The motion put forward by Councillor John-Paul Danko passed unanimously in a 16 to 0 vote. Pictured: Councillor John-Paul Danko. Photo Credit: City of Hamilton.
A motion brought forward by Councillor John-Paul Danko (Ward 8 – West/Central Mountain) to have city staff review the city’s controversial tiny shelter purchase was approved by Hamilton Council on Jan. 22.
The motion passed unanimously in a 16 to 0 vote.
The city’s purchase of 40 tiny shelters to house the homeless has been marred by controversy, with project delays and revelations that the structures were actually manufactured in China rather than from a local company.
Brantford-based company MicroShelters Inc. was chosen by the city to deliver the tiny shelters and also became the subject of some legal controversy with California-based company Foldum Corp. sending them a cease-and-desist letter claiming that MicroShelters Inc. was using photos of their tiny shelters on their website.
It was then revealed that MicroShelters Inc. was only created on Aug. 28, 2024. Hamilton Mayor Andrea Horwath issued a directive to staff to create a tiny shelter community on Aug. 6, 2024.
The company was chosen by the City of Hamilton to deliver shelters without a proper competitive procurement process or due diligence, with the city citing time constraints.
News reports then also revealed that MicroShelters Inc was actually sourcing the tiny shelters through an American company called Global Axxis LLC which in turn sources shelters through China.
Then, the shelters were supposed to be up by Dec. 20, 2024, but the project was delayed until mid-January due to shipping issues.
The city also says that they are paying taxes, shipping, and duties on the tiny shelters, further escalating costs.
Danko’s motion notes that the decision on procurement of the shelters was made by the General Manager of the Healthy and Safe Communities Department after Council directed them to execute all agreements necessary for the project.
Thus, the motion directs the Healthy and Safe Communities Department and the city’s procurement staff to report to the next Procurement Sub-Committee meeting (March 7, 2025) with a “review of the details of the Barton Tiffany structure provider and outdoor shelter operator single-source contracts including compliance with city purchasing policy and contract terms.”
The motion adds that the report should also include “a financial evaluation of the single-source Barton Tiffany structure provider contract versus the units delivered and assembled on site in terms of value for money.”
In comments on the motion, Councillor Tom Jackson (Ward 6 – East Mountain) said that the project optics “have been horrible.”
“It’s unfortunate because it should have been a good news story,” he added.
Horwath, who initiated the tiny shelter community with her mayoral directive, appeared to defend the project despite all the issues.
“This crisis is unfolding everywhere and nobody has found a solution. And so what we’re trying to do is find solutions in an expedited way that address the crisis, the emergency that we’ve been in,” she said.
However, given that there was talk of tiny shelters since well before last winter, it remains unclear why Horwath waited until August 2024 to issue her directive to staff since it meant that the tiny shelter plan was not approved by Council until September 2024, just three months before winter.
Horwath added that there is “a lot of misinformation out there, including why the kinds of units that were chosen were chosen, the temporary nature of those units, the fact they can be reutilized.”
The City of Hamilton has consistently noted that the tiny shelters from China are able to be folded up for easy storage and smooth transportation to another location if needed.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
