Hamilton tried to shut down Budget Inn. Two years later it remains open
Nearly two years after the City of Hamilton attempted to shutter the Budget Inn, the discount King Street East hotel remains open with its business licence in good standing.
On July 31, 2020 the city announced it was not renewing the 35-room hotel's business licence over concerns about public safety, and concerns the owner was not operating with honesty and integrity." The hotel, at the corner of King and Sanford Avenue, was known both as an affordable place to stay, but also the source of complaints in the community about crime and disturbances.
At the time, owner Pravin Patel told The Spectator that he was trying to make improvements, but sometimes there were problem guests or visitors. He said staff were quick to call police.
The business appealed the city's decision not to renew its licence, but in 2020, the city's licensing tribunal was not meeting due to the pandemic. For many months the situation was stalled.
Now, the city says a new owner took over the business, met conditions imposed by the city and its licence is in good standing. The downtown Hamilton hotel continues to see a high number of 911 calls, although they have been steadily declining since 2021, according to Hamilton police statistics.
Repeated calls and emails to the Budget Inn were not returned. Staff at the hotel who answered the phone told The Spectator that they did not know anything and could not answer any questions.
According to the establishment licences issued by the city, Samit Patel was named on the licence for the 737 King St. E. business in 2019 and 2020. But in January 2021, the name changed to Jayprakash Patel. Jayprakash was issued a six-month, conditional licence and worked with the city.
The relationship between Samit and Jayprakash is not clear. However, despite the name change, the corporation that owns the business did not change. On all the business licenses issued to the Patels since 2019, the owner is listed under 2673422 Ontario Inc.
City spokesperson Michelle Shantz confirmed it is the same corporation, but that new directors were added to business and the new licence holder (Jayprakash Patel) applied to the city under the changed structure.
Licensing staff and the new business owner worked together and agreed upon conditions to be placed on the licence," Shanz said. The city officially cancelled its notice of the licensing tribunal hearing in February 2021.
Licensing - in partnership with public health - continued to monitor the business through the conditional licence stage," she said.
According to city documents, the conditional licence issued in January 2021 required a new corporate owner or changes to 2673422 Ontario Inc.'s corporate structure, along with the dismissal of front line staff and management that worked at the hotel and the hiring of new staff.
The conditional licence also required: increased security measures (on site security and cameras); improvements to the building; a robust code of conduct" for registered guests that includes a process to immediately evict guests suspected of contravening that code; the removal of guests that have contravened that code of conduct in the past; compliance with all bylaws and laws; and prohibiting unregistered guests or unknown persons from entering the premises with approval of the front desk.
Shantz said all the conditions of that temporary licence were met. A new business licence - without conditions - was issued this past February that is valid through to January 2023.
The hotel is still the site of frequent emergency calls, but the number has decreased, according to statistics obtained by The Spectator.
In 2019 there were 214 emergency calls to the hotel, including 144 that required police to attend (the remainder were Hamilton fire and/or paramedic calls). The most common calls included disturbances (32), assist ambulance (19), domestics (10) and trespasser (seven) where police were required. There was also one call for a possible shooting, one for a stabbing, one for an assault and seven weapons calls requiring police that year.
In 2020 - when the city attempted to shutter the business - the number of calls rose to 287 emergency calls with 188 requiring police. Again, assist ambulance (18), disturbance (21), domestics (21) and trespasser (10) were the most common calls where police responded. There were four calls each to police for assaults and weapons.
In 2021, when the city issued the conditional licence, 911 calls went down to 153 with police required at 81 calls. The most common 911 calls were for ambulances where police were not required. Of the calls where police were required, the most common were disturbance (11), assist ambulance (7), trespasser (3) and unwanted guest (8). There was one stabbing call, two calls for assaults and one weapons call requiring police.
In the first six months of 2022, the numbers continued to fall with 61 emergency calls, including 37 requiring police. The calls requiring police included six trespassers, four for unwanted guests, and three domestic calls.
Back in 2020, Ward 3 Councillor Nrinder Nann said her office fielded many complaints about the hotel. Neighbouring apartment buildings had to invest in upgraded security. But the problem was also complex - a lack of affordable housing meant the hotel was one of the only places some could afford. She was concerned about everyone's safety.
Residents of the hotel in 2020 told The Spectator it was often people not staying at the hotel who caused problems.
On Friday Nann said, it remains critical to keep a very watchful eye on this establishment given the number of 911 calls that continue to be made at this location."
I continue to encourage the owners to be a good neighbour and proactively address safety concerns prompting the 911 calls," she said.
Nicole O'Reilly is a crime and justice reporter at The Spectator. noreilly@thespec.com