CITY PONDERS LIFTING LICENCE

Almost 50 people could be out on the street if an infamous Downtown
Eastside hotel loses its business licence, say homeless advocates.

The Lucky Lodge on Powell Street was one of three hotels busted by
police in a 10-week undercover operation last December. Project Haven
produced multiple allegations of drug dealing and welfare fraud within
the hotels.

The city is now considering stripping the hotel of its business
licence, claiming a recent history of "poor management".

But Kim Kerr with the Downtown Eastside Residents' Association says he
fears slum landlords are using the city as a free eviction service to
clear the way for selling their problematic, but potentially valuable,
properties ahead of the 2010 Olympics.

"We think there's a strategy for these hotels to get vacated," Kerr
said in an interview, citing recent cases like the nearby Pender Hotel
or Burns Block that were cleared out because of fire regulations. The
Pender was sold last month, while the owner of Burns Block has said
he's looking to sell as well.

"The stories are a little different except for the fact that people
end up on the street."

But city lawyer Catherine Kinahan said denying Lucky Lodge a business
licence wouldn't necessarily mean its residents would be evicted.

Jonathan Baker, the lawyer for the hotel's owner, said his client
would likely sell the building if he lost the business licence.

The matter has been deferred until next month.