City agrees to lease Hancock Street property for a children’s museum and related activities.
The New Bern Board of Aldermen has approved an agreement to lease city-owned property at 408 Hancock Street for $1 a year for five years to the We Can Be Association during their meeting on Nov. 13, 2025, in New Bern, NC.
September meeting
Karen Zachreus, the founder of the Children’s Museum of New Bern, and Jane Dail, a We Can Be Association board member, asked the Board of Aldermen on Sept. 23 to consider leasing the property so they can use it as a children’s museum and related activities for $1 a year for five years. She said she wanted to give “children a safe, enriching place to grow and explore.” She said she is partnering with the We Can Be Association that supports children with special needs.
Jane Dail said the We Can Be Association provides funding for out-of-pocket medical expenses, equipment and different types of therapy like occupational therapy, speech therapy and physical therapy for families in Eastern NC.
The WCBA’s goal is to “provide entertainment and education to children of all abilities through interactive exhibits, as well as bring tourism to downtown,” according to documents in the meeting packet.
Several potential ideas were noted in the meeting packet, including a rotating exhibit, transportation exhibit, little builder exhibit, science center, grocery store and bakery, growing center, fishery exhibit, water exhibit, dress up center and a recycling exhibit.
The annual operating costs of the museum were estimated to be about $110,500.
November meeting
The Board of Aldermen considered a lease agreement on Nov. 13.
Alderman Dana Outlaw said he didn’t want to impede the process, but he thought they may want to consider postponing the decision until the new aldermen elects are seated (Dec. 9). He also said that in the past they asked for an “annual audit to make sure we understand the solvency and the financial stability.” He said he wasn’t trying to micromanage a particular entity; he just wanted to caution the board.
Assistant City Attorney Jaimee Bullock said the lease terms include an insurance requirement and $1 per year for rent.
We Can Be Association President Erin Henry said although the children’s museum is new to them, the 501(c)(3) nonprofit has been in place since 2020.
The association said they planned on opening the museum within a year and they need a lease agreement so they could start raising funds.
Alderman Barbara Best said there are nonprofits that have one-year leases and thought they needed to extend the same lease agreement terms across the board to all of the nonprofits.
Mayor Jeffrey Odham said he believed the funding for one of the nonprofits was year to year, if he wasn’t mistaken.
Alderman Bobby Aster said the Firemen’s Museum (on Broad Street) couldn’t raise funds with a one-year lease and they currently have a 20-year lease.
Alderman Trey Ferguson made a motion to adopt the resolution approving a lease agreement for the property at 408 Hancock St. to be used for a children’s museum that will open by Dec. 31st, 2027.
Alderman Outlaw said they can’t raise money without a firm commitment from the city. He suggested that Alderman Ferguson informally meet with aldermen elect Sharon Bryant of Ward 2 and Lainy White of Ward 4 to discuss the lease, then report back when the full board is seated.
After a discussion, the board voted on the motion to lease the property thru Oct. 15, 2030, with aldermen Trey Ferguson of Ward 1, Hazel Royal of Ward 2, Bobby Aster of Ward 3, Barbara Best of Ward 5 and Dana Outlaw of Ward 6 voting yes. Mayor Jeffrey Odham also voted yes. Alderman Johnnie Ray Kinsey of Ward 4 was absent.
NewBernNow.com reached out to aldermen elect Sharon Bryant of Ward 2 and Lainy White of Ward 4 for a comment.
Alderman Elect Lainy White said, “I think it was considerate of Alderman Outlaw to bring up the possibility of postponing the decision for December. I support the decision made by the current board.”
Sharon Bryant had not responded by press time.
A little history
The Hancock Street property was used as a firemen’s museum for several years.
In 2015, the aldermen voted on a motion to appraise the Hancock Street property with Dallas Blackiston, Victor Taylor, Patricia Schaible, Johnnie Ray Kinsey, Bernard White and Jeffrey Odham voting yes. Then Mayor Dana Outlaw voted no, according to the minutes.
In January 2017, the six aldermen voted to establish a general capital project fund with the intent to sell the property at a minimum bid of 85 percent of the appraised value and the mayor voted against it, according to the minutes.
