The Bay St. Louis City Council voted last week to continue a month-to-month lease with the Alice Moseley Folk Art & Antique Museum, located in the L&N Historic Train Depot. The prior lease agreement expired on June 30, 2025, coinciding with the departure of the previous City Council.
Following the expiration, the Mayor’s Office notified the museum that the lease was no longer valid and that any new agreement would require review and negotiation. City officials asked that the newly sworn-in Council be given time to finalize the municipal budget before addressing a series of expired lease agreements across multiple city-owned properties.
However, ahead of any formal workshop or discussion, Alice Moseley Museum Executive Director McKenzey Northington submitted a proposed lease to the City Council and requested a vote. Councilman Kyle Lewis added the proposal to the meeting agenda in the exact form submitted by Northington. The proposed lease failed in a narrow 4–3 vote.
The situation became further complicated when the museum submitted two different lease versions, raising questions about the occupancy of shared space within the depot building. Portions of that space are currently used by Hancock County Tourism, a governmental agency for which Northington also serves as Executive Director. The City has not received any notice from Hancock County Tourism regarding plans to vacate the premises. Additionally, there were discrepancies in the total square footage of the 2nd floor and what was proposed by the museum.
In the lease proposal, the museum offered to pay $5 per square foot in rent—an amount it deemed to be fair market value. However, independent research conducted by the City’s administration indicates the actual fair market rental value of the space is between $18 and $23 per square foot. As a nonprofit, the museum is not required to pay full market rate, but any reduction requires documentation verifying its nonprofit status and financial standing.
To date, the museum has not responded to the City’s formal requests for organizational documents, including bylaws, proof of financial audits, and a list of its Board of Directors. These records are essential for the City to evaluate the museum’s eligibility for subsidized rental rates and continued financial support.
Historically, the museum has operated rent-free within the depot and in recent years contributed only $150 per month toward utility costs. Meanwhile, the City incurs substantial annual expenses, over $44,500 per year, to maintain the facility, including electricity, water, and insurance—costs that significantly exceed the museum's contributions.
During the most recent Council meeting, Northington claimed that the museum’s month-to-month lease status is jeopardizing its grant funding, though no documentation or specific grant details were provided to support that assertion.
According to publicly available IRS filings, the Alice Moseley Museum reports less than $50,000 in annual receipts.
The City of Bay St. Louis remains open to continuing discussions with the museum and other tenants as it works to balance the responsible stewardship of public property with support for cultural and community institutions.