PORTSMOUTH – Mayor James Holley says the city needs a “black” hotel.

He made that comment as he tried to persuade council members to issue bonds for a hotel and conference center with black investors.

“It's always had white hotels here. I think it's time for us to have a black one. I'll be supporting it and see, I told you I could get more discussion,” he stated Tuesday night.

Vice-Mayor Bill Moody fired back.

Video: Mayor Holley calls for 'black' hotel

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“This issue might be black and white, but there certainly are no black and white hotels in this day and age. I have to correct you on that, I'm sorry.”

Holley's former rival, Martha Ann Creecy, says she and a group of community leaders are looking into a recall petition.

She lost to the mayor by 200 votes in the last election.

She says her phone’s been ringing around the clock from people she says want Holley out of office.

“I really couldn't get to work yesterday because of the phone calls and today and they're all saying the same thing -- that he needs to step down. He needs to be recalled,” she says.

Mayor Holley declined to talk about the incident Thursday.

Holley was recalled in 1987 after being linked to hate mail sent to community leaders.

Any recall effort has to wait until May 2009, a year after the last election.