Selma to work with St. James owner to settle tax issue that has stalled hotel's sale

Selma’s city attorney will work with the owner of the St. James Hotel to settle a tax issue that has stalled the hotel’s sale and eventual reopening, Selma Mayor Johnny Moss III said April 27.

The Selma City Council at their April 27 meeting authorized City Attorney Graham Mosely to negotiate a settlement with Lewis that would get a tax issue settled and allow St. James Hotel owner Jim Lewis to reopen the historic 55-room hotel on Water Avenue that has been shuttered since August 2025.

The city claims the hotel, which was managed by two firms when it operated from 2021 to 2025, owes some sales taxes and lodging taxes. Moss said April 27 he could not comment on the amount. Lewis, who purchased the building in 2019, told the Black Belt News Network that he researched the situation and has an estimate of what the hotel may owe.   

Lewis says getting the tax situation ironed out would allow for a deal to go through with an investor and the Marriott chain to take over the hotel as early as July. Lewis said the investor told him that they will not buy the property until the tax issue with the city is settled.

Lewis said if the investor walks away, it’s unlikely he will be able to find another investor soon. And if the property doesn’t start earning some money, the bank would likely foreclose on the property.

Besides the tax issue, the city and Lewis could discuss a revenue-sharing agreement that calls for the city to return 25% of the sales and lodging taxes to Lewis.

Lewis attended the April 27 meeting, but he was not asked to address the city council as he did on April 14.