A medical marijuana dispensary application headed to a Vancouver board Wednesday appears to be connected to the Sahota family, the controversial landlords whose Hastings Street hotel was deemed unsafe to occupy by the city in June.

Even as some 150 people were facing homelessness after city inspectors found the Balmoral Hotel threatened to collapse, agents connected to the Sahota family were pursuing an application for a marijuana dispensary on the Vancouver’s West Side.

“It’s a red flag for the city for sure,” said city councillor Kerry Jang when told about the connection by CTV News. “We’ll be looking at their business practices, and anything illegal, breaking any bylaws, we’ll put them under a lot of scrutiny.”

He said the city had rejected their application, for a dispensary called "Herban Legends" once, but they had appealed to the Board of Variance to overturn that decision.

That connection was first noticed by Downtown Eastside activists known as the SRO Collaborative, who urged the city’s Board of Variance to deny the application.

The application is put forward by a numbered company, but gives its address care of Bilesh Liyanage, who is identified in court documents as the comptroller for Triville Enterprises, which operates the Regent Hotel on Hastings Street.

Triville was successfully sued by a tenant who alleged rat problems, a broken elevator, broken heat and hot water. It’s one of the organizations that’s being sued in a class action lawsuit by tenants.

The application includes e-mails between Liyanage and George Metrakos, who has spoken to CTV News for the Sahotas in other interviews.

And the main name on the application is Lachman Singh, who is a manager of the Astoria Hotel, which is also operated by the Sahotas.

An affidavit in one of many lawsuits says one Sahota hotel was the site of a ring that stole pillows from nearby hospitals and received cash from drug dealers in exchange for the right to sell at the hotel.

Singh didn’t respond to questions outside city hall today.

About 30 protesters massed on city hall’s north steps with signs saying “keep them out of the pot business.”

One former resident of the Balmoral Hotel, Karyn Derkson, held up a picture she said was taken out of her Balmoral hotel room, pointing to “syringes, dead crows, and pigeons.”

“People who have this kind of money shouldn’t take it from the poor,” she said.

Other protesters have stormed the city council chambers on housing issues. Wendy Pedersen, a protest leader, negotiated with the city to say that wouldn’t happen this time.

In preparation for the protest, the city increased security, by locking the north doors of city hall, shutting the elevators down, and refusing to allow the public into the main city council chambers unless they were speakers to the motion itself.

City hall officials also attempted to remove members of the media, who stayed put. The meeting began with the members of the media present.

Neither Pal Sahota, Liyanage or Metrakos have returned messages.

Another pot shop in Seattle, Washington shares the name "Herban Legends," but told CTV News it wasn't connected to the Vancouver issue.