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 there or 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," said Paul Johnson, Hamilton's general manager of healthy and safe communities.

Johnson provided an update on the lodge during a meeting of the Emergency and Community Services Committee Thursday, including efforts to make it "crystal clear" the city isn'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's just 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 one would likely be lengthy, said Johnson as "we would want to do a huge amount of due diligence."

Emerald Lodge is owned and was operated by a numbered company, with Stefanie Martino as its director, according to the 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 named Stefanie Martino as the administrator of the Rosslyn Retirement Residence, which was evacuated following a COVID-19 outbreak that infected 64 residents and 22 staff members. Sixteen people died.

In the days after that outbreak, public health said it was urgently inspecting eight homes connected 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 are in 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 received complaints from neighbours about the conditions there on a weekly basis.

Johnson said public health, bylaw and the 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."