The Selma City Council has agreed to sell the St. James Hotel to businessman Mark Peterson on one notable stipulation.

The council voted Tuesday to sell Peterson the hotel if he can come up with $1.2 million. Peterson has until March 15 to let the council know if he’s going to buy the hotel or not.

The Selma native sounded confident that he would make the deal happen.

“I’m going to purchase the hotel,” Peterson said. “I will do everything in my power to have a firm answer [by March 15].”

In late January, the council asked Peterson if he would be interested in buying the hotel outright.

The council and Peterson have been negotiating a possible sale since he made an initial proposal in October. Those terms evolved over the weeks but called for Peterson to pay $1 for the hotel now and then $1.2 million after eight years.

Peterson called the idea a “game changer” but said he would favor an outright purchase if he could find the financial backing.

“I think it’s a cleaner approach,” Peterson said after the idea was proposed.

“I think it clears the deck, [but] the money that would go into the hotel on Day One, now I’ve got to put into purchase. I’ve got to go get more money.”

Councilwoman Angela Benjamin made the motion to sell the hotel, which was seconded by Susan Keith.

The council members present approved the sale unanimously. Corey Bowie, Bennie Ruth Crenshaw and B.L. Tucker were absent from Tuesday’s meeting.

“I wanted to sell this hotel for the last many, many years, and I’d sell it to anyone who has the money to get the city out of the hotel business,” Councilman Cecil Williamson said.

The city has lost more than $245,000 keeping the hotel open since last March.

Councilwoman Angela Benjamin objected to the idea that the costs were “losses.”

“You don’t lose $245,000 taking care of buildings that are already yours. You don’t lose it just paying obligations,” Benjamin said.

She added that a majority of the council voted to keep the hotel open and now a majority is voting to sell it to Peterson.

The council will also allowed Peterson to deduct $20,000 from the purchase price for some air conditioning repairs he hopes to make before the weekend’s Bridge Crossing Jubilee.

The council talked about what would happen to Peterson’s investment should the deal not go through.

“That does raise the question if you do not buy that hotel … are you going to be expecting the city to give you that $20,000 back?” Williamson said. “I would be hesitant to spend any more money down there.”

Peterson answered that he’s determined to buy the hotel and the city could keep the money should the deal fall apart.

“Merry Christmas!” Peterson told council members.

Williamson said he didn’t think the city “would stick” Peterson for the $20,000.