Rezoning of land next to Highway 401 in south London for a $200-million shopping centre development has been approved by London’s Planning and Environment Committee.

But the proposal by PenEquity Realty Corporation could still face opposition from the full city council, Upper Thames River Conservation Authority (UTRCA) and Ministry of Natural Resources.

The debate at times became heated after Mayor Joe Fontana moved to approve the recommendation from city staff to proceed with the development.

Fontana pointed out that Tuesday night’s debate was strictly about zoning, and that the project can’t proceed without the approval of the UTRCA and Ministry of Natural Resources.

The ministry has disputed a report presented earlier Tuesday by consultants for PenEquity that call a wetland in the proposed location “non-provincially significant.”

The public has also raised concerns about the ecological significance of the nearly 10.4 acre woodlot on the site, stalling approval for the project.

But PenEquity’s consultants claim neither the woodlot, nor the wetland on the proposed site is environmentally significant.

They also say 79 per cent of the trees there are elm and ash trees that are doomed by disease and insects.

PenEquity says the shopping centre project would create 1,200 permanent retail jobs and bring $2.8 million in tax revenue to the city each year.

Councillors want former cookie factory left alone

City councillors also told city staff at an afternoon meeting to stay out of the redevelopment discussions for the former McCormicks-Beta Brands factory in the east end.

Ward 6 Councillor Nancy Branscombe says “The problem here is that I don’t see what municipal use there could be or where we would ever get the money for it anyways.”

City administration had been considering taking over the abandoned factory, but no details on what it would be used for have been released.

At the same time two private construction firms have expressed interest in redeveloping the site.

Amid concerns interest by city staff could drive away private sector interest, the committee recommended putting an immediate halt on finding a municipal use.

Two private sector proposals are expected in November.