The City of Hamilton expects Global Axxis LLC to deliver its 40 tiny shelters to the Barton / Tiffany site on Monday, January 13.
On Thursday, the State of Wyoming administratively dissolved Global Axxis LLC after the company failed to file its annual reports and pay the state’s $60.00 (USD) annual license tax.
The City of Hamilton incorrectly states that Global Axxis LLC is the “manufacturer” of the tiny shelters. Global Axxis is a middleman company hired by the City’s other middleman contractor.
Global Axxis LLC’s problems are just the latest in a string of issues resulting from the City of Hamilton’s decision to sole source the purchase of the tiny shelters to a newly incorporated firm with no experience.
The City initially hired Microshelters Inc., a newly incorporated company with no experience, to deliver the tiny shelters. The City granted this new company a non-competitive, no-diligence $1.4-million contract while disqualifying experienced local companies.
Making another exemption to good procurement practices, the City took on responsibility for shipping and paying taxes and duties in addition to the $1.4 million given to Microshelters Inc.
Microshelters Inc. presented itself to the City using images and content from another company.
(Microshelters Inc. misrepresented itself using images and content from another company, Foldum. The City says the misrepresentation is a third-party issue between those companies and does not involve the City.)
Microshelters Inc. contracted Global Axxis LLC as its middleman to procure the shelters.
On December 24, the City expressed its complete confidence in Global Axxis LLC, accepting Microshelters Inc.’s statement that Global Axxis LLC is an experienced company in this field.
On the same day, the City stated the belief that Global Axxis LLC is a manufacturer.
The made-in-China shelters arrived in the United States on December 26. (The City expected them to arrive in Canada on this date)
The City originally expected the shelters to arrive in early December, but on December 24, they announced they would arrive on January 6.
The dissolving of Global Axxis LLC should not impact the delivery of Hamilton’s tiny shelters.
Note: A TPR reader shared the State of Wyoming announcement posted as a comment here.
Production Details
v. 1.0.0
Published: January 12, 2025
Last updated: January 12, 2025
Author: Joey Coleman
Update Record
v. 1.0.0 original version
Joey, please post a follow-up once the shelters are actually received. Thanks.
I will be.
This should have been titled ” Nothing new at Silly Hall”
When are we going to clean house within the city civil service? Who thought that this was a good idea?
When are “we” going to learn that the lowest bidder is always that for a reason. How many more city contracts will ” Lowest bidder strikes again ” Who really thinks those buildings are ever going to show up?
This whole ordeal should be turned into a movie. A comedy obviously.
Having said that, I hope this project is successful in the end and is a step in really helping some people that need the help.
Everyone working for the city of Hamilton involved in this purchase should be fired.
If this was in the private sector, everyone from the CEO to the person who signed the contracts would all be fired. I am willing to bet that all involved in this purchase in Silly Hall are making six figures plus. I hope all Hamiltonians demand that they all resign.
Why is Canada hiring a Japanese company to make tiny homes when we can do it ourselves and avoid all the red tape bs ?
Fools are obviously calling the shots in Hamilton
Chinese not Japanese.
I don’t u derstand why we are going out of country for suchvthingsvwhen therevis a viable tiny homes company operating right in this very city. Another good idea would of Been to hire the local highschools trades program to build these( the teachers are double qualified tradespeople)
This will be another thing we will laugh at when horrible Horvath tries to run again.
As a taxpayer I request from our elected officials a full external independent audit and accounting of this project with a public report issued to the citizens of this city. Only then will we have the true facts not the alternative facts. I’m not confident that the answers we’re getting from city hall are always accurate.
Sad thing is that would probably cost more than the project itself knowing this city lol…
Curious question, does anyone know they details of the initial deal, including how many total, what quality, etc? Are the other companies in the area well vetted, or have done some fishy dealings as well, which made out – of – country sourcing these shelter packages more appealing?
Funny, not in a good way.
Did you hear recently that the Amish living around Boone, NC, USA, heard of the homeless issue, raised US$300,000 themselves, then had a building bee to create 62 individual shelters…in a single day?
If it were me, I would ask, “Why is it that we, as a city, cannot incubate those with ideas and plain, old gumption, to handle this problem here and now?”
Living in another Ontario town, I am equally disappointed with our own, “Silly Hall.”
This should be headline news!! I’m serious!
We cannot continue to let these fools make decisions costing the taxpayer all the while they are planning on raising tax rates.
Just disgusting how our tax dollars are being abused. The captain of the ship must take accountability when it sinks. Andrea, you are the root of the problem here! Where are you?
Who in city hall approved the sole source contract without any due diligence?
They should be looking for a new job this morning.
How about those tiny home builders in Quebec???
Good grief!
How many contracts are given in this fashion in Hamilton?
Time to get some fiscal control in city hall
How can these people justify not giving this contract to a Canadian company I guess it’s easy when there is never any accountability for the bad decisions they make with our tax dollars
Wow, stunning. Terrible situation.
I hope the people that need help are ok
Non- Competitive No- Diligence. Really !!! Andrea what’s happening here?
I, too, am disgusted that our tax dollars are going to the States and China. We have companies in Hamilton to do the job. We also have a great Amish community that if approached would be interested in such a project. It makes me sick!!
Agree 100%
Hey there, I know a company in Cambridge that built the cabins for Waterloo, why would Hamilton not use them? Called NOW Housing. You get what you pay for when you buy china!!!
Agree 100%
This is wild
Joey can you request Access to Information to dig into this approval process? This seems to violate the City’s own procurement policies.
The City of Hamilton is extremely careful about not maintaining documentation. They are diligent about destroying records after 28 days. Contracts are designed to include information that can be used to argue a freedom of information exception applies.
The City of Hamilton charges high FOI fees, and they are very slow to process freedom of information requests.
City Hall is also citing its ongoing cybersecurity failure as a reason they are not able to complete FOI requests at this time.
Wow, 80 people in one location, what a mistake that is. I am in the shelter and outreach game and that is far too many to manage. Good luck Hamilton
What’s wrong with our city, overlook local suppliers for Chinese/US Middlemen and absorbing duties, taxes, etc. It’s time to take a hard look at our decision makers and as tax payers say enough is enough.
Get rid of our Mayor – she is costing us the tax payers millions. The whole project is a joke.
A joke is right, I know the people from one of the local suppliers that built cabins for a place in Waterloo, I heard all about it when they were trying to work with Hamilton. They worked very hard to get the contract and were just ignored in the end.
And the city couldn’t find any reputable Canadian companies to provide these shelters???
Time for a change in City if Hamilton’s management!!!
How much money could have been saved if the City gave high school shop and college trade classes design and minimum standard specs. to build these?
Why did the city buy Chinese tiny shelters? Why did they not set up a construction
agreement with Mohawk College, or the other institutions, offering apprenticeship
programs in the construction field as part of their training and give the students
practical experience, under supervision, and credit for their courses. This would
probably cheaper and result in more houses for the money. Politics is amazing, ugh!