Again, misinformation does not help. No police have been involved, it has been by-law compliance. That is a municipal civil matter.
National issues regarding sex work have been in limbo for years now, and the courts and parliament have done nothing to clear it up.
So, no law enforcement, the police, have anything to do with the changes in one municipality. Nothing criminal being addressed, totally a civil matter to this point. And I do believe that the most recent criminal code changes removed the old "found in" bawdy house as an offence. Google is your friend.