The Palace Hotel: A recent look back

Coming up for air after my latest deep dive into the Palace Hotel, this time dating back to the late 1980s, it's clear that there's been nothing but trouble —yes, right here in River City— that's trouble with a capital T and that rhymes with P and that stands for Palace.

At a Board of Supes meeting in September,1989, the building is under consideration for razing; or gutting the entire interior and building a steel frame to support the exterior walls and bringing it up to safety standards at a cost of $10 million—$24 million today. Letters to the editor fly furiously back and forth on the pages of the UDJ amongst citizens and city and county officials, all freely weighing in on what should be done.

In January, 1990, the City Council votes unanimously to approve its demolition unless a buyer is found. On January 26th, on Friday at 10 a.m., Eladia Laines- Ganulin, Marty Ganulin and Tom Vuyovich, the solitary bidders, purchase the building for $115,000. A lawsuit between Peter Fazio, the fourth investor, and the three other buyers ensues immediately.

In 1994, a UDJ editorial states: It's time to tear the Palace down; she's an eyesore, an attractive nuisance, a black hole tugging at downtown economic vitality.

Former Palace Hotel owner Bob Sandelin says the building should come down.

The owners agree to begin work on its battered remains and put it up for sale for $699,000.

Laines believes the City should buy it; she is ready to move forward with plans for restoration and will not sell to anyone who wants to tear it down.

The City is willing to help in getting the Palace restored but does not want to buy it. City Manager Chuck Rough says he doesn't want to see us where we are now, in a year from now.

In 1998, the City wants to inspect the building but the owners are not providing access; Fire Chief Roe Sandelin says he will not let his firefighters in because of safety issues pertaining to its deterioration.

In August, 2000, through a firestorm of opposition, the City votes to seek a $35,000 state grant to do a study; absentee landlords remain remote and out of touch.

Mayor Jim Mastin noted, otherwise the Palace “could sit there until it does become a safety hazard. But that could take decades.”

The grant is approved and the results of the 2001 study determine it would take about $4.5 million to renovate and restore the building into a restaurant and hotel with retail shops and residential units.

In December, 2001, the City Council debates what to do next; Laines, who represents Questex Limited (the building's owners) is not in attendance.

In March, 2002, Laines shows up for a Council meeting and says it's always been her intention to rehabilitate and restore the building. Many are skeptical.

With money from an economic development program grant, the City's seismic analysis determines the Palace is not going to fall over but that with a little help from a temblor, it might.

October, 2004, the City Council votes unanimously to hire an appraiser for $6,000 to assess the property's value. More letters to the editor volley back and forth; many consider it to be yet more money being thrown into a black hole.

Spurred by Laines' continued neglect of the building, in 2007, Cynthia Cole forms the Friends of the Palace Hotel with co- chair Tom Liden and members Mari Rodin, Howie Hawks, Cindy Lindgren, Carole Hester and John McCowen.

To this day, Liden says, “If I were to cast blame, I would have to place it on Eladia Laines' many years of neglect. The Palace still had potential for cost effective restoration during her ownership.”

The building continues to deteriorate.

The City approves and extends allowances for Laines and, in June, 2014, council members vote 3-2 to not appoint a receiver. The Friends step up to put pressure on the City Council. In November, 2015, the City finally petitions the court and in January, 2017, the court appoints Mark Adams as receiver.

On January 11th, 2019, the Palace Hotel is put up for a foreclosure sale on the steps of the courthouse for an asking price of $982,000. No one bids on it. Jitu and Paru Ishwar, who had invested heavily in the property, now with the largest lien, become the new owners

he building and property are put up for sale and in April, 2022, Minal Shankar enters into a long-term escrow with Ishwar. Although she makes great efforts to have the deal come to fruition, the plans collapse in July, 2023.

Soon after, The Guidiville Rancheria of California and Matt Talbert, owner of Left Coast Restaurant, enter into negotiations with Ishwar to purchase the Palace Hotel.