Mediation will likely be used to settle a dispute between the city and the Palace Hotel. The mediation process would be used as an alternative to receivership, provided issues can be agreed upon by both sides.

The attorneys representing the City of Ukiah spoke with the attorneys representing the Palace Hotel recently, and said both sides have at least reached a verbal agreement concerning a court of action that includes the mediation process. The city does have stipulations, which it has not made public, but said the Palace Hotel owner has agreed to it. They did say the stipulation did not involve more work to be done on the North State Street building in the downtown of the city. The Palace Hotel was purchased at a tax auction in 1989 by the current owners.

The attorneys have spoken to a retired out of county attorney about the mediation and how it should be handled. Once the parties reach an agreement they mutually sign, that judge will be given the opportunity to approve the agreement. The city’s attorneys have drawn up paperwork, but have not received a response from the Palace Hotel attorneys.