Roswell will add ownership of another historic site, Mimosa Hall to its repertoire.
At the Aug. 14 city council meeting, the city's Bond Counsel, represented by Brian Luckett and Jim Woodward of Gray Pannell & Woodward LLP, presented the terms of the purchase of historic Mimosa Hall.
Roswell will acquire ownership of the historic home via a lease-purchase agreement through Georgia Municipal Association.
Over a 10 year period, the city will make installment payments to pay off the amount borrowed to purchase the home.
Mayor Jere Wood inquired the amount and the terms of repayment.
“The principal amount to be financed is $2,950,000 plus the cost of issuance,” according to Brian Luckett.
“Funds in the amount of $340,000.00 are included in the Fiscal Year 2018 Budget to fund the debt service associated with this installment sale agreement,” as stated in city documents.
Wood clarified that the 120 monthly payments would be sourced from the general fund and confirmed that a property tax increase would not occur.
In accordance with state law, which “requires municipalities to hold a public hearing when acquiring real property using lease-purchase financing,” residents had the chance to speak.
Janet Russell expressed she was in favor of purchasing Mimosa, but inquired about purchasing the home outright.
According to Luckett, the lease to purchase option is the city’s “most financially advisable move.”
He added that due to capital funds being allocated towards other projects, the funds to purchase outright were not available at this time.
Councilman Michael Palermo motioned to approve with a second by Councilman Donald J. Horton and the motion carried.
Horton then followed with a motion to purchase furnishings within the home.
He noted that funding in the amount of $100,000 has been allocated within the budget for the operation and maintenance of Mimosa Hall.
An appraisal was conducted of the items Horton recommended purchasing by Ashley Glass of Atlanta Estate Sales Company.
The listed items were valued at approximately $50,000, but an agreement was reached for the city to acquire the furnishing for a max price of $30,000.
Councilman Marcelo Zapata expressed that more emphasis should be placed on the appraisal and purchasing items at proper cost.
Councilman Michael Palermo expressed some concern over items selected for purchase and the general amount over exact.
Wood inquired if Palermo wished to make a motion to delete specific items, to which the councilman declined.
Friends of Mimosa President Steve Gibson spoke on behalf of the organization. He expressed this was a “singular opportunity for us to capture original items within home” and the city should “capitalize on this before these items go up for auction.”
Gibson expressed that “$30,000 is great start to get things underway,” and noted Friends of Mimosa’s intentions to purchase more from within the home.
Wood posed a friendly challenge to the Friends of Mimosa to fundraise the next furnishing expenditure and asked that the community support those efforts.
Following the close of public comment, Zapata countered that the items should be purchased at full value, then motioned to buy the entire list, which includes all furniture and assets for $60,210.
Wood stated the “motion was out of order and not accepted” as council was not considering doubling the proposal.
Palermo chose to abstain from the vote.
Motion passed with Council members Jerry Orlans, Donald J. Horton, Lori Henry, Nancy Diamond and Marcelo Zapata voting in favor of the $30,000 expenditure.