This paper describes the problems and challenges faced by nontraditional magnet schools in Chattanooga, Tennessee. The first magnet schools that opened in 1986 and 1991 were based on the Paideia model proposed by Adler (1982). Due to a high level of parent demand, the school district closed three of the poorest performing schools and reopened them as Paideia schools. To promote integration, three schools (two elementary and one high school), called the Phoenix schools, also featured in a performing-arts program. Paideia education aims to prepare students to earn a living, to assume the duties of citizenship in a democracy, and to learn throughout life. The three magnet schools have experienced positive outcomes in the areas of test scores, school climate, grades, college admissions, attendance, and student behavior. (LMI)