PenEquity deal in place for retail development after talks with UTRCA

CTV London: UTRCA strikes deal with PenEquity A controversial south London development will avoid an OMB hearing after a deal with the conservation authority. Daryl Newcombe explains.

A controversial retail development in south London will clear a major hurdle Thursday morning.

CTV News has been told by the Upper Thames River Conservation Authority (UTRCA) that a deal has been struck with PenEquity group to avoid a hearing in front of the Ontario Municipal Board (OMB).

Last summer it was the biggest decision facing city council -- the decision described by some as : Trees vs. Jobs.

And now a decision by the UTRCA is setting the stage for the debate to start all over again.

Last summer, Londoners were divided over a proposal by Toronto based developers PenEquity realty to build a sprawling next generation shopping centre on this property south of the 401 next to Costco.

Between 1000 and 1200 retail jobs would be created but the existing wetland and woodlot would have to go.

Ultimately city council approved the project but only if several environmental conditions are met -- including approval from the UTRCA.

On Wednesday, the UTRCA confirmed that it has reached an agreement with PenEquity that will see both sides compromise -- but ultimately give the project their approval.

The terms of the deal will be presented to the OMB Thursday.

"There are still a number of other hurdles that they have to go through," says London mayor Joni Baechler.

Baechler sat on the board during those negotiations and says the matter is far from settled.

"Discussions were long and difficult and they would not settle lightly and it would have been a difficult decision," says Baechler.

The arguments made against developing the property could be grouped into two categories, environmental and economic.

Some Londoners felt the city already has a surplus of commercial real estate and the promised jobs would really just be relocated from other parts of the city.

Baechler stresses PenEquity can't start cutting trees.

Council also insisted on an environmental compensation package if part or all of the property is cleared.

That included PenEquity planting 6 new trees for every one removed and paying to preserve a similarly threatened woodlot in the city.

"If the appeals are resolved Thursday, PenEquity would likely be in contact with legal or planning to try to resolve the outstanding issues," Baechler adds.