Since Mark Peterson took over managing it, the St. James Hotel has started to make some encouraging progress.

A revamped, cafeteria-style lunch has been a big hit. Peterson said on some days during the past month the hotel has made $1,200 from lunch alone. The St. James has also found success with specialty nights, like karaoke, men’s night, ladies night and a jazz concert.

We’re glad to see positive signs at the hotel, but it’s time for the city and Peterson to set a deadline for him to buy the hotel. Peterson has been managing the hotel since Dec. 1, and his willingness to take on that role and dive in head first has shown his commitment long-term to the hotel’s success.

At the end of January, several members of the city council asked Peterson if he would be interested in buying the hotel outright for $1.2 million. The proposal caught Peterson off guard and understandably, he asked for some time to raise the funds.

It’s assumed the hotel will be sold to Peterson at some point in the near future. With that said, it’s time for the two sides to at least set a deadline and start laying out the framework of a new deal.

We were hopeful when talks started that the hotel would be under private management — and not under the city’s control — by the time this year’s Jubilee got underway. At this point, it’s clear that won’t be the case.

We’ve written it before, but it’s worth repeating again. We’re confident that selling the hotel to Peterson is the best option for both sides. It would get the city out of the hotel business and would give Peterson more freedom on its future operations.

However, a deadline must be set for the best interest of both sides.