Ukiah city leaders have once again cleared the way for demolition at the former Dragon’s Lair corner downtown. The Mendocino-Lake Community College District plans to remove the aging buildings so it can pursue funding for badly needed student housing. City staff say tearing down the structures is a key step to making the project eligible for state construction grants. While the buildings will come down, the council approved requirements to preserve the site’s history through signage, design elements, and a mural.