An Afterlife Institution
Paranormal Palace is where all the non-human, alien, and fantastical creatures reside. They have encountered, or lived among humans. It is their interaction with the guests of the other institutions, that allow them to exist within the Palace.
Ariel is a banshee that exists for the children who reside in the various institutions, and the surrounding forests as a caretaker for the various beasts who have been maddened but their own demise.