Editor’s note: The following is a letter to the editor. The opinions expressed in this letter are those of the writer, and do not necessarily reflect those of The Mendocino Voice. If you would like to submit a letter to the editor feel free to write to info@mendovoice.com.
Dear Editor:
On October 7, Tom Carter came to the Ukiah City Council meeting stating he would be getting a letter of approval from Ruff and Associates regarding the building formerly known as the Palace Hotel. He would have the letter to the city in 10-14 days, and it would state that the unreinforced brick masonry perimeter walls, built in 1891 and 1914, were safe.
He also acknowledged, as he has done since purchasing Twin Investments, LLC (whose only asset is the Palace Hotel) on October 15, 2024, that he has no investors.
This letter references information from my book, “The History of Ukiah’s Palace Hotel,” of potential costs for bringing the building up to safety standards and the costs for renovation to develop the building as a functioning enterprise.
In the year 2000, during the time Eladia Laines owned the building (1990-2017), the City of Ukiah received a Community Development Block Grant for $35,000 for technical assistance to prepare the Palace Hotel Reuse Study.
In 2001, Applied Development Economics and Mogavero Notestine Associates presented the results. Costs for renovation were estimated at $4,502,375 (about $8.5 million today) including $2 million for a restaurant; $575,000 for a 25-room boutique hotel; $880,000 for 34 residential apartments or office suites; $250,000 for ground floor retail shops or offices; $850,000 for engineering and architectural fees and permits; and an additional $1.5 million for a seismic retrofit. Seismic risk evaluations noted the unreinforced masonry posed serious safety risks and the report assessed how to safely tie new design alternatives into a stable, retrofitted shell. The report was accepted by city staff.
The $20,000 Seismic Analysis Study completed by Point 2 Structural Engineers and Applied Development Economics in 2002 recommended three options: an upgrade for all structures for life and safety conditions for $1.5 million; upgrade the 1891 and 1914 structures and demolish the 1929 building for $1.2 million; or upgrade the 1891 building and demolish the other two buildings for $1 million. The report recommended the first option and, with additional costs for earthquake retrofitting, the total estimate came to $3 million (about $5.6 million today). The council took no immediate action on the report.
In 2004 the City hired Dana Burwell for $6,000 to do an appraisal of the building. He said the Palace was a black hole for profit. He said, “No matter what you do, you will not make a profit on the hotel.” Because the property had negative returns, the only value was on the 20,000 square foot site valued at $310,000 (about $550,000 today).
Karen Rifkin
Ukiah