Judge: Dixon’s Magnuson Hotel must close until life-safety violations are repaired

DIXON — A Lee County Circuit Court judge ruled Wednesday that a rural Dixon hotel must close while its owner works to remedy life-safety code violations that the local fire chief says have been putting people danger for years.

Judge Douglas Lee on Wednesday granted a preliminary injunction that closes the Magnuson Hotel at 443 state Route 2, Dixon, to guests, most of them extended stay, and forbids hotel owner Bahaveshbhai Kalani from living there.

As for people now staying at the hotel, Dixon Rural Fire Chief Dustin Dahlstrom said about six vehicles have been consistently parked at the hotel lately, signifying a decline in guest numbers, and signs have been posted at the hotel over the past two weeks to let those staying there know that it would be closing soon.

The hotel’s condition has been a major focus of the Dixon Rural Fire Department since 2021, Dahlstrom said. Dahlstrom became Dixon Rural’s chief in January, picking up on the Magnuson where former Chief Sid Aurand left off. The most recent discussions about the hotel’s condition have heated up over the past few months, with an agreement reached earlier this year that any violations were to be corrected. Subsequent walk-throughs, one of which included video recording of the hotel, led Dahlstrom to order the closure due to lack of repairs and Kalani’s subsequent refusal to close the hotel to guests.

The injunction granted Wednesday afternoon came after a two-hour hearing that morning. Lee County State’s Attorney Stephanie Sasscer argued the case on behalf of the Dixon Rural Fire Department. Under questioning by Sasscer, Dahlstrom reiterated that the hotel needs to be closed because of serious violations that pose an imminent risk to the life, safety and health of residents who live there, people who visit and firefighters who could be called to a fire there.

“Everywhere we go in this hotel there are new issues,” Dahlstrom said, adding there are problems from one end of the building to the other. He described holes in the walls that would allow fire to spread and walls and ceilings that have partially collapsed.

“It’s falling apart from the inside out,” he said.

But Kalani said the building was in worse condition when he bought it in 2017 and he has spent $900,000 on improving the property in the past seven years, taking the number of rental rooms from 22 to 52, and fixing violations. He also said different inspectors have given him conflicting information, and early problems that were not cited as violations years ago are now being listed as violations. He said he now “is broke” and can’t afford to do more work. He said he has no funds, is behind on his bills and lost business over the past three months.

“It’s falling apart from the inside out.”

—  Dixon Rural Fire Chief Dustin Dahlstrom

Kalani’s attorney, Thomas A. Whitecombe, questioned whether the violations rose to the level of putting people in imminent danger, saying that Dahlstrom himself had not inspected the property and argued that a State Fire Marshal’s Office report should not be used as evidence Wednesday because no one was in court to testify on behalf of that office.

Lee County Sheriff Clay Whelan also testified on behalf of the county. Sheriff of Lee County since December 2022 and a Dixon Police Department lieutenant for almost three decades prior, Whelan testified as to his knowledge about ongoing violations at the hotel.

Whitcombe argued that some of the violations had been detected as far back as when Kalani purchased the hotel and many did not rise to the level of posing an imminent danger. He also said Kalani has lost $80,000 in business in the past few months and a closure would pose a financial hardship for Kalani, who also manages the hotel.

In making his ruling, Lee said he had to decide whether the financial hardship that would no doubt be experienced by Kalani should outweigh the health, life and safety risks posed to guests. In the end, Lee said the safety risks carried more weight and the hotel will be closed until the court says it can reopen.

As part of the injunction, Kalani is not allowed to live there, but is allowed to have workers on site making repairs from 8 a.m. to 4 p.m. He also can bring in other people to see the building for business purposes, but only during working hours. Those conditions were allowed after Lee and Sasscer deferred to Dahlstrom.

“After hours, I expect no one to be there,” Dahlstrom said.

A hearing is set for 3 p.m. Nov. 20 to determine whether Kalani has made the necessary fixes or if the hotel will remain closed.