When the newly elected Board of Aldermen took office in December 2017, they discussed leasing the property to a nonprofit to promote the arts. It was said that one of the board members was working with another organization to offer free children’s programs. They also planned on offering classes for adults, according to the minutes.
The minutes noted that the “initial offer proposed a base rent of $1,200 monthly for a three-year term with conditions that the city complete specific alterations to the building. A later discussion evolved around a 5-year lease at a rate of $500 a month with the lessee maintaining the interior of the building and the city maintaining the exterior and HVAC system.”
Mayor Outlaw suggested that an ad hoc group of aldermen meet with the then director of Parks and Recreation (Foster Hughes) to discuss it. He noted the fair market value at $2,400 a month but the contribution to the community could outweigh that.
In January 2018, the ad hoc committee — the aldermen Jameesha Harris, Bobby Aster and Sabrina Bengel — met with the nonprofits and the P & R director, according to meeting minutes. Foster Hughes recommended that Parks and Rec “manage the building, upfit it at a cost of approximately $25,000, and lease studio and gallery spaces to artists. Art classes would be offered and events coordinated in and around the building.” He said the artists would man the building and the city would “have liability associated with the building but could consider requiring each artist to carry insurance.” The expected rental income was $21,000-23,000 a year, which wasn’t inclusive of revenue from classes, etc. The leases were expected to be for one year, although a six-month lease could be considered.
Someone suggested a public component be included to provide for the nonprofit to work with another nonprofit to promote and educate the arts to school-age children, provide space and programming for the city’s summer youth program, and promote the building as a community arts center.
Then Alderman Jeffrey Odham asked if it would impact the Community Arts Center (New Bern Arts & Wellness Center) that’s adjacent to the former Days Inn which also leased booths to artists.
Parks and Recreation Director Hughes said he had not looked at the impact it would pose.
City Manager Mark Stephens indicated he would talk with the Foster Hughes and come back before the board with a proposal that would keep the building as property operated under Parks and Rec and the department would lease spaces to artists. He didn’t advise committing 13 spaces to the nonprofit as it wouldn’t be fair to the public. Sabrina Bengel asked that another nonprofit be considered as they also need space. Then Aldermen Bengel (Ward 1), Harris (Ward 2), Aster (Ward 3), Best (Ward 5) and Mayor Outlaw (lives in Ward 6) voted to proceed with a refined plan at the next meeting. Aldermen Kinsey (Ward 4) and Odham (Ward 6) didn’t raise their hands in agreement.
The board was advised that state statutes required a 30-day notice for any leases longer than one-year, according to minutes.
In February 2018, Hughes reported on the estimated operating costs and a motion was made to adopt a resolution placing 408 Hancock Street under the purview of Parks and Recreation as a multipurpose art center. Then Aldermen Kinsey and Harris voted against it, according to meeting minutes.
In July 2020, the city leased 408 Hancock St. to a nonprofit for $1 a year for one year so they could store home goods like diapers, appliances and other things so they could donate them to citizens. The following year, the nonprofit asked the city to renew the lease. Foster Hughes — then the interim city manager – told the board that other parties expressed interest in renting the space for meetings, according to meeting minutes.
Bengel said other nonprofits should be able to use the property for meetings, functions, classes, etc.
Aster and Outlaw “stated they felt the building should be sold if there was no real use for it,” according to the minutes.
The board didn’t take action on the resolution to approve the lease, according to the minutes.
In April 2023, the city polled their social media audience leading up to a decision on whether they wanted a Pepsi museum to be developed at 408 Hancock St., the corner of S. Front and Hancock Sts., or 925 Broad Street – the site of the former Days Inn. A few weeks later, the Board of Aldermen decided not to pursue a grant for the museum, as reported here.
Also in 2023, the board authorized lease agreements with Craven County for $1 a year for one year while they renovated the library, and again in 2024 while they renovated the senior center.
Watch the meeting here:
Related news
The next Board of Aldermen meeting will be held on Nov. 25. Agendas, packets and meeting minutes can be found here and videos can be found on City 3 TV Video on Demand, the city’s YouTube channel and Facebook page.
Editor’s note: Article updated to include Alderman Elect White’s comment.
By Wendy Card, editor. Send an email with questions or comments