City delays decision on St. James

Published 10:38 pm Wednesday, October 28, 2015

After running the historic St. James Hotel for the last seven months, the city of Selma is extending the deadline one last time to give the city council more time to hear proposals and broker a deal for the hotel.

The city, which owns the hotel, took over operations in March after Strand Management Company decided to end its contract with the city.

“I think we’re real close,” said councilwoman Susan Keith. “I really feel like by the next council meeting we’ll just have it knocked out. I really do.”

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The council intended to make a decision on the hotel in September, but that quickly turned into October. The decision is now expected to be made in early November.

Keith and other council members have been meeting with potential buyers over the last few weeks and have had several meetings this week.

“We had a very good meeting yesterday, and then we had another meeting today, and we are working on something,” Keith said Tuesday night during the council meeting.

There was no mention of the hotel during the meeting until closing remarks from council members were made. Councilman Cecil Williamson, who has said he would be in favor of closing, asked for an update.

Keith told Williamson that she expects to have something worked out by the next council meeting.

Williamson then asked city treasurer Ronita Wade if the hotel is breaking even.

According to Wade, the hotel is not making money, and money from the general fund is being used to pay for expenses.

“In order to pay their bills we’re having to set up a liability to the general fund,” Wade said during the council meeting. “I requested $50,000 to cover us until we close. That was denied, so I had to explore other options.”

Wade said the city is $20,000 in the hole due to the hotel, and another two weeks could add an additional $5,000 to that amount.

According to Williamson, the city has spent an estimated $500,000 on the St. James Hotel since January.

The council verbally agreed to close the hotel by the next meeting if a decision isn’t reached.

“That’s a landmark, a historic hotel. If we sit around and let the St. James close, we’ll be doing a disservice to the employees down there,” said councilman Sam Randolph.

Keith said closing the hotel would have a huge impact on Water Avenue.

“It would be horribly detrimental if we had to close the hotel,” Keith said. “If we have to do it, we have to do it. We are going to do whatever we have to do, but I just don’t see that happening.”