While the debate as to whether or not the historic Palace Hotel in Ukiah is a hazard, the North Coast Regional Water Quality Control Board has ruled out any need for demolition in order to conduct water contamination studies. The declaration comes as the hotel owner is trying to sell the building and the land under it to a group of investors. The Water Quality Board says it never required demolition of any building no matter in what condition to determine if there is contamination at a site, and to what extent.