MARIETTA - Efforts to help the Marietta Museum of History expand its operations into the first floor of historic Kennesaw House took a step forward Thursday night.

Downtown Marietta Development Authority Chairman Tom Browning appointed a three-man subcommittee to negotiate with the MMH on its desire to expand from its home on the second and third floors of the DMDA-owned Kennesaw House to the first floor, which has remained vacant for more than a year.

Browning appointed DMDA members Mayor Steve Tumlin, Johnny Fulmer and Roger DeBoy to the subcommittee.

Browning said he wasn't entirely sure who the subcommittee would be negotiating with at the Marietta Museum of History.

"I don't know who the real spokesman is over there. I'm confused. Sometimes I think it's the Marietta Daily Journal," Browning sarcastically told the DMDA.

DMDA attorney Tom Cauthorn said while the museum wants to move into the first floor of Kennesaw House, it can't afford the market rate that the DMDA wants to charge. The previous tenant paid $36,000 a year.

"The problem is that the museum needs additional space and the museum wants to lease the entire building, but the revenue that the museum has to support its projects is not sufficient to sustain the lease payments for leasing the entire building," Cauthorn said.

The Journal asked Cauthorn how he knows the state of the museum's finances and if he had he recently spoken with MMH Chairman Brent Brown.

"I haven't ever talked to Brent personally about it, but several years ago when I last discussed it with the volunteer attorney for the board, which was Fred Bentley Jr., those were the bottom line discussions," Cauthorn said.

"They needed more revenues in order to pay additional rent, and one of their chief revenue sources is the city of Marietta, and the city was not in a position, considering the economy at the time, to increase its commitment to the museum, so it's a difficult situation for the board and museum because they raise money, they make diligent efforts to raise money in the private sector, and they make efforts to use public monies as appropriate. And they want to expand their square footage, but they don't have a sufficient commitment from the city and from other private sources to fund the lease," Cauthorn said.

Browning was asked if he had talked to Brown about the museum's ability to pay when they conducted a meeting about it last year - taking in consideration that the museum's financial situation may have changed since Cauthorn's talks a few years ago.

Responded Browning: "Well, they didn't tell me that."

Brown, who was not at the meeting, said he was puzzled how Cauthorn and Browning knew so much about his museum's finances.

"I don't know how they would be aware of our financial condition, which is extremely good by the way. They don't know what we can afford and we don't know what the price is," Brown said.

True, the former tenant paid $36,000 a year, but the floor has remained vacant for a year since then, Brown said.

"They're talking market rates, yet the property's been empty for a year. What makes more sense, to have that vacant and not helping anyone or have a bigger more vibrant museum that is a draw for tourists and benefits merchants on the Square?" Brown asked.

Brown said the real story is that the DMDA is holding the first floor hostage until the City Council agrees to its parking deck proposal.

"We've been used as a chess piece in that parking thing," Brown said.

Brown is referring to Browning's proposal of deeding Kennesaw House to the city in exchange for the city allowing the DMDA to charge for parking around the Square area. Were the city to allow the DMDA to charge for parking for a couple of decades, it would pay for the construction of a DMDA-owned parking deck off Mill Street.

Currently, the City Council is not charging for parking around the Square.

"They don't take any revenues," Browning said.

"It's sitting there being squandered. I mean, I hate to use that word, but they are squandering. Somebody said that's a valuable asset. We can't give that up. Wait a minute. They have squandered a valuable asset," he said.

Browning said while he sent the City Council his proposal last fall, he has yet to hear back from a council majority on what they think about it. Browning said the DMDA subcommittee could in the meantime "come up with an interim arrangement" with the Marietta Museum of History about leasing the first floor of Kennesaw House, while he waits on a response.

"Hopefully we try to get some dialogue between us and the council about what we can work out with the parking lot and the Kennesaw House, but it seems like that's not near as important as Astroturf on the Square," Browning said, referring to a recent proposal by city officials to cover Glover Park in artificial turf.

Tumlin remained quiet during the meeting. Afterwards, he said he was pleased Browning had appointed a committee to begin negotiations.

"The other two members of this appointed committee are good businessmen and have the interest of the DMDA, city and MMH at heart. I felt good that the direction of the DMDA board was to discuss the MMH possibly taking over the first floor of the Kennesaw House," Tumlin said.

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In other business, three of the eight seats on the DMDA were filled in elections.

The DMDA, which was created by constitutional amendment and implemented by the General Assembly to help redevelop downtown Marietta, is composed of two ex-officio members - the Marietta Mayor and chairman of the Cobb Board of Commissioners - along with three members elected by downtown property owners and three members elected by the owners of downtown businesses.

One property owner's seat open on the DMDA was held by mortgage broker Carey Cox, who resigned in December after selling the Atlanta street building that housed his family's printing business. Elected to that seat was James Eubanks, son Gary Eubanks, who, next to Councilman Philip Goldstein, is believed to be the largest downtown property owner in Marietta.

In addition, Dave Reardon, owner of Shillings Restaurant, who holds a merchant's seat, and attorney Al Johnson, who holds a property seat, were reelected without opposition.

Reardon, who was served 28 years on the DMDA, is the senior most member. Some accuse him of being a rubberstamp for Goldstein, a charge Reardon denies.

"I can assure you that's not the case and never has been the case," Reardon said, noting his loyalty is to the downtown business owners.

Although Browning says there are several hundred downtown property owners and business owners eligible to vote in the DMDA elections, only about 30 turned out to vote Thursday night.

"That's because people are happy with what the DMDA is doing. You know the electors, when the government is doing well, then the electors are happy, and that's probably why a lot didn't come," Browning said.

Goldstein was the only council member present.