The company wants to buy the Firth Brown Tools factory and redevelop it into a shopping plaza surrounding the store.

The Shoppers outlet in the abutting Highland Plaza would close. A bank is also interested in moving to the new plaza, council heard recently.

City staff had refused to accept a rezoning application for the site, saying a full official plan review was needed because of provincial rules to protect "employment lands."

Studies must be done to justify putting retail on a factory site, staff said.

Shoppers Drug Mart argued the official plan rules didn't apply in this case. And all the necessary studies would be done for the rezoning anyway, council was told.

The company appealed directly to councillors to order staff to accept its application.

Council sided with the company.

Main Street resident Jan Liggett was against the application, saying Dundas Street is already busy and a new cluster of stores will make life miserable for nearby residents.

It will turn into another Hespeler Road, with traffic forced to turn in and out to get to adjoining stores, she said.

Neither will a drugstore and bank create any new jobs. They'll just move from the existing space in Highland Plaza, leaving vacant storefronts there.

Shoppers Drug Mart has studies ready that show there won't be traffic headaches from redeveloping the factory site, said Hans Madan, the company's planner.

Agreements are in place to connect the new shopping area with Highland Plaza and Canadian Tire, which will keep traffic off Dundas Street, he said.Council's decision in favour of Shoppers was described as a way to cut red tape and help create jobs in a tough economy.

Only Coun. GaryPrice was opposed.