Corporation of Hamilton members remained tight-lipped last night after emergency talks to discuss the growing chaos within the administration.

The meeting was called by Municipalities Minister Michael Fahy after a turbulent week for the City of Hamilton team which saw a rebel group of five aldermen and councillors call for the resignation of Mayor Graeme Outerbridge.

The group, which includes Deputy Mayor Donal Smith and Alderman Carlton Simmons, claims that Mr Outerbridge misrepresented the Council as part of his dealings with the $18 million loan for the Par-la-Ville hotel development.

Mr Outerbridge, however, says he has always acted within the realms of his Corporation powers and has vowed to remain in post.

Yesterday, all Council members attended the two-hour meeting at City Hall. The Royal Gazette contacted Mr Smith, Mr Simmons, Larry Scott and Mr Outerbridge, but each turned down requests for comment on the meeting.

Senator Fahy declined to elaborate on the topics discussed, but when asked if there had been talks of removing the “Team Hamilton” administration, he replied: “We didn’t go down that road.

“We are in a good position in terms of dialogue,” Sen Fahy said. “We will be meeting again on Monday. We have good common ground to build on.”

Nor could the topic of a lawsuit against both the Corporation and the developer of the proposed Par-la-Ville Hotel be commented upon, he said, as the matter has gone into litigation. Sources close to City Hall said the lawsuit dominated talks with Sen Fahy.

Describing the discussion as fruitful and constructive, the Minister said afterwards: “We have been having a dialogue about where the Council is and where the Government is to find common ground and move the city forward and the country forward.”

Yesterday The Royal Gazette reported that the developer of a proposed hotel and the Corporation of Hamilton are facing legal action over an $18 million loan.

According to two writs filed in the Supreme Court on Tuesday, Mexico Infrastructure Finance LLC is suing Par-la-Ville Hotel and Residences Ltd (PLV) and the Corporation.

The action is linked to an $18 million loan from Mexico Infrastructure Finance, also known as Alsis Funds, to the hotel developer last year. The Corporation had signed on as a guarantor to the loan.