Owner of Ukiah’s Palace Hotel makes last-minute bid to retain control of building

Ukiah officials are considering information submitted at the last minute by the owner of the landmark Palace Hotel in her latest bid to prevent the city from taking over rehabilitation of the dilapidated hotel and placing it with a court-appointed receiver.

Marin County real estate broker Eladia Laines had until 5 p.m. Tuesday to submit proof she had completed a series of construction tasks laid out by the Ukiah City Council earlier this year. The work included asbestos removal and roof repairs on the 123-year-old building.

A letter from Laines and some documents to make her case arrived at the city at 4:59 p.m, city officials said. Other documents arrived Wednesday, they said.

Laines could not be reached Wednesday for comment.

City staff members are studying the documents to determine whether or not they should initiate legal proceedings to ask a judge to appoint a receiver to oversee the work. The determination could take up to two weeks, city officials said.

Laines has been working on the hotel under the threat of receivership for more than three years. But the saga of the Palace Hotel under her ownership dates back much further.

Laines has been promising to restore the landmark hotel at the center of Ukiah’s historic district since she and former partners purchased it in a 1990 bankruptcy sale for $115,000.

But progress has been sporadic and the overall condition of the 60,0000-square-foot building has continued to fall into disrepair.

Rehab worked picked up considerably after the City Council voted three years ago to proceed with receivership if Laines failed to make progress on a series of tasks. Under a receiver, Laines still would own the hotel. Loans and other funding spent on its repairs would be recouped from its increased value in any sale.

Since the council adopted the receiver threat, the inner walls and tons of debris and other materials from inside the building have been removed.

Laines has said she’s spent more than $1 million on the building. It’s not clear if that includes money she owes to a number of contractors, some of whom have placed liens on the property.

You can reach Staff Writer Glenda Anderson at 462-6473 or glenda.anderson@pressdemocrat.com. On Twitter @MendoReporter.