Selma terminates revenue sharing deal with St. James Hotel

The Selma City Council terminated its revenue sharing agreement with the closed St. James Hotel.

It’s unclear what effect the May 26 vote will have on the reopening of the hotel, which has been shuttered since last August. Jim Lewis, who company opened the historical hotel on Water Avenue in 2021, is unavailable until next week.

The cancellation of the revenue agreement is the latest act in an ongoing drama for the St. James, one of the oldest hotels in the country.

Like any other business, the hotel was supposed to pay sales and other taxes to the city. Under the revenue sharing agreement, the hotel was to get back 25% of what it paid in taxes.

The resolution approved by the city council May 26 acknowledges that the city and the hotel operators violated that agreement. The resolution states the city has no record that the hotel operators paid their taxes, and the city apparently owes the hotel operators $95,000.

The resolution states the city will credit the $95,000 against the taxes the hotel owes, but the amount of taxes the hotel owes is not stated in the resolution. Neither the mayor’s office nor Lewis has said how much the city believes the hotel owes in back taxes.

Lewis said in April that he hoped to reopen the St. James in July under a new agreement with the Marriott hotel chain. But he said he had to settle the tax issue with the city of Selma before a new investor would join the deal.  

Because the property isn’t earning any income, the loan on the property will default, and the lender will most likely foreclose on the property, Lewis said in April.  

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Lewis’ company bought the property for $400,000 in 2019 and invested $5 million to renovate it into a 55-room hotel. It opened with a ribbon cutting ceremony in early 2021 but has closed twice since then.  The historic building on Water Avenue has been shuttered since August 2025.

The hotel is owned by St. James Hotel, LLC, which is affiliated with Lewis’ company, Rhaglan Hospitality, LLC.

The Selma City Council also heard from two bidders for the city’s garbage service on May 26.

A representative for Martin Environmental Services, the current provider, told the city council that the city needs to create a stronger partnership with its garbage contractor. He said a contractor needs to provide both commercial and residential services to maximize income, and the contract needs to be at least five years so the company can buy new equipment and get their money back from their investment.

Martin has provided garbage service to Selma without a contract since 2022. The Dothan-based company picked up the business from Liberty Disposal Inc., commonly referred to as LDI, when that company left the market. Martin has responded to the city’s request for proposal for a garbage provider in hopes of continuing to serve Selma under a contract.

The council also heard a presentation from Preferred Waste Service, commonly referred to as PWS.

The number of residents who won’t pay their garbage bill has been a chronic problem in Selma. The Martin representative said waste disposal companies are also dealing with rising costs of fuel, labor and dumping fees.