Possible St. James buyer says city broke contract
Published 9:12 pm Thursday, December 15, 2016
A company that tried to purchase the historic St. James Hotel has filed a federal lawsuit in U.S. District Court against the city of Selma for allegedly breaking a contract.
The lawsuit, which was first reported by The Associated Press Tuesday, charges the city and council members breached a contract with Janee Hotel Corporation by relisting the hotel after voting to sell it to Janee Hotel Corporation for $100,000 and a commitment of $4.5 million in renovations.
The lawsuit states Kenneth Moore, president of the development company, was asked by Councilwoman Susan Keith, who was over the committee in charge of selling the St. James, and Mayor George Evans, about the “availability” of the hotel for purchase.
According to the lawsuit, which only states the filers’ claims, Moore came to Selma on July 11, 2016, to look at the hotel, and he got permission from the board of directors of Janee Hotel Corporation for the company to make an offer.
Moore made an offer to the city on Aug. 4 to buy the hotel. Janee Hotel Corporation’s offer of $100,000 was much less than the city’s appraised value of the hotel, which was $900,000.
The council voted Aug. 18 to accept the offer from Moore and Janee Hotel Corporation, but the deal was not finalized by the city council after information of Moore’s criminal history, which included criminal charges and bankruptcy, were reported.
The lawsuit charges “Councilman Cecil Williamson released personal information regarding Moore’s past criminal history to the Selma Times Journal who then published it both online and in the local newspaper.”
According to the lawsuit, the city breached a contract when it decided not to go through with the deal with Moore and Janee hotel Corporation and relisted to hotel.
“The city contracted with the Plaintiff by accepting its offer for the development of the St. James Hotel, however, shortly after accepting the offer, the city breached its requirements under the contract and relisted the property,” the lawsuit states.
The lawsuit charges the city failed to fulfill its duties “when they refused to pass a required resolution to transfer the property.”
The lawsuit requests the court to award Janee Hotel Corporation $4,674,933.33 in damages.
When asked about the lawsuit Wednesday, Moore declined comment due to ongoing litigation.
“At this time we will not comment because of litigation,” Moore said.
Attempts to reach Selma City Attorney Jimmy Nunn for comment were unsuccessful.
The St. James remains for sell and is listed with an Atlanta real estate company.