The city of Selma is in talks with Selma native and Atlanta businessman Mark Peterson to buy the St. James Hotel.

According to City Councilwoman Susan Keith, the city is waiting on Peterson to submit a letter of intent. According to Keith, Peterson is working with Wallace Community College Selma and Trenholm State Technical College to help staff the hotel and restaurant with students from their programs.

Not further information was released about the deal and ongoing negotiations, including a possible sale price.

Attempts to reach Peterson for comment have been unsuccessful. He made a presentation a few weeks ago about what he would like to do with the St. James.

Keith did add that if the deal comes to fruition there would be a transitional period through February during which they city would continue operating the hotel.

The city is having to put approximately $20,000 a month into the hotel to keep the doors open.

“It is earning revenue. Unfortunately, it’s not earning enough to cover all the expenses,” City Treasurer Ronita Wade told the council earlier this month during a meeting.

The continuation of the city operating the hotel concerned City Councilman Cecil Williamson.

“That is money we don’t have. It’s not budgeted,” Williamson said, adding that the revenue would have to be taken from other city agencies and program unless there’s an unplanned increase in tax revenue.

Wade the overages so far have been paid out of the city’s reserve revenue.

Keith said there was another group that had interest in making a presentation to the council.