SOUTH LAKE TAHOE, Calif. – After nearly five years of notices, fines, and fees, El Dorado’s Superior Court has ruled that Sunray Hotel will be either rehabilitated or demolished, due to the risks to health and safety it poses to the city. The city petitioned for an order to abate in October 2024, which received a tentative ruling on Thursday last week and an official ruling on Friday after a hearing.

Sunray Hotel is owned by Fragranice Inc. and stands on 2659 Lake Tahoe Boulevard. It previously operated as a hotel with 58 residential units, but became a point of concern due to conditions deteriorating in 2019. Then, in 2021, the city received calls for service, and Sunray was hit with its first violations: dangerous conditions in the parking lot related to snow removal, fire hazards due to faulty electrical systems, a lack of potable water and hot water in units, and unpermitted construction on the stairs.

In March 2022, none of these issues had been addressed, and the city conducted an inspection of the property, revealing more unsafe conditions. Broken windows, deteriorating walls, abandoned wiring, and damaged stairwells and decks abounded throughout the property. Even more concerning was that there were residents living in these substandard conditions—12 separate units were occupied during this time.

After extensive notice and fining due to these substandard living conditions, the property was completely vacated by October 2022, leaving it abandoned without fixing the aforementioned issues. By the time the city filed its petition ordering an abatement, the property had racked up over $51,000 in citations and fees.

In July 2024, however, a response appeared. A respondent sent a letter to city staff detailing their need for more time, the desire to transfer the property, and their previous failures to transfer the property. After several revisions, the respondent presented a renovation plan by the end of August. The city agreed to hold off on filing for receivership if the respondent could adhere strictly to the deadlines set forth in their plan.

Despite meeting the first deadline, the respondents failed to meet further deadlines. When the city contacted them, they claimed the deadlines were only estimates, in direct opposition to the earlier agreement. In the petition, the city states, “[T]he failure to meet these self-imposed deadlines, coupled with the years of failure to act and to competently manage and address the noticed violations at the Property, the City no longer believes Respondent is capable of completing the Renovation Plan according to the schedule they proposed and the City accepted.” The city also identified that the property was a risk for both fire and collapse.

Respondents filed a demolition permit application, which was incomplete and was not finished by the time the hearing took place on Friday.

Like with another blighted building case in South Lake Tahoe, the city appointed Dean J. Pucci as the receiver for the property. While no official statement has been made on whether the building will be rehabilitated or demolished, with an appointed receiver, change will certainly come to the property.

Eli Ramos is a reporter for Tahoe Daily Tribune. They are part of the 2024–26 cohort of California Local News Fellows through UC Berkeley.