The State Historic Preservation Office says it cannot intervene in the fate of the landmark Palace Hotel because Ukiah city officials’ actions preempted a role in the contentious local issue.
The decision is a setback for preservation advocates, who eagerly anticipated a state review, a process typically initiated for historic structures like the Palace when listed on the National Register of Historic Places.
In California, no structure designated and registered as historic as the Palace can be demolished, destroyed, or significantly altered without review except for restoration to preserve or enhance its historical values.
The Ukiah City Council, however, opted in early November to declare the Palace an “imminent threat” to the public. The council’s emergency declaration was based on the findings of a city inspection by building and fire department staff, but no structural engineering analysis was done. The council, in effect, blocked a review the state office would have ordinarily conducted.
As a result of the city’s action, “The State Historic Preservation Office has no regulatory jurisdiction over the Palace Hotel,” according to a statement issued by Julianne Polanco, head of the state agency.
City officials argued in November that the “historical significance of this building cannot impede the protection of public safety, which is of paramount importance.”
The City Council declared the Palace property a “public nuisance due to its hazardous condition,” contending immediate action was necessary.
Despite a formal 30-day compliance order, city officials have yet to take any action to enforce it upon the current owner, Jitu Ishwar, and his Twin Investments LLC. Nothing has been done to reinforce the building, nor have detailed plans been made for demolishing it to prepare the site for new development.
The only move to bolster the city’s claim of urgency is the erection of scaffolding around the portions of the Palace that front city streets.
This week, the state’s announcement disappointed local preservation advocates who questioned the city’s motives in making the emergency declaration that blocked state review.
Critics note that the city acted simultaneously as a group of proposed Palace buyers sought $6.6 million in special state funding to demolish the hotel and clean up the prime downtown site in anticipation of a private development. The application filed in mid-October by the Guidiville Rancheria, who would have majority control of a new partnership, and a group of local investors led by downtown restauranteur Matt Talbert, is under review after a state oversight agency nixed the notion of demolishing the Palace so ground contamination studies can be conducted.
“I think the city’s use of an emergency declaration for the Palace is questionable,” said Dennis Crean.
Crean noted that the city inspection was completed nearly six months ago (Sept. 29), but no action has been taken since the City Council acted at a special meeting in early November.
“So how is this an emergency? It seems more like a ploy to get around legal requirements for demolishing a building on the National Register of Historic Places,” said Crean.
Crean also cited past concerns issued by the State Historic Preservation Office:
“On their face, public safety exclusions appear reasonable – if a building is about to tumble down on pedestrians below, surely something must be done quickly – but in practice, they are sometimes used by a local government or owner to circumvent local review procedures … of an important historical resource.”
“Why doesn’t the city ask the state agency to assign a team to study the building and determine its safety as provided for under Public Resources Code 5028? State law gives any local government the right to enlist the state’s help, and that’s what the city should do,” said Crean.
This week, city officials dismissed questions about their motives or whether they were acting in concert with the proposed buyers to secure the demolition of an iconic landmark that has been allowed to deteriorate under two ownerships for three decades.
Current owner Ishwar has spurned offers from two potential buyers who sought to transform the Palace into a new boutique hotel/event/retail complex in favor of being made “whole” by the Guidiville group. Ishwar secured clear title to the Palace and its prime piece of downtown property in 2019 after paying $950,000 to a court-appointed receiver. Ishwar’s Twin Investments has taken no action since to stem the Palace’s decline.
Based on a building inspection, the City Council formally declared on Nov. 3 that the Palace was “no longer stable and poses an imminent risk of damage to persons and property due to its instability.” The move was widely publicized and illustrated by a PowerPoint presentation, including photos showing the Palace’s interior’s decrepit state, taken during a Sept. 29 inspection by the city’s chief building official, the fire chief, and two assistants.
The city has done nothing since to enforce its 30-day “emergency” order.
City officials acknowledge they have suspended any enforcement action pending state action on the $6.6 million grant application submitted by the Guidiville group.
However, Deputy City Manager Shannon Riley insists there is no link between the city declaration of a Palace emergency and the Guidiville plan.
“This is simply a code enforcement matter. We inspected the building, were alarmed at its condition, and took immediate action,” said Riley.
Riley said, “There was no strategy, manipulation of process, or ‘backroom dealings’ here.”
Tear it down.
Our culture is obsessed with permanence
Who’s is Dennis Crean? You quote this person but give no qualifications or explanation of why their opinion matters.
