The $5 million project will demolish the brick Firth Brown Tools factory at Dundas and McLaren Avenue by year's end, say officials from Canadian Commercial Development Group.

City council removed the last hurdle to allow the project to start.

Council approved the land-use conversion in July 2009, but refused building permits until the province and Waterloo Region approved a clean-up of the contaminated factory site. That condition has now been met, so council removed the holding condition.

The proposed 18,000-square-foot Shoppers Drug Mart will be similar in size to its nearest sister store at the north junction of Water and Ainslie streets. It replaces an 8,000-square-foot store in the abutting Highland Shopping Plaza at Main and Dundas streets.

Plans for the 1.4-hectare (3.3-acre) site also have two free-standing buildings totalled almost 14,000 square feet. The site plan calls for 180 parking spaces. Previously, company officials said the project would create 100 jobs when complete.

Firth Brown has until mid-December to find another location for its operations and vacate the old factory. Demolition is expected to be done by year's end and clean-up completed shortly after that, Scott Disney, Canadian Commercial's vice-president, said after final council approval.