I think Lost Girl
is probably set in Toronto, where it's filmed, because in the episode where Ryan got hooked on Bo and almost married her, it was mentioned that they were only a couple of hours from "the Falls," presumably Niagara Falls, which is about a 90-minute drive from Toronto.
As far as taking a demotion goes, Trick didn't mind stepping down from Blood King to tavern-keeper. Still, he's made it pretty clear that he has no interest in assuming a position of power once again, due to his regrets at the decisions he made the last time. He might be offered the Ash position, but he'd be loath to accept it.