Just tear this piece of garbage down.
Current owners are fine and dandy with running their roach motel, they’re not going to put any effort into this eyesore.
Nobody ever will.
“took immediate action (made a declaration)…done nothing since”
“There was no strategy” – that pretty much says it all.
Used bricks are a commodity and would offset the payoffs someone is getting to make declaration for destruction. So what kind of eyesore will the courthouse become, it’s government owned just like that old stale post office with its door wedged ever so open. I say pay the homeless to tear down all three of these neighborhood projects and soon enough the city of Ukiah will find a tree to build a new artistic city hall in and so a fourth opportunity will arise for an open pit city center.
If the Post Office, the Court House and the Palace would happen to be restored and
made a centerpiece of the community then Ukiah might have a chance at being something other than a strip mall. The other thing that Ukiah might want to consider is paving streets other than the one that leads to Costco.
Thank you. You make a good point. These buildings have been the cornerstone of our city. As a fifth generation Ukiahan, I have many good memories at the Palace. My grandparents owned the Hub cigar store on Standley Street across from the courthouse. A lady named Cookie would make sandwiches for the Hub everyday and she lived on the second floor of the Palace. I used to get my haircut by Izzy there. It used to be a grande building. The city of Ukiah has allowed the owners to neglect the building. A historic landmark! Now they have managed to circumvent the State, and I guess the taxpayers get to pay for its destruction? Let the rich owner pay. He doesn’t want it restored, he’s proven that. Let’s just erase all our history, tear it all down. Next will be the courthouse. It’s all about money??
“Would happen to be restored” – This is wishful thinking to say the least. 30 years and on this building has yet to find a white knight investor to save it from its own deteriorating condition. The city and the community lose out the longer this building is allowed to exist in its current state. Costco paid for the street replacement as part of the deal to move into that location. Don’t worry; Ukiah didn’t spend any money on it. By the way most of the street work being done the last few years is done with grant / state money. Ukiah’s tax base isn’t big enough to repave new streets all over town.
So – unknown writer – you are telling me that Ukiah cannot even afford to pave the streets? Does that not even suggest to you that maybe, possibly, Ukiah might want to change the way it is doing things? Do you mean to suggest that “grant.state money” does not come from taxpayers?
Ukiah is doing things differently. The demolition of the hotel is something different. The city is losing out on sales and property tax dollars the longer that hotel stays decrepit and empty. Grant money comes from the state. Ukiah either contracts or hires grant writers to get grant money from the state. Most artery streets are paid for with grant money but residential streets are up to the city to cough up the money to repair or replace smaller streets. Streets are quite expensive to repair and even more expensive to replace if left too neglected over time. Take a look at potter or redwood valley residential roads and you’ll see why their roads are full of pot holes or outright dirt. There is no tax base to support road maintenance.
The city of Ukiah gets sales tax money from Measure Y. These tax dollars are meant to maintain the city streets. Grant and state tax $ has been allocated for the Ukiah street reconstruction downtown, bike lanes, and the Rail Trail, all in a statewide tax allocation effort, rightly or wrongly, to reduce dependence on auto use. County roads are differently funded and, generally, a mess.
Correct. The city also gets a cut of every gallon of gas sold in city limits too. That Costco in town is a cash cow for the small city of Ukiah. That’s what the down town could be if the city council allowed new development to happen.
I’ll forward this to Costco – I am sure they will be delighted to know they are a cash cow. And, OH, if the downtown could only look like Costco – you must be from LA if you think that!
Costco fulfills the demands of the town and downtown could do the same thing if the core areas were allowed to redevelop.
Well, the sprawling struggling strip mall City Of Ukiah should not be allowed to allow the destruction of an Historical landmark. The Palace should be restored, re-built, and renewed. Talbot should be recognized as the proprietor of a small place on a side street and given little attention.
Tom, worry about Boonville developments and let Ukiah residences vote their desire for future development in their town…
Well, I am not quite ready to leave this alone even though someone un-named wants me to butt out. Ukiah is after all the County Seat of our County and as such I think that even a person from Boonville might want to have a say. I am asking that Ukiah recognize and honor its heritage and utilize that heritage to make Ukiah a better place. Take a look at the history of the Oxford Hotel in Denver, or the Hotel Boulderado in Boulder to see what might happen.
