Council discusses historic building’s future
By Molly Ann Howell
Managing Editor
It’s been a little over two years since the Lexington Hotel shuttered its doors due to a lack of funding. What once served as a shelter for the unhoused is now run down and uninhabitable.
During their Feb. 10 meeting, the Gallup City Council faced a critical choice: demolish or renovate the building?
City Human Resources Manager Marcus Largo told the council that the city’s insurer, New Mexico Self-Insurers’ Fund, has demanded a decision.
Renovating the hotel would cost the city about $2 million, while demolition ranges from $750,000 to $1.25 million.
“Unfortunately, the conversation with the insurance company reached a stalemate; they refuse to cover any remediation and will only consider an offer to cover the property’s demolition,” Largo said.
New Mexico Self-Insurance stated they would only cover $300,000 of the demolition cost. The city would only receive that reimbursement if they chose to demolish the building.
Before the councilors voted on the matter, City Manager Frank Chiapetti Jr. voiced his opinion.
He noted that Battered Families of Santa Fe is seeking capital outlay money from the current legislative session. They may use those funds to acquire, design, and construct a new youth shelter at the Lexington site.
Chiapetti also acknowledged the building’s poor condition.
“We’re probably going to have to demolish the complete inside,” he said. “Right now, you can’t even stand on the second floor. At my weight I would probably go through the floor.”
He said if the city decides to renovate the building, a contractor will recommend how to brace the walls and floors from the water damage the building sustained after a waterpipe broke in 2024.
Battered Families Services, Inc. Executive Director Emily Ellison spoke up at the meeting and said that her organization is excited to see what they can do with the Lexington Hotel.
Councilors asked Ellison how rent would be handled if Battered Families took over the building.
Ellison explained that other domestic violence shelters across the state have established various agreements with municipalities. Under these deals, some of the non-profit assumes liability and pay the insurance costs for the building. Other municipalities charge the non-profits a $1 monthly leasing fee.
Councilor Sarah Piano, Dist. 3, showed her support of Battered Family Services taking over the building.
“If you can get the money, far be it for us to stand in your way,” she said. “I just want to make sure if we’re using it as a youth shelter that it’s safe and you guys feel like you’ve got the mechanism to get it up and running where it’s safe.”
Ultimately, after the discussion, the council deferred action on the Lexington Hotel rather than deciding to demolish or renovate it.
