A contentious debate over a proposed homeless shelter in Etobicoke has escalated at Toronto City Hall, culminating in a council vote to financially back a consultant being sued by local residents and the appointment of that same consultant to a powerful city board.
Council Approves Unprecedented Legal Fee Support
On Tuesday, December 21, 2025, Toronto city council voted 18-3 to approve a measure allowing the city to reimburse consultants up to $50,000 for legal costs incurred while defending against lawsuits aimed at stopping shelter and housing projects. The motion was brought forward by Councillor Paula Fletcher and seconded by Councillor James Pasternak.
City Solicitor Wendy Walberg confirmed to council that this type of reimbursement is without precedent in Toronto. The measure includes conditions: consultants must provide invoices, proof of an insurance policy, and evidence that they tried to have their insurer cover the costs.
The specific lawsuit prompting the move was confirmed by City Hall to be the one filed by the South Etobicoke Community Association, also known as the New Toronto Initiative. The group is suing to stop a shelter planned for a parking lot at 66 Third Street, near Lake Shore Boulevard West and Islington Avenue.
Accusations Fly in Heated Council Exchange
The debate grew heated as Councillor Fletcher, in a line of questioning with city staff, accused those opposing shelters of harbouring hatred for homeless people. "I think there’s a number of places in the province where these groups have decided in order – that hate shelters and hate the homeless, let’s be really clear – they have decided to take everybody to court," Fletcher stated during the meeting.
These comments drew a sharp rebuke from Dan Perdue, a spokesman for the New Toronto Initiative. "It gets my back up that Fletcher told the whole city... that we 'hate the homeless,'" Perdue told the Toronto Sun. He called the characterization "crazy" and argued it was an attempt to dismiss legitimate community concerns.
Councillor Gord Perks, while expressing reluctance about indemnifying consultants generally, supported the motion, citing what he called an "organized and, frankly, hateful campaign against the most vulnerable." Councillor Alejandra Bravo also voiced support, making a cryptic reference to people being "in their crosshairs using a lawsuit."
Consultant Appointed to City Land Board Amid Legal Fight
In a related move on the same day, council appointed the consultant at the heart of the lawsuit, Bruce Davis, to the board of CreateTO, the city's real estate agency. The nomination was put forward by a panel led by Councillor Fletcher and was approved without debate.
Davis is named as a defendant in the lawsuit alongside the City of Toronto and local Councillor Amber Morley. The suit seeks $1 million in damages and aims to have the Third Street site declared invalid for a shelter. In a statement to the Sun, Davis said he is preparing his defence and is "honoured" to join the CreateTO board, citing his desire to help with the city's housing priorities.
Perdue criticized the appointment and the timing of the legal fee reimbursement, questioning Fletcher's awareness. "She is the person that brought the motion to pay Bruce Davis $50,000... she doesn’t even know who’s brought the claim? There’s a disconnect there," he said.
Residents Cite Concerns Over Services and Safety
The New Toronto Initiative argues that the proposed shelter site is too small to provide necessary "wraparound services" for occupants. Perdue also expressed strong opposition to the inclusion of "harm reduction" services at the location, which he described derisively as "handing out needles, pipes and all the paraphernalia."
Local Councillor Amber Morley, who is also named in the lawsuit, did not speak on the reimbursement motion but later called the shelter "a really important city-building priority of mine."
The controversy highlights the ongoing tension in Toronto between the urgent need to address homelessness and the frequent community opposition to specific shelter locations, a conflict now playing out both in neighbourhoods and in the council chamber.