Tom turn down the misplaced entitlement. You don’t want people from Covelo telling you how to run or develop Boonville. There is a reason the city is in its own charter separated from the county jurisdiction. Ukiah is getting more done than the county ever could so please keep your concerns within distant unincorporated areas.
Ahh – once again the unidentified writer telling me to butt out. Why would you think that anyone would listen to someone unwilling, or afraid? to put their name on their post? Anyway, how is that working out, having Ukiah on its own charter? Are you getting the roads paved? Making any progress with the historic hotel – other than trying to demolish it? Have you driven on Main Street lately – broken any springs? Rattled your teeth? Or, maybe, you are somebody in Eureka or Santa Rosa? Nobody knows, nobody cares…But…You are making it very hard to get rid of me…
The city council in Ukiah knows it’s budget unlike the BOS in the county. Ukiah officials have noted the building is a safety hazard for locals in town or nearby it. It can topple even by its own hand given the structural insecurity noted in the report. -Ukiah has added a water recycling system using grant money to improve the water usage in this district. And yes, roads get paved and maintenances far more often than anywhere in the unincorporated county. 🙂 Main Street looks way better than it did 5 years ago. Power lines are under ground, wider sidewalks, new trees, planters and light post, legal left turn lanes, etc… Bike trail with solar panel lighting and park like features running along side it. Ukiah accepting the demoing of the palace hotel will just make room for an evolving community’s needs.
Main street looks terrible south of the library, what are you talking about? Or did you confuse Main st. with State st.? Seems like a strange thing to do for someone telling an “outsider” to stick to their own city…
I remember the decrepit place as a boy. A place where drug attics stayed. Whose going to stay there if it’s restored?
Well Jim; If it is restored drug addicts will not stay there – they will not be able to afford it. I would think that folks riding or walking on the Redwood Trail will be staying there. They would be eating in Ukiah’s fine restaurants, spending money on their bikes, buying wine and more.
We are in complete agreement, Tom! The Palace should become a testament to its’ name! Loving Ukiah, we pray for an urban renewal!!
Go Ukiah, GO!!
Three of the most dreadfully tragic events in terms of historical buildings being deliberately destroyed in Ukiah in my memory were when the Cecil Hotel was torn down on the southeast corner of Perkins and state streets only to be replaced by the eyesore Rexall Drug store.
And even more horrific was when the Ukiah Fire Department burnt down for practice what was arguably the most beautiful Historic Victorian Home in town the old Redemeyer House down on South Dora.And also the main building where I attended High School. Ukiah has never put very much importance on it’s historic buildings. It seems that the focus was always about the more modern look and keeping the local contractors fat.
I’d never heard of the Cecil Hotel before, apparently it was waaaaaaaay before my time. It looks like it was a beautiful old piece of early Ukiah history. I’ve been struggling to remember what was in that spot before the current Child Services building. I still can’t recall how it looked and I don’t really remember any drug stores or anything like that, so it must have been when I was pretty young. Thank you so much for sharing!
I think it’s time we organize a get-together of old-timers who grew up here and record things like this. Audio recordings of stories, assist families with scanning old photos (permission willing of course), things like that. The historical society does a great job, but they’re a small crew and very busy it seems.
Naysayers
Here are some facts that might serve to inform any speculation about next steps pertaining to the Palace Hotel. Much of this has been reported on in other articles posted on this website.
Two separate local buyers with experience in historic architecture and funding have offered to buy the Palace Hotel and redevelop it together with proven professionals. Their plans include structurally stabilizing the building based on engineering studies and bringing it up to modern building standards. One of those buyers and her plans were reported on extensively in 2023, including on this website. The other potential buyer previously redeveloped the historic Tallman Hotel in Upper Lake. They both remain interested.
However, the current owner, Jitu Ishwar, previously rejected purchase offers from these buyers. Instead, he has agreed to sell to other buyers that include the Guidiville Rancheria as majority owner. Closing the deal depends on the outcome of an attempt by the tribe to obtain state grant money from the ECRG program, which is available only to municipalities, nonprofits, and tribes for “cleanup and beneficial reuse of contaminated brownfields in California’s historically vulnerable and disadvantaged communities.” But the state oversight agency for any cleanup (North Coast Regional Water Quality Control Board) only learned late in the process about the tribe’s intention to use most of the requested $6.6 million in taxpayer funds to demolish the entire hotel based on the contention that this would be necessary to investigate for contamination. In late February, the water board informed the tribe and the City of Ukiah that they would not approve the use of funding for demolition. Instead, the standard investigation process requires drilling test holes around the perimeter of the building at a fraction of the cost. And so the tribe (and presumably the Palace’s owner) is now waiting to learn what lesser amount they will be awarded and under what terms.
