AIKEN --- Two North Augusta landmarks will remain shuttered after an auction Monday drew only an opening bid by the bank.
Georgia Bank & Trust Co. owns Rosemary and Lookaway halls after a foreclosure auction by Aiken County, although bidding won't officially close on Lookaway Hall for another 30 days.
The homes are centerpieces in North Augusta's downtown and carry the history of the city's founder, James U. Jackson, and his brother Walter. Rosemary was built in 1902. Lookaway Hall was built in 1895 at the fork of Carolina and Georgia Avenues, which afforded views of the Savannah River.
In 1996, an Atlanta business group converted the homes into bed and breakfast inns. Since the conversion, owners have struggled to keep the homes open.
Larry and Rhonda Conner, of Roanoke, Va., purchased the properties in 2007 and tried to sell them in March 2008. The properties were closed last summer when the homes went into pre-foreclosure.
"Both are on the National Register of Historic Places, which offers an advantage to keeping them and maintaining them for commercial use," said Skip Grokovic, the director of North Augusta Economic and Community Development. "If a business was to buy them, they could take advantage of any tax credits. With this market, though, it's going to be tough for anybody to do anything with those structures. They are not the most efficient for a bed and breakfast or hotel."
At Monday's auction, Rosemary Hall had an outstanding mortgage of $839,181.31, and Lookaway Hall a first mortgage of $749,815.22, both of which were opening bids by attorneys representing the bank. Lookaway Hall has a second mortgage of $282,285.36.
Neighbor and fellow bed-and-breakfast owner Rachel Franklin said the properties need an owner who's willing to market them.
"A lot of people don't even know they are a bed and breakfast; they think it's just a place you tour," said Mrs. Franklin, the owner of Carolina Oaks Bed & Breakfast.
Mrs. Franklin worked closely with the Conners and previous owner Natalie Smock, who maintained the homes from 2001 to 2007.
"It could be an event center, like for weddings; that's where you're going to make your money," she said.
Jeanne McDaniel, the author of North Augusta: James U. Jackson's Dream and a member of the North Augusta Cultural Arts Council, said she would like to see Rosemary Hall become a residence again.
"I still hold out a glimmer of hope for that," Ms. McDaniel said.
Legend has it that the brothers cut a deck of cards to determine who would build on which site, according to Ms. McDaniel.
"I think most people consider them the heart of North Augusta," Ms. McDaniel said.
City Administrator Sam Bennett said the city had no plans to purchase the properties but would offer landscaping services if requested by the bank until the homes found a formal owner.
Reach Julia Sellers at (706) 823-3424 or julia.sellers@augustachronicle.com.
The Augusta Chronicle ©2010 Morris Communications, LLC. All Rights Reserved.
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I wonder if the bank has to pay taxes on their NEW purchase price? It would appear they should have to pay what any citizen would have had to pay for the property had they won the bid. The property probably would have sold at a lower rate if the bank wasn't placing such a high starting bid.
Why won't the city of North Augusta step up and purchase the homes, turn one into a museum, use the other for functions that would include the rooms. You can never have to much office space. Put it on the table. Take out a bond, loan or have a fund raiser. Before they become an empty trash filled lot like Palmetto Lodge. They can never be replaced.
It's a money pit located at a noisy location with limited parking.
If I win the Mega-Millions tonight I'm going to buy them. They are beautiful buildings.
dissman, I believe the bank owned the loan ... why would they let the properties go for pennies on the dollar? i'm with you hatfield - i'd buy them if i won the lottery - beautiful, beautiful buildings.
I'd buy them too. What a treasure.