The Pi Beta Phi Fraternity launched a “We Heart Gatlinburg” (but not Arrowmont) website to demonstrate “Pi Beta Phi’s Commitment to the Gatlinburg, Tennessee Community.” Yeah, we know.
09.09.08–The Pi Beta Phi Foundation posted FAQ regarding the Foundation’s function. It can be accessed here: Pi Beta Phi Foundation FAQ
09.02.08–Updated FAQ posted at www.pibetaphi.org, which can be accessed at this link Pi Beta Phi FAQ2 9/2/08 as well.
Link posted on the WBIR site:
As many of you know from our home page message on the Pi Beta Phi Web site and
other means of communication, we are in negotiation with a Gatlinburg developer to sell
the Fraternity’s property currently leased to Arrowmont School of Arts and Crafts. Since
this announcement was made, we have received a significant number of calls and e-mail
messages commenting on the possible transaction. Many of these messages have been
extremely supportive while some have expressed concern about the ramifications of a
sale. It is impossible to respond personally to every message, but we will attempt to give
you more background information so you will have a better understanding of how we
arrived at this decision.
Before the potential sale was announced, all former members of Grand Council with
strong ties to Arrowmont were personally called as were the alumnae club presidents of
clubs that have been strong supporters in the past. Other important Arrowmont supporters
were also contacted. All current Fraternity officers were sent a letter informing them and
an announcement was posted on the Web site. All of this occurred before there was any
mention in the Knoxville or Gatlinburg papers. There has been overwhelming
understanding and support among those Pi Phis for this decision. Many of these
wonderful women have devoted years to supporting and furthering Arrowmont.
First, this Council and several preceding Councils have been extremely challenged with
the direction of Arrowmont, both economically and philosophically, as the School’s
mission to be an independent organization has diverged from the Fraternity’s mission for
its membership. This has been particularly true since Arrowmont’s incorporation in
1991. It was never the intention of either organization for Pi Phi to financially support
Arrowmont in order for the School to exist. Arrowmont has and continues to be unable
to be self sustaining even with the continued support of Pi Phi clubs and chapters. Its
future is short lived without a large infusion of cash from an independent source. Current
financial projections give the School three-to-four years before all of its cash reserves are
depleted.
Discussions about selling the land have come up in previous Councils, but this is the first
time that a serious unsolicited offer has come to Pi Phi. We are under a nondisclosure
agreement, common in transactions like this, so we can not discuss specific terms of the
possible transaction. We can say that the developer seeking the purchase of this property
has a solid track record of creating quality projects. This is an opportunity for
Arrowmont to receive a large infusion of cash. If completed, the transaction may prove to
provide new life to Arrowmont. To do nothing will ensure a rapid decline. Again, the
Fraternity can not provide enough support to stop the operating shortfall. We can not hold
on to the land like a trophy only to watch the school disappear.
We do know that with the exception of our older members and the regional appeal to
areas near Gatlinburg, today’s members do not have the attachment to an arts and crafts
school that our total membership once had to the Settlement School. The cause is not
relevant to their lives, it is impossible to sell as a philanthropy for our chapters, and it
does not benefit a large number of people. It is not a cause they will continue to support
outside the required contributions.
Total Pi Phi contributions to Arrowmont equal approximately $300,000 per year, of
which the Nashville Alumnae Club contributes approximately 25%. Since 1991, we have
continued to require clubs and chapters to support Arrowmont. The average donation per
club member, excluding the Nashville Club support, is between $1-$2 per year per club
member. The percentage of members donating to Arrowmont as individuals is less than
1% of the Fraternity membership.
Finally, we would like to address the issue of our heritage and our traditions. Pi Phi was
the dream of some very forward thinking women who were not bound by tradition. Pi Phi
has continued to thrive because its leaders recognize when change is needed. Our original
name was changed because we could not compete on new campuses with Greek lettered
groups who were starting to flourish. Arrowmont is a product of change. Arrowcraft was
closed because we needed to change. Chapters close and others open because campus
conditions change. Unchanged are our values and our original mission of education for
children, literacy. It is one of society’s greatest needs today just as it was in 1912.
We promise to keep you informed during this process. We ask that you engage with us
with the respect and acknowledgement that we are all sisters in Pi Beta Phi and each of us
wants what is best for the Fraternity.
In Pi Beta Phi,
Grand Council
STATEMENT POSTED 8/20/08, NO DOUBT IN RESPONSE TO HEAVY CRITICISM. NOTE THE AMBIGUOUS LANGUAGE.
Gatlinburg Property Sale Frequently Asked Questions
1. Why has Pi Phi made the decision to sell the property now leased by Arrowmont?
We were approached by a large development group with a very good offer. Considering the
financial needs of Arrowmont and the long-term benefits to the Fraternity, it was
responsible and appropriate to seriously consider the offer. The positives of the offer
outweigh any negatives. Even so, the decision was very difficult.
2. What will the Fraternity do with the proceeds from the transaction?
The proceeds from the sale will be directed to a number of different areas. They include:
A gift to the Pi Beta Phi Elementary School of a minimum of $1 million for an
endowment or to establish a foundation.
Up to $7 million investment in the future of Arrowmont plus $2 million for facilities.
This amount is based on closing the transaction as currently proposed.
Seed money for the Fraternity Housing Corporation to finance needed renovations
of older houses and new chapter houses.
