New Palace Owner Begins Shoring Up Landmark Ukiah Hotel

After years of neglect, a construction crew is working to shore up the landmark Palace Hotel beginning in the original portion erected in 1891.

Contractor Tom Carter, the Palace Hotel’s new owner, is collaborating with a team to strengthen the all-brick section at the corner of State and Smith streets. This section suffers the most structural damage.

“Our intent is to shore up the most unstable portion of the Palace, and then move throughout the complex so we can get the city-imposed condemnation order lifted and be able show the overall building to potential investors,” said Carter on Friday.

Richard Ruff, head of an established Mendocino County architectural firm, is assisting Carter in developing necessary plans to obtain city permits to stabilize downtown Ukiah’s decaying but best-known landmark.

“This is the beginning of a new chapter in the Palace’s history,” said Ruff on Friday.

Carter’s team includes his son Chae Carter, a licensed contractor, and nephew Mark Zimmerschied who operates Zimmerschied Construction in Lake County. Longtime Carter employee RH Ross is part of the effort.

Tom Carter, 73, acquired a regional reputation as a skilled craftsman for the transformation two decades ago of the historic Tallman Hotel and Blue Wing Saloon into a food and music showcase in Upper Lake.

Architect Ruff and he worked on that project together.

“We know each other’s work, and what it takes to get this kind of project off the ground,” said Ruff.

Carter’s work to date is confined to the oldest portion of the Palace, which has suffered the most damage from three decades of neglect, including under the last seven years of ownership of Ukiah motel owner Jitu Ishwar.

Ishwar is part of a group that owns motels in the Ukiah Valley, including the Marriott Fairfield Inn on Airport Boulevard. Ishwar has deep ties to the local business and financial communities, and he once served as president of the Greater Ukiah Chamber of Commerce. When Ishwar was enmeshed in disputes with the city of Ukiah during his Palace ownership, Ishwar was represented by Stephen Johnson of the law Mannon, King, Johnson & Wipf

Ishwar and Johnson two years ago scuttled a deal with new-to-town investor Minal Shankar, who has experience in tax credit financing and project development. Shankar, an investment adviser tagged in 2021 as one of the ten top women in financial lending circles in Canada, felt so strongly about the possibilities for a Palace revival that she had preliminary plans for a Palace revival project developed by Page & Turnbull, California’s premier architectural historic preservation firm.

However, Ishwar decided to reject her offer in favor of a sale to a local investment group led by restauranteur Matt Talbert and representatives of the Guidiville Rancheria. They promised to make him whole for his $1 million investment after he bought the Palace out of court receivership. Ishwar, according to court documents and city representatives, never invested in the work needed to prevent further decay of the Palace under his ownership.

The Talbert-Ishwar deal collapsed earlier this year after state agencies declined to award a $6 million grant the developers sought under the guise of contamination studies in hopes of demolishing the decrepit Palace at taxpayer expense.

Carter had earlier stepped in as a preservation advocate even though city officials and civic leaders were then embracing the demolition of the venerable landmark. After he secured title to the Palace and property in mid-October, Carter declared that the Palace would stand and be rejuvenated under his ownership.

Decades of neglect and punishing winter weather ripped gaps in a severely deteriorated Palace roof, letting storm water gush inside and rot interior walls and collapse old wooden floors and support beams in random areas throughout the Palace. A ground floor section where a lobby bar, fireplace, restaurant, and the legendary Black Bart Room were once located are in the most unstable area. Two floors of the original hotel rooms above are seriously damaged.

Contractor Carter is scrambling to make temporary repairs to the roof to minimize further water damage during typical wet winter months.

The primary focus for Carter, however, is construction of a four-story support tower in the original 1891 portion to stabilize the interior floors and provide support for the exterior brick walls. When crews recently removed mounds of debris and tore out a rotting ground floor, they discovered an underground storage area which included historic relics: an empty bottle of Pennsylvania rye whiskey bottled in San Francisco, an E & J Burke beer bottle, and a dainty teacup.

“The town’s history is everywhere inside the Palace,” said Tom Carter.

Whether the sprawling 60,000 square foot Palace can be rehabilitated into a new boutique hotel and retail complex is still the subject of public debate, but Carter, an acclaimed craftsman, and his supporters believe correcting years of neglect is a crucial step forward.

Carolyn Kiernat, a principal in the Page & Turnbull firm, said, “We are excited to see these steps being taken, and we are thrilled to be talking again about the Palace’s future.”

Kiernat said shoring the Palace’s aging brick walls and closing the building up as wet weather sets is critical.

“It means the building will get through another season and be ready for a full retrofit down the road,” said Kiernat.

Kiernat, whose firm prepared plans for a Palace retrofit two years ago, said she remains convinced the hotel can be rehabilitated and turned into a hotel/retail draw that can anchor Ukiah’s core commercial district.

“We are glad that the building has been passed onto someone who is focused on its future, and its potential,” said Kiernat.

Dennis Crean, who led a group opposing the planned demolition of the Palace by the Guidiville group, said he is encouraged by the work underway to stabilize the Palace, the most significant local landmark that is listed on the National Register of Historic Places.

“I was happy to hear that the city’s Building Department is committed to expediting Tom Carter’s application to shore up the Palace. It seems he is ready, willing, and able to stabilize the building and make it safe,” said Crean.

He added, “What a relief that this historic building is finally in the hands of an owner who cares. I know it will not be transformed overnight, but it is great that Mr. Carter is already making progress.

City representatives and Carter are still debating the extent of the permitting process that is needed to do stabilize the entire structure.

Carter maintains that three-quarters of the Palace complex is structurally sound enough for crews to work throughout the complex.

The Palace was constructed in four sections between the 1890s and the 1920s. The overall three-story hotel covers a half block between State and School streets and is attached to a row of retail shops and restaurants fronting Stanley Street on the north side of the current Mendocino County Courthouse.

City officials want in writing from a licensed structural engineer or architect that it is safe for crews to work throughout the building.

Deputy City Manager Shannon Riley said so far Carter has provided a plan to shore up the most damaged portion but not the remainder.

“Remember that it’s been over a year since the building was inspected and declared hazardous by our building official and three fire chiefs,” said Riley.

Riley said because the Palace is attached to additional historic buildings, located in a heavily trafficked area, and has no fire suppression system, “We need someone with expertise (engineer/architect) to confirm that it’s safe to work in the building.”

Carter said he expects to have that documentation within a week.

“We want to get the Palace shored up. Then we can start bringing in potential investors. They are out there, and they are interested,” said Carter.