London city council approved some key recommendations in their response to encampments and homelessness on Tuesday, including a motion that could limit the function of Ark Aid Mission's day and overnight resting spaces.

The plan, hashed out in detail at a committee meeting last week but debated again at full council on Tuesday, generated four hours of discussion.

Among the approved amendments: A motion that overnight and daytime resting spaces for people experiencing homelessness not be located on the main street of any of the city's five business improvement areas.

This would include the section of Dundas Street East where Ark Aid Mission operates a 30 resting space beds at 696 Dundas St. W., near the corner of Lyle Street in Old East Village.

Aik Aid executive director Sarah Campbell said the motion won't stop the Ark from serving drop-in clients but will prevent money from the city and other governments going toward the cost of operating those resting spaces.

"I see this as shutting down the government-funded component of that work," said Campbell. "Removing that funding takes away our ability to deliver that 24/7 drop-in space in a continuous way."

Campbell said the Ark won't stop providing the service, but instead will either have to relocate it or continue to operating in the same location but without government funding. The Ark uses donations and other funding sources to do its work.

"We will continue to do what we've been doing for 40 years," said Campbell. "We will continue to offer a place of belonging to the level that we can."

Some councillors, including Coun. Susan Stevenson, have long expressed concern that too many of the city's services for unhoused people are located in London's Old East Village, creating hardships for residents and businesses there.

"We've got a desperate, dying community right now," said Stevenson. "We're at risk of losing Aeolian Hall and the Palace theatre, it's very serious right now. We need to protect this beautiful and valued area."

The head of the local BIA has also expressed concerns about the effect Ark Aid is having on the area.

The city is seeking federal and provincial money to fund Ark Aid, which requires about $4.3 million a year to operate the Dundas Street location and an overnight shelter. Without the funding the Ark, which also operates a 60-bed shelter beside Bishop Cronyn Memorial Church on William Street, would have to close its doors by year's end.

To keep the Ark operating through winter, the city is counting on London getting a share of $250 million announced in the federal budget back in the spring. The money is intended to help local governments deal with encampments. So far that money has not flowed as Ottawa and the provinces work out cost-sharing for the program.

Coun. David Ferreira said he understands not wanting to have services for unhoused people concentrated in one space, but he also didn't want to limit the city's response in a way that could leave people out in the cold come winter.

"We need to ensure that we have that space before we consider a motion like this to ensure we don't have people on the street," he said. "We have to make sure we have available space before we make this decision."

Councillors also had concerns with motions passed at committee on how the city's service depots would operate.

The committee voted to keep 100-metre setbacks for the location of service depots, which typically are set up near homeless encampments to hand out basic supplies such as water and food and provide portable toilets.

Ferreira, who represents Ward 13 in the downtown core, said there's a lot of confusion from residents about how those setbacks will be enforced. Staff have said the 100-metre setback would create competition for spaces where camps can be set up.

Ferreira said an encampment in Evergreen Park is a particular concern with residents in his ward. Council is expected to make a decision later this month about where service depot locations will be located. For now, city staff said they're setting up as mobile units, going to places where people are living in encampments. Staff told council they are doing their best to be flexible and follow the guidance of council while also meeting a growing need for people who sleep outside.

Ferreira suggested a motion for more study of the setbacks by staff but it wasn't approved by council, with some councillors saying the changes came too late and after an exhaustive debate at committee.