New Haven Independent

Greg Pepe (in photo) has been elected as a new, younger president of the charmingly un-modern Institute Library, which was founded in 1826. In his first act at the library board’s annual meeting this week, Pepe presided over passage of a belt-tightening budget. He’s also presiding over a new direction for the membership-only book-lovers’ club, which is tucked into a second-story nook on downtown Chapel Street.

As a first step in cutbacks forced by a sinking economy, the library will close on Fridays, according to the budget passed Monday. Pepe hopes the closing will be temporary, but he is by no means certain.

Future In Peril

In a meeting at a round wooden table amid shelves of books, Pepe outlined his thoughts for keeping the institution afloat. The library delivers books to your door and there is no late fee. Membership is gloriously inexpensive. The library aesthetic has thus far not embraced a computer, however. And a professional fundraiser’s shadow has not crossed the Institute’s threshold either: That, in Pepe’s view, is imperiling the library’s future.

“We’ve been relying for years much too heavily on the endowment,” he said, referencing approximately $100,000 a year which the Institute has been drawing down annually to pay its handful of employees and meet costs.

That might work okay if the endowment continued to grow at an 8 to 9 percent rate, as was the case until this year. Bill Moffat (pictured), the dapper treasurer, however, delivered glum news: Between September 2007 and September 2008, the endowment’s value fell from $765,000 to $563,000.

“That’s a big hit,” said Pepe with quietly alarming candor. “At the current rate, of drawing down about $8,000 a month and assuming, as I think we must, that the $563,000 is not going to get larger any time soon, we have a window of maybe five years before we have to consider closing the place down. In three years, if we don’t turn things around, we need to make a contingency perhaps to sell the building and continue perhaps in a rental circumstance. We all hope it doesn’t come to that.”

A trustee of the library, Lee Titus, said that the endowment loss was about 20 percent, which makes it, though bad, less than the 30 percent across the board hit taken by many individuals and non-profits, he said. Also, Pepe has appealed the tax bill for the building, so that it will go down from $12,000 to $9,000, reflecting a partial non-profit exemption.

But that was scant good news, especially when the Institute reviewed the income side. The only other revenue the library has is $30,000 from a downstairs tenant. But oil costs are also rising, Moffat reported, and membership, alas, also dropped 39 book-loving souls to 227. Since membership fees are only $25 — finally raised from $15 where it stood for many years (!) — not a lot of economic relief could be forthcoming from here.

“Complacent Too Long”

So what to do?

Pepe, an attorney, said he has served on boards that have turned around other New Haven organizations. He proposed finding grant money to hire a full time development officer, preferably on a multi-year basis. The board approved the suggestion, and Pepe said he was already in touch with the Community Foundation For Greater New Haven. “We’ll let them know our dire situation and that New Haven can’t afford to lose this historic resource.”

“How about a website,” suggested Eva Geertz, the mother of baby Henrietta Geertz (in photo at the top of the story) and the newest and youngest member of the board.

“Terrific,” said Pepe.

“Institutelibrary.org” is available,” she said. “It’ll cost us $15.”

“Sold,” said Pepe. Other plans suggested by Geertz and endorsed by Pepe include reaching out to the younger downtown crowd that loves books, such as those who go to the Anchor Bar for literary evenings, and a more vigorous fundraising effort. The last large gift that came to the Institute, Moffat reported, was a $5,000 request some fifteen years ago and that was restricted to use for librarian education. So “vigorous” is going to be an understatement.

But Pepe is optimistic. “This is a beautiful place, like a private club atmosphere. We can rent it out. We can find young people who will appreciate it. We can change without changing its character. We’ve just been complacent too long. It happens to lots of organizations.” He said the plight of the Institute reminded him of Mory’s, Yale’s private eating club. “They went into bankruptcy and changed their ways and now they’re back.”

But that’s obviously a fate he’s going to work energetically for the Institute Library to avoid.

Those interested in supporting the library should click here to email Pepe.