left shadow right shadow

City Departments

City of Ukiah Palace Hotel State Street First Floor Early 1900s

Palace Hotel

Frequently Asked Questions

Historic Photos of the Palace Hotel and Other State Street Buildings

Latest News

Receiver’s Reports

Update, November 30, 2017

Renovation efforts at the Palace Hotel continue to move forward under the authority of Receiver Mark Adams. In the meantime, the parties have entered a settlement agreement, confirmed by Court order, awarding the City $75,000 in attorneys’ fees in the form of a lien against the receivership property, including the Palace Hotel. The official press release is here:
November 30, 2017 Press Release

Update, April 4, 2017

The Receiver in the Palace Hotel case has been granted approval to move forward with his proposed plan to abate the safety and nuisance conditions at this historic building. Mark Adams, Receiver, presented a plan to Judge Leslie C. Nichols on March 1st, which included an outline of the necessary rehabilitation work and a proposal for the reuse of the building. The official press release is here:
April 4, 2017 Press Release

Update, January 9, 2017

Out-of-county Judge Leslie C. Nichols approved the City of Ukiah’s request to appoint Mark Adams as the Receiver of the Palace Hotel, following over two decades of efforts to improve the dilapidated building. The official press release is here:
January 9, 2017 Press Release

Update, December 29, 2016

The hearing on the City’s petition to appoint a receiver to oversee the rehabilitation of the historic hotel has been rescheduled to January 9, 2017. Following that, a trial has been set for three days, starting on June 5, 2017. The official press release is here:
December 29, 2016 Press Release

Update, October 25, 2016

Settlement discussions between the City of Ukiah and the owner of the Palace Hotel have come to an end without the parties reaching agreement. Therefore, a hearing on the City’s petition to appoint a receiver to oversee the rehabilitation of the historic hotel has been set for January 3, 2017. Following that, a trial has been set for three days, starting on June 5, 2017. Additional details are provided in the
October 25, 2016 Press Release

Update, November 2, 2015

The City of Ukiah filed a petition for receivership for the Palace Hotel. A hearing was held in Mendocino County Superior Court by an out-of-county judge, Leslie C. Nichols, in which he identified issues he believed would have to be decided upon in order to act on the receivership petition. Additional details are provided in the
November 2, 2015 Press Release.

Update, July 1, 2015

The City of Ukiah will soon be filing a petition for receivership for the Palace Hotel, as the owner of the building did not complete the required compliance schedule items by the April 21, 2015 deadline. If granted by the Mendocino County Superior Court, the receiver will have the power, subject to court supervision, to take control of the hotel and hire engineers and contractors to design and perform repair work. Additional details are provided in the
July 1, 2015 Press Release.

 

City Council Meeting, January 21, 2015

Agenda Item 11a

Consideration and Possible Adoption of a Resolution Ordering Repair of Dilapidated Palace Hotel Structure, Retention of Cota Cole, LLP, and Setting Forth the Conditions for the Initiation of Proceedings Under Health and Safety Code Section 17980.7 to Establish a Receivership for the Palace Hotel Property.

Resolution

The City Council approved a resolution that requires the Public Works Director to initiate receivership proceedings for the Palace Hotel if the owner fails without good cause to comply with a specific set of requirements contained in a Compliance Schedule approved by the Council. The initial requirements must be completed by April 21, 2015.

Past City Council Meetings

On April 16th, 2014, the City Council voted 3-2 to not appoint a receiver for the Palace Hotel. The same issue was revisited at the June 4th, 2014 City Council meeting. Again the City Council voted 3-2 to not appoint a receiver. For more information and to view the discussion during the April 16th Council meeting, click here. The June 4th Council meeting can be seen here.

 

Restoration Efforts: 2011 Forward

The City of Ukiah respects private property rights. That being said, the Palace Hotel is obviously becoming increasingly dilapidated and unsafe. Over the last 25 years City staff have made numerous attempts to work with the owner, local business owners, and even a community group called “Friends of the Palace Hotel” to address the issues with the Palace Hotel. In 2011, the City Building Official and Fire Marshall inspected the building and determined that the property constitutes a public nuisance: it is unsafe and unsanitary.

After the 2011 inspection, Ms. Laines expressed a willingness to make improvements to the building. She hired a contractor and began taking steps toward improving the building conditions. The City Council voted to give Ms. Laines another opportunity to rehabilitate the hotel instead of appointing a receiver to take control of the property and undertake its rehabilitation.

An ad hoc committee of two Council members was assigned to monitor the progress and Ms. Laines was required to give monthly updates on her progress at the Council meetings. Between 2011 and 2013, Ms. Laines completed one of the three phases in removing debris from the building’s interior, failed to prevent water intrusion in the winter, and violated the terms of her demolition permits on several occasions.