seek restitution from the developer and the members of the Grand Council who have participated in this sale.
Finally, it is my concern that the members of the Grand Council have apparently ignored their fiduciary duty to protect and preserve their charitable endeavor, the Arrowmont School of Arts and Crafts in Gatlinburg. Pi Beta Phi, through its Grand Council, has represented, expressly and impliedly, to donors, to the State of Tennessee, to the public and to others that this school would be maintained by Pi Beta Phi into future and has encouraged them to act in reliance upon these representations. Among other things, Pi Beta Phi and the Grand Council have encouraged Arrowmont School to prepare for its one hundredth anniversary, which will not occur until the year 2012. I believe that Pi Beta Phi and the Grand Council should not be allowed, by the Attorney General of Tennessee or anyone else, to renege on these representations and encouragements, and to take their announced actions that will result in the end of this fine institution as we know it.
In sum, I’ll bet dollars to donuts that the Grand Council could raise an equivalent amount of money, by putting the property out to public bid after receiving expert advice, after deeding over to the Arrowmont School the small amount of land that is presently occupied by the school.
