As the city of Selma continues to work to sell the St. James Hotel to businessman Mark Peterson, new financial numbers show what the city has put into the hotel since it took over day-to-day operations in March.

City Treasurer Ronita Wade gave council members an update on the hotel’s revenue and expenses during Tuesday night’s council meeting.

The city has spent $187,000 more on the hotel than it’s taken in since the spring, according to numbers Wade shared.

“The hotel is earning revenue. It’s just not been enough to cover all the expenditures,” Wade said.

The hotel generated $270,000 in revenue, but that was set off by hundreds of thousands of dollars in expenses.

The city has been spending about an average of $20,000 a month on the hotel.

However, there have been large, one-time expenses: $89,000 in invoices left by Strand Management — including a $20,000 power bill — and more than $30,000 to install air conditioning last summer.

Councilman Cecil Williamson, who has called for the hotel to be closed, repeated his concern that a day of reckoning is coming.”

Two months into the new budget year, sales tax is down $21,000 and lodging tax is $35,000 lower than this time last year.

“Since we took over in March, we have spent $187,000 more than we have received. That again is $187,000 that is not budgeted,” Williamson said. “It’s got to come from somewhere, and that’s disturbing that it continues to increase each month.”

An unexpected increase in sales tax is the only way the hotel expenses won’t impact the city’s general fund, Williamson said.

“Our budget had no surplus … an increase is the only way we can pay off this [without cuts],” Williamson said.

The council voted to allow Mark Peterson to manage the hotel for no cost until Feb. 29.

There was no other action taken on the hotel. Councilwoman Susan Keith, who has led the council’s St. James committee, was out of town and absent from Tuesday’s meeting.

Peterson is proposing buying the hotel for $1. He would then invest at least $1 million over the next three years. A final proposal has not been brought before the council, but some drafts called for the city to retain a 10 percent ownership in the St. James, while others gave Peterson 100 percent of the hotel from day one.

In lieu of an upfront payment, the city would be paid based on a percentage of earnings for a minimum of $1.2 million.

The payout to the city would be made in years eight, nine and 10 or longer if needed to reach $1.2 million.

Some proposals have also included clauses outlining how the city could take back ownership if a minimum of $1 million in mutually agreed upon upgrades aren’t made. However, some drafts have mandated the city would owe Peterson for what he had put into the hotel should it fail.

Peterson grew up in Selma and graduated from Selma High School in 1987.

After high school, Peterson attended Dartmouth College in New Hampshire, earning a bachelor’s degree and eventually an MBA from the Tuck School of Business.

He has worked for several companies, including General Mills and Accenture, where he did consultant work for companies like Hyatt, Best Buy, Coca-Cola and Wal-Mart. He later created his own company, PrideRock Holdings, a biometrics firm that specialized in fingerprint and data management technology.