As for the City’s current position, they have stated publicly that they are also waiting for a final determination on the grant application and are therefore refraining from taking any of the enforcement actions against Mr. Ishwar described in their “Notice of Violation” served to him back on November 2. Due to the possibility of future legal action, the City Council and city staff continue to discuss more details in closed sessions not open to the public.
Well, we do not know who you are, so we do not know anything about the “facts” that you are presenting. You might have made them up, or maybe not. If you might tell us who you are we might be able to evaluate this: otherwise you are nothing.
Knowing a person’s name won’t validate facts. Check out all of Mike Geniella’s articles on this website to verify what I wrote. He fact-checks everything that gets published. Or view the recordings of City Council meetings. Or contact the relevant state agencies. BTW, I agree with your opinion that the Palace should be redeveloped and Ukiah’s history preserved.
Business gets done in many ways and the city expedited the process by making this building a safety hazard which it is given its current state. Something will happen to this place one way or another. Lots of Ukiah’s downtown is not earthquake compliant, like this hotel. This is just another grant like the one to improve downtown state street or the recycling water upgrade. It may get rejected or approved (even partially approved). It’s not up to us. Just like it isn’t up to Tom to tell another town’s residences to keep a historic hotel on this site because of misplaced nostalgia that does nothing for anyone under the age of 40.
Not a prediction of the future, but an eternal present that never left….
Keep the blight in towns and cities.
Government regulations over common sense.
It is not even a unique building.
Well, Franks, is restoring the Palace not a chance to make Ukiah a better place? I agree with you about gov’t regulations, but what do you mean about blight?
There are many blighted buildings in Ukiah that could be torn down. They just don’t have the historical UKIAH history and architectural beauty that this building has. From Black Bart to Robin Williams. There’s a lot of history here. I’m sure Frank Sandelin saw it as a way to boost our town financially and bring businesses customers. Yes, a lot of it has decayed or been torn apart by intruders, but it’s worth saving because of its location and historical significance. Two people, under the current ownership, were willing to invest in the purchase and restoration of this 60,000 square foot building for multi use purposes. Not everyone wants this building torn down. There are people who want it saved.
Well, I am one who would like to see it saved.
I am with you Tom. I was disappointed when Ishwar ultimately rejected Minal Shankar’s sincere bid to restore the historic hotel. I agree that a fine restoration could bring highly needed economic life and pride of history into Ukiah. It seems the city should have been on board. What is going on now is a manipulation of Native American grant opportunity and real estate speculation.
Amen, Pam. I am beginning to think the City of Ukiah may be a part of the manipulation going on between the “group of investors”, Guidiville and Mr. Ishwar. A move to have the over-burdened taxpayers of California finance their speculation. A move too often seen these days that says “screw everyone else, I will get rich at their expense.”
I have been infuriated about the treatment of the Palace landmark by the owners and the City of Ukiah for many years. The City has allowed these different owners to neglect this historic landmark and other buildings/properties. That has contributed to the blight in our town. I welcome anyone from Boonville who is interested in the restoration of the Palace Hotel. I’m a Ukiahan whose kin settled in Yorkville, Boonville and Ukiah in 1850.
For those interested to hear from a professional in the field of historic preservation who has analyzed the structural integrity of the Palace Hotel (and redeveloped buildings in even worse condition), visit the “opinion” section of the Ukiah Daily Journal’s website and check out the article “A Palace coup makes sense” by Carolyn Kiernat of Page & Turnbull. Sure, she has a vested interest since her company doesn’t work for free. But she also has a track record of success.
Thank you Concerned Citizen for the info published in the UDJ on March 22, 2024. The Opinion section article “A Palace Coup Makes Sense” really explains how the Palace can be restored to the City and its citizens benefit. I remember reading about Carolyn Kiernat and the other specialists that were hired to assess the restoration. I hope other readers will check out the article. It is possible to restore, it can be tweaked to benefit our community, and should be strenuously considered by the City of Ukiah!
The Palace should have been torn down 10 years ago. But some people would rather hold onto a piece of decrepit nostalgia than move forward. Ukiah used to be an attractive and friendly place to stay. Now it’s just a rest stop on the way to somewhere else.
Good place fir a nuclear power plant and bomb manufacturing site.