A gift to the Pi Beta Phi Foundation restricted to supporting the philanthropic and
educational goals benefiting the Fraternity.
Fraternity investments and operating funds.
3. What is the history of the Pi Phi-Arrowmont relationship?
1912 –– Pi Phi founded a Settlement School in Gatlinburg. Like so many of the early
20th century settlement schools in Appalachia, its purpose was to educate children
and improve their isolated rural communities.
1940’s –– The school started to hold summer crafts classes to encourage and
preserve the mountain crafts.
1968 –– Sevier County assumed complete control of education for the children who
had been served by the Settlement School. The school partnered with the University
of Tennessee to provide arts and crafts classes and Arrowmont was born. It was
operated and funded by the Fraternity.
1991 –– Arrowmont became a separate corporation with the expectation that it
would become self-supporting. The Fraternity retained ownership of the land and
several buildings. Pi Phi continued to make contributions and to require its clubs and
chapters to make contributions.
Arrowmont has hosted numerous Pi Phi meetings and there is an annual Pi Phi Arts
Weekend popular with some alumnae. Prominent Pi Phi leaders have worked to support
and further the mission of Arrowmont. Specifically Grand President Emerita Jean Scott
led a $2.3 million capital campaign to build a dormitory and the wood studio. The
Nashville, Tennessee, alumnae club has been a large benefactor of Arrowmont through
the proceeds of their Christmas Village. Other alumnae clubs have raised money for
Arrowmont outside of the required donations. Three members of Grand Council sit on
the Board of Governors as ex-officio members. Today Pi Phi contributions from clubs,
chapters, the Fraternity and the Foundation total approximately $300,000 per year.
4. How is this decision to sell the property consistent with the Fraternity’s mission
and vision?
Pi Phi is committed to its mission and vision of supporting the development of our
members, benefiting society and becoming a premier women’s organization. Member
income alone cannot support these goals. We have made a strong commitment to the
original Settlement School mission of literacy for children. This need continues to be real
and it is urgent. The money from this sale will allow us to commit resources toward that
cause. Literacy is a cause that our members support. The majority of our members do not
relate to or support arts and crafts education outside of the required donations.
5. What will happen to Arrowmont?
We hope that this infusion of cash will allow Arrowmont to clarify their mission and will
allow them to have the funding to continue, if that is their decision, without any future
obligation to or dependence on Pi Beta Phi.
6. What will happen to the Settlement School?
The Settlement School ceased to exist in 1968. The Gatlinburg Pi Beta Phi Elementary
School occupies Fraternity land that is not part of this transaction. The Fraternity will use
proceeds from the sale for an endowment for the school or to establish a foundation, which
we consider the legacy of our original and primary mission in Gatlinburg.
7. How much does Pi Phi contribute annually to Arrowmont?
Total contributions from clubs, chapters, the Fraternity and the Foundation total
approximately $300,000 per year. Approximately 25 percent of that total is from the
Nashville, Tennessee, alumnae club.
8. Why doesn’t Pi Phi deed over the land now occupied by Arrowmont facilities
to the School?
Pi Beta Phi has invested and cared for this property for almost 100 years. It is the financial
security for the Fraternity. To give it away would not be in agreement with our mission.
9. What legal guidance has Pi Phi had in this transaction?
Our general counsel and tax attorney have been consulted every step of the way. The
Fraternity has also retained local counsel in Tennessee.
10. Why doesn’t Grand Council bring this matter to a vote before the Pi Phi
membership at the next annual convention?
According to the governing documents of Pi Beta Phi Grand Council is charged with
conducting the business of the Fraternity. Only issues affecting our governance are
brought before the convention body for a vote according to the Constitution and
Statutes. This business decision does not impact our governing documents.
ORIGINAL STATEMENT POSTED 7/10/08:
Pi Beta Phi in Negotiations With Gatlinburg Developer
Grand Council has informed Fraternity officers and former members of Grand Council that the
Fraternity was approached by a party interested in purchasing Fraternity property currently leased
to Arrowmont School of Arts and Crafts in Gatlinburg, Tennessee. It is anticipated that an
agreement may be reached as early as September. “This is an historic opportunity for Pi Phi and
also for Arrowmont,” said Grand President Emily Tarr. “Pi Phi came to Gatlinburg in 1912 to build a
Settlement School with the mission of educating children. We were faithful to that mission until
Sevier County assumed control of the school in 1968. Our work in Gatlinburg brought education,
healthcare and economic development to the area. This development is another opportunity to
benefit the community.”
Pi Phi’s efforts to assist the economic development of Gatlinburg began as an outlet for regional
crafts and evolved into preservation and education for those artisan skills through the Arrowmont
School of Arts and Crafts. Arrowmont became an independent corporation in 1991, but Pi Beta
Phi Fraternity, Foundation, alumnae clubs, collegiate chapters and individuals have continued to
support the school through generous financial contributions. Arrowmont holds great affection
among members for its historical significance to the Fraternity. The members of the Arrowmont
Board of Govenors are considering several options regarding the future of the crafts school.
“It’s not an easy decision to leave Gatlinburg after almost 100 years,” says Mrs. Tarr. “But our
founders created Pi Phi to be a living, thriving organization with extension as a goal. We now have
the opportunity to extend our literacy vision, but we will always be grateful for the opportunity to
realize that vision in Gatlinburg. “
