City tells receiver it won't subsidize or licence Emerald Lodge if it reopens

Hamilton officials have taken the "unusual step" of informing the receiver of Emerald Lodge that the city would not provide subsidies for people living thereor issue a new licence even if it were to reopen.

The residential care facility, which provides housing for people with disabilities and low incomes,was emptied on Oct. 23 amid what officials have described as an "increasingly untenable and unsafe" situation.

"The degradation of this home in the last month, before we decanted it, was something we've never seen," saidPaul Johnson, Hamilton's general manager of healthy and safe communities.

Johnson provided anupdate on the lodge during a meeting of theEmergency and Community Services Committee Thursday, includingefforts to make it "crystal clear" the cityisn't interested in a subsidy agreement at the facility for the foreseeable future.

"That is an unusual step but as you know these homes are up for sale and what we don't want is for there to be any confusion by those that are going to potentially purchase this facility or other type of facilities that there'sjust going to be an automatic business as usual approach here," he said.

The lodge also does not currently have a licence and the process to get a new onewould likely be lengthy, said Johnson as "we would want to do a huge amount of due diligence."

Emerald Lodgeis owned and was operated by a numbered company, with Stefanie Martinoas its director, according tothe city.

However, a receiver, Grant Thorton Ltd., has been appointed. The city says the receiver terminated the operator of the lodge at the end of October.

As of May, corporate records also namedStefanieMartinoasthe administrator of the Rosslyn Retirement Residence, which wasevacuated following a COVID-19 outbreakthat infected 64 residents and 22 staff members. Sixteen people died.

In the days after that outbreak, public health said it wasurgently inspecting eight homesconnected to the same owners, including Emerald Lodge.

Robert Brown, a lawyer representing the Rosslyn,previously told CBC that home was part of a sale for "multiple facilities."

On Thursday, Brown said he had emailed Johnson on Oct. 9 to advise him his clients were selling facilities to "multiple arm's length third parties," adding he had already completed the sale of one site.

"A court appointed receiver was in control of the Emerald facility at the time it was vacated by the city," wrote Brown."That facility is obviously not being sold by my clients."

Grant Thornton Ltd. did not immediately respond to a request for comment Thursday.

During the committee meeting Johnson said he was "completely surprised" to learn the homes were for sale and that one was in receivership.

Following the evacuation, Johnson said the city worked with 29 people who were living at the lodge and has helped find 25 of them more permanent homes.

The remaining four arein a temporary shelter and may take some time to house.

"These folks have specific housing needs that we need to ensure are met," he said.

Ward 3 councillor Nrinder Nann said Emerald Lodge was "well known" to her office, adding her staff receivedcomplaints from neighbours about the conditions there on a weekly basis.

Johnson said public health, bylaw andthe city are carrying out regular inspections of residential care homes.

Staff are also looking at ways to modernize its residential care facilities, he said, noting many are well-run while others follow an "antiquated model."