On the final day of 2024, in a special-called open meeting, the Brookhaven Board of Aldermen and mayor voted to purchase the property at 101 West Chickasaw St. The property will be used as the new City Hall location, with a drive-through for water department bill payments, a new city court room, large public board room, and a new park, as well as expanded parking availability.

The City is acquiring the property through a lease-purchase agreement — one Board Attorney Bobby Moak said has been approved by the Attorney General’s Office and Department of Audits.

In December, the Lincoln County Board of Supervisors agreed to pay $2.745 million to the City for its 20% stake in the government complex where City offices are currently located. The buyout is set to be paid in full by Dec. 31, 2025, or the date the City has vacated the premises, whichever is later. Attorney Greg Malta said the County would likely use a bond issue for the buyout, and does not plan to increase tax rates.

The purchase price is $3,425,000. According to the agreement, and discussion in the meeting, the City will pay all of the amount at one time, except for $5,000, on the closing date.

“The City agrees to pay as Base Rental under this Lease annual payments in the amount of $1,000, commencing January 1, 2026 …, payable on the first day of each year thereafter during the Lease Term for the first four (4) years. The final Base Rental payment, and full and final payment of the Purchase Price, of $1,000 shall be paid on the last day of the Lease Term,” according to the agreement.

Representing 101 Chickasaw LLC, attorney Brady Kellems said the “triple net lease” requires the City to pay insurance, taxes, and upkeep from the beginning of the agreement. The seller, 101 Chickasaw LLC, will also keep insurance on the property until the sale is officially complete.

Alderman-at-large Don Underwood expressed concern that the City would not own the property outright until the end of the five-year term, at which point it would not be required to pay taxes on the property.

“So we’re stretching it out for five years for the (owner’s) tax credit,” Underwood said.

Following the meeting, Moak clarified that since the purchaser “is a governmental entity using the building for government purpose … it may not be taxed. Counties don’t usually tax that in Mississippi, anyway.”

In regard to tax credits for the owner, Moak said the property is on the National Historical Register, and there are certain benefits a company may get from owning a historical building for a certain period of time.

“One of the requirements of getting the building was to allow that period of time, so the owner could seek those benefits,” the attorney said.

The Board agreed to move ahead with the lease-purchase, under condition of certain wording being “cleaned up” in parts of the written agreement and its further review by attorney Moak.

Ward 3 Alderman Rev. Charles Caston Sr. made the motion to approve the purchase, seconded by Ward 2 Alderman Shannon Moore. Ward 1 Alderman James Magee Jr. and Ward 5 Alderman Fletcher Grice also voted in support of the purchase.

Underwood and Ward 6 Alderman Andre’ Spiller voted “no,” and Ward 4 Alderman Jeff Henning abstained from the vote. The final vote was 4-2 to move ahead with the purchase.