Lake Elsinore council approves $198,000 contract to demolish former Ambassador Hotel

Exterior of former Ambassador Hotel. (Photo courtesy of the City of Lake Elsinore)

The Lake Elsinore City Council unanimously approved a public works agreement Aug. 11 with Precision Works Inc. for up to $198,000 to demolish the former Ambassador Hotel, but demolition remains on hold under a temporary court stay.

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The agreement covers demolition of the building at 164 S. Main St. The council also authorized the city manager to approve change orders of up to $19,800, or 10% of the contract amount.

The Riverside Superior Court issued an abatement order July 21 finding the Ambassador Hotel building to be a public nuisance with unsafe conditions and ordering the city to immediately demolish the building, according to the city. 

The city said the former hotel has 65 identified substandard, illegal and dangerous conditions and was red-tagged years ago, meaning it was determined to be unsafe to occupy until the hazards are corrected.

Interior of former Ambassador Hotel. (Photo courtesy of the City of Lake Elsinore)

The city said it has worked with the Dream Center for nearly five years to address the violations.

Before purchasing the property in 2021, the Dream Center entered into a compliance agreement acknowledging the violations, agreeing to deadlines to correct them and promising to maintain the building in accordance with all laws, according to the city. The Dream Center also agreed that the city could seek court relief if compliance did not occur.

City Attorney Barbara Leibold said during the Aug. 11 council meeting that no remediation had occurred during that period and that the property continued to deteriorate.

“After five years of working with the Dream Center, there’s been no remediation,” Leibold said. “The property has continued to decline. So, with no remediation and the building left to continue to decline, the city did seek court relief.”

The city began the bidding process for the demolition before the court issued its July 21 order, in preparation for the city’s request for a court order. The city posted a notice inviting bids June 22, held a mandatory site visit July 1 and received 10 bids by the July 16 deadline, according to the city staff report.

After the court issued its order, the city took the first steps toward demolition by engaging a contractor and securing permits for asbestos removal. Asbestos abatement began Aug. 6 and continued Aug. 7, Leibold said. She said the asbestos work was separate from the demolition contract approved Aug. 11.

On Aug. 7, the Court of Appeal issued a temporary stay halting the demolition pending further action by the court.

“The Dream Center appealed the Superior Court’s action, and the Court of Appeal…did stay the demolition,” Leibold said. “The city is not taking any additional action. We will comply with the Court of Appeal.”

Leibold said the asbestos abatement crew would return to the roof to cover and seal roof tiles to prevent them from blowing off and exposing asbestos.

Leibold said the city’s action involving the building is separate from the Dream Center’s work in the community and any future land-use or development proposal for the property.

The city has said that if the building is demolished, the Dream Center remains the owner and may pursue lawful development of the property.

During the Aug. 11 council meeting, Councilmember Steve Manos also spoke about the Dream Center’s presence in the community, saying the organization’s work is separate from the issues involving the hotel.

“The folks with the Dream Center are phenomenal human beings,” Manos said. “They have adopted our street. They clean the trash on Saturdays. They run a heck of a coffee shop. The issues with the Ambassador Hotel has nothing to do with people that are involved.”

According to the project’s public works construction agreement, demolition work is expected to take 45 working days once a notice to proceed is issued. According to the city staff report, the project includes utility disconnection, temporary stabilization, site safety measures, protection of nearby properties, dust and noise control, debris removal, traffic control and final site clearing and grading. 

For now, however, the city must wait for further direction from the Court of Appeal before proceeding with demolition.

“No work will be commenced pursuant to this demolition contract unless and until we get the green light or the order from the courts,” Leibold said.

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