The Ukiah City Council threatened Wednesday night to wrest control of the historic Palace Hotel from its owner, saying that restoration of the decaying structure is insufficient.
But after three hours of debate, a slight majority voted to give Eladia Laines one more chance before seeking a court order that would put a receiver in charge of restoring or tearing down the once-grand hotel.
"I just don't think this is the time," Councilman Doug Crane said prior to the 3-2 vote in favor of another reprieve.
He agreed with other council members that progress has been much slower than they'd hoped for when they initially threatened Laines with forced abatement two years ago. But the latest holdup was caused when a state regulatory agency stepped in, ordering the work to stop because of asbestos concerns.
It is the latest chapter in a saga that dates back nearly a quarter-century.
Laines, a Marin County real estate agent, has been promising to restore the 122-year-old landmark since she and former partners purchased the hotel in a 1990 bankruptcy sale for $115,000.
The nearly 60,000-square-foot, three-story building takes up more than half of a city block and has been a scourge on downtown improvement efforts.
Laines periodically has made small repairs and promises of larger-scale renovations to the council.
Councilwoman Mary Ann Landis, who voted to move forward with the receivership, called the promises "stories."
"It's still a mess," she said.
Over the years, the city has spent more than $100,000 in staff time and studies for the hotel, hoping to jump-start restoration efforts.
Finally, the City Council two years ago ordered Laines to take steps toward rehabilitating the building or face having the city seize, and possibly demolish, the structure, which was declared a nuisance. It triggered the latest round of repairs, which have included removing lath-and-plaster walls.
"I have spent more than $500,000 of my personal money" on the hotel, Laines said.
She said workers also have removed and recycled 200 tons of material from the hotel.
The next step is to get state regulators to approve a plan to remove the asbestos from the building at an estimated cost of $92,000.
The council will re-evaluate progress on the building and reconsider initiating a receivership next month.
You can reach Staff Writer Glenda Anderson at 462-6473 or glenda.anderson@pressdemocrat.com.
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