The St. Helena City Council has halted negotiations to sell the former City Hall property on Main Street, choosing instead to reconsider potential uses for the downtown site and a separate city-owned property on Adams Street, which includes the public library.

In a statement Thursday, city spokesperson Andrew Bradley said the council decided it would explore “a broader range of possible uses” for both parcels.

City officials had been in talks with a hotel developer interested in the 1.3-acre site at 1480 Main St. The Adams Street property has not been declared surplus, a step typically required before sale. Voters in 2020 also approved a 20-year ban on hotel development there.

Still, some residents, including gallery owner Oliver Caldwell, have urged the city to sell the Adams Street land to a resort developer, arguing it would generate more tax revenue than a downtown hotel.

St. Helena officials have explored selling property to help close a persistent budget deficit, with hotel projects viewed as potential long-term revenue sources through transient-occupancy tax collections.

During the same closed-session meeting, the council also concluded its annual performance evaluation for City Manager Anil Comelo, who has served in the role since June 2022. The council directed City Attorney Ethan Walsh to prepare a report proposing an amendment to Comelo’s contract to adjust his compensation structure, Bradley said.

The statement did not specify what changes are being considered. Numerous public comments — 62 in total — submitted before the meeting urged the council to fire Comelo, who currently earns a base salary of $307,978. His contract provides for 12 months of severance pay if he is terminated without cause.

Bradley said he couldn’t give further details.

Public commenters largely urged the City Council to remove Comelo, citing what they described as combative interactions with residents, a lack of transparency, and irresponsible fiscal leadership. A form letter submitted by most speakers said those issues have “eroded public confidence and hindered progress on key initiatives.”

“These concerns are not isolated incidents but reflect a broader pattern of ineffective leadership that has negatively affected the City’s ability to move forward,” the letters state. “St. Helena deserves leadership that demonstrates competence, integrity, and alignment with the needs and values of its residents.”

Resident John Sales told the City Council on Tuesday that he thought Comelo has a difficult job and said he was “appalled” by the form letters.

“Anil has a job I would not want, and I’ve managed a lot of my people in my lifetime,” Sales said. “This has got to be the most difficult area that I’ve ever seen. We don’t seem to be able to come to agreement on anything here, even good projects get blown out of the water for one reason or another.”