Children’s Home issues addressed

Dear Editor:

In order to clear up some of the confusion and allegations which seem to be swirling around relative to the Blount County Commission looking into the operation of the Children’s Home, I felt possibly it would be helpful if I address the issue.

First of all, let me say that the Blount County Commission enthusiastically approved the location of the Helen Ross McNabb Center and the New Hope Children’s Advocacy Center on properties which Blount County still owns adjacent to the Children’s Home. After receiving approval from the Blount County Commission, I approached the Board of Directors of the Children’s Home relative to an adult and children’s campus.

I assumed that the Children’s Home Board would be enthusiastic about the concept of an adult/children’s campus. I was wrong. I still do not understand the reticence of the Board of the Children’s Home relative to this idea, but be that as it may, I accepted it and decided to move on relative to locating these other two entities on property which Blount County still owns.

As I got more involved in the matter, I became more concerned relative to the operation of the Blount County Children’s Home. In order to determine what property still was owned by Blount County I pulled the Blount County Children’s Home file which is retained in my office. About that same time, a board member of the Children’s Home, Gary Farmer, who is also a Blount County Commissioner, advised me that the Blount County Children’s Home Board had attempted to amend their charter of incorporation without the requisite permission legally required from the Blount County Commission.

In reviewing the matter I found that the present Children’s Home Board was set up by a state charter in 1982. That charter specifically set forth the purpose of the Children’s Home as well as setting the board at nine members. At that point, I attempted and still am attempting to receive from the Blount County Children’s Home the names and dates of appointment of the nine members. I still have not received that. I realized, as an attorney, that the attempt by the Blount County Children’s Home Board to amend the charter without permission from the Blount County Commission was not a legal act. Nor was their attempt to expand the board to 15 members a legal act. I felt it requisite on me as the Blount County Mayor to call this attention to the Blount County Commission for its directive to me about the situation. I did that.

In further studying the file, I determined that a motion was made some time ago by Commissioner John Keeble for preliminary work (surveys, etc.) to be done in order for the Blount County Commission to determine whether it would be appropriate to deed a certain amount of property to the Blount County Children’s Home Board. Evidently, that survey work was done, but the matter was never brought back before the full Blount County Commission. It is required by law that before the county can deed over any property a proper resolution must be passed by the Blount County Commission. This was never done.

Somehow the entire matter seemed to have, in essence, slipped through the cracks and my predecessor signed a warranty deed which was presented to her deeding over property to the Children’s Home. This, of course, without resolution by the Blount County Commission, was not a proper deeding. In addition, even if the deed had been legal, there was a reversion clause in the deed wherein the property reverted to Blount County if children ceased to be housed at the facility. This, of course, occurred as well. As Mayor, again, I felt that I should call this to the attention of the Blount County Commission. I did so.

Also, in the 1930s, Dr. Ellis willed to the Children’s Home monies creating an endowment. The Children’s Home was to receive the interest off of this endowment so long as the property was controlled by Blount County. I realized that Blount County was in a fiduciary capacity relative to this endowment and that until such time as a judge dictated otherwise the monies should not be paid under the present state of chaos. I felt that this was a matter that addressed itself to the Blount County Commission as well and that I would be remiss in my duties as Mayor if I did not call it to the attention of the Blount County Commission. I again did so.

Lastly, when I reviewed into the Children’s Home file, I also looked at their annual audit. I was astounded to find that two years ago the Children’s Home operated at a loss in excess of $200,000. This loss approximated 1/3 of their fund balance and made me suspect relative to the caliber of management in the organization. This is unheard of for a not-for-profit organization in Blount County to operate at that drastic a deficit. I was very concerned about how this kind of operating loss could have incurred inasmuch as the Blount County Children’s Home Board is a “discretely presented component unit” of Blount County government. I felt that this, too, should be brought to the attention of the Blount County Commission. I brought this to their attention.

The Blount County Commission now has authorized me and our attorney to attempt to work the matter out with the Blount County Children’s Home. Negotiations are taking place. Let me be very clear on one matter, however. At no time have I, and at no time will I ever, entertain any suggestion that any of the properties which are still owned by Blount County or which purportedly were deeded to the Blount County Children’s Home be sold over to a private developer. I do not know how this rumor started. It is another one of those astounding kinds of statements that seem to take on legs of its own. It is absolutely and blatantly false. That entire property forever should be used as an adult and children’s campus.

Of interest, however, is the fact that the Blount County Children’s Home attempted to have the property, which was not appropriately deeded to them, zoned commercial by the city of Maryville. I have no idea why that attempt was made, nor have I been able to find that out. A number of commissioners have requested I find that information out, but I can not seem to get an answer from anyone relative to whether the Blount County Children’s Home Board intended to sell part of the property out to a developer for commercial purposes.

However, I am extremely confident that this commission would never approve a sale of any of that property to a private developer. Rest assured that I am firm in the commitment I made relative to never supporting that kind of a misuse of that property.
I trust that this will answer some of the questions being posed. It has been a bit difficult to determine exactly what the present mission of the Children’s Home is inasmuch as it seems to be rather multi-faceted and convoluted to say the least. This, too, is a matter for the Blount County Commission to address.

Sincerely,
Jerry G. Cunningham,
Blount County Mayor
341 Court St.
Maryville, TN 337804-5906