City councillors received an earful of criticism over the proposed site for a permanent emergency shelter in downtown Regina.

Business owners in the area were adamant that the proposed location would negatively affect them.

"Placing individuals with serious addiction and mental health issues in an industrial zone without direct access to these services not only undermines the city's own plan, but also sets these individuals up for continued struggles," said Miranda Michell, the owner of Fella & Fetch.

Michell was among the 11 delegates who spoke at the meeting of the city's executive committee on Wednesday.

City administration has recommended the City of Regina purchase the current site of the Eagles Club — located at 1600 Halifax St. and just a block away from Regina Police Services headquarters — for $2.6 million. The city would then spend approximately $3 million to convert the property into a shelter.

The federal government has provided $3 million for the project, while another $3 million will come from the provincial government in the form of a loan that is forgivable after 10 years. That would mean no additional contributions from the City of Regina.

City manager Niki Anderson stressed that administration had attempted to find a property that met the concerns raised by a majority of councillors in June when they rejected a proposed site on Albert Street.

Anderson went through a nine-point list of the councillor's complaints.

"It is already zoned appropriately, which is a significant advantage that rarely happens. The location offers close access to core services, core city areas and public transit," Anderson said as part of the list.

Ward 3 Coun. Andrew Stevens reminded councillors and the public that the proposed shelter will serve as a "like-for-like" replacement of the 55-bed temporary emergency shelter operating at the Nest Health Centre. The city's lease at the facility is set to expire in summer 2025.

Regina Treaty/Status Indian Services, which currently operates the shelter at the Nest, is expected to also operate the new permanent shelter if it is approved by council. The facility will not address the growing issue of homelessness in the city, according to city staff.

Owners of businesses located around the proposed facility repeatedly told council that they understand the need for a shelter, but said they felt there was a lack of consultation and they were concerned about the potential negative effects on their business.

"I think we all can acknowledge that the space is needed, but how do we just implant it into somebody else's world, right, and not treat those people, those taxpayers fairly?" said Daniel Turgeon., owner of Town and Country Plumbing, Heating and Electricity.

Ward 4 Coun. Lori Bresciani, who recently announced her candidacy for mayor, led a failed attempt to have administration carry out more consultations.

City administration have said they will carry out more public information meetings if the purchase is approved by council. Staff said they had no more new information to add beyond what was made public in their report in front of council.

Mayor Sandra Masters was able to successfully pass an amendment directing city staff to meet with businesses within 250 metres of the shelter about developing a "neighbourhood maintenance compensation program." The proposed program would provide businesses with compensation for expenses incurred as a result of the shelter. That would including things like additional lighting, cleaning, graffiti removal, private security, security cameras, increases to insurance premiums, decline in property values and decline in revenue.

Anderson said pushback on a shelter location is expected.

"As I said with the last opportunity, I can think of no neighbourhood that would universally welcome a new shelter in their area, and I can think of no location where everyone would agree that that is the right location," said Anderson.

Anderson said city administration already has concerns about being able to have a new shelter up and running by the time the temporary shelter at The Nest closes in July.

A final decision is scheduled to be made at the city council meeting on Sept. 25. The city's option to purchase the property expires on Oct. 15.