Decision delayed on Westmount mall office expansion proposal

Councillors deferred a rezoning request after debate over downtown office policy and concerns about retaining hundreds of jobs.

Revitalizing downtown and preventing hundreds of jobs from potentially leaving London were among the themes of a passionate political debate over a proposal to rezone Westmount mall to allow more office space. Members of the planning and environment committee unanimously voted Tuesday to defer a decision on rezoning the mall owned by Farhi Holdings Corp. to allow a significant expansion of office space for a single tenant. Though city planners declined to identify the business, The London Free Press first reported the prospective tenant is London-based software company Carfax Canada – a point that shaped much of Tuesday’s debate.

“The bottom line . . . 800 jobs, and we’re going to try and jeopardize that through some kind of slavish devotion to some kind of bureaucratic regulation or rigid rules – that just doesn’t cut it for the people of London,” said Ward 10 Coun. Paul Van Meerbergen, who represents the area on city council but is not a member of the committee.

“Business decides what it needs, and if business decides that it has to tick several boxes, and they can’t find it in London, Ontario, they will simply move, and what a disaster that will be.” City staff recommended against the rezoning that would allow up to 242,000 square feet (22,500 square metres) of office space, including a single office building of up to 135,000 square feet (12,500 square metres). Staff argued the proposal conflicts with city policy encouraging major office tenants to locate downtown.

The Free Press has reported Carfax is looking for a new home because it plans to add 200 employees to its current workforce of 600. The company is now located at 100 Kellogg Lane. The mall on Wonderland Road south of Viscount Road used to be called Westmount Shopping Centre but is now known as Westmount Commons.

Jennifer Gaudet, an associate with MHBC representing the applicant, said the prospective tenant evaluated many large-format office spaces, including downtown locations, but preferred Westmount. She said the referral is needed to secure the tenant’s commitment. “Westmount Commons was identified as an ideal location by this business, as it can accommodate 900 parking spaces, is served by transit, has existing contiguous and available office space, and is compatible with surrounding uses,” she said.

“We are satisfied that Westmount Commons is an appropriate location for the increased office development that will help the city achieve its employment goals.” Downtown advocates supported the staff recommendation, including the head of the Downtown London business district, who told city councillors in a letter that concentrating office employment in the core ties into broader economic development. Bonnie Wludyka, property manager at Citi Plaza, told committee members downtown has the office space and parking to accommodate major employers.

“When our owners invested in Citi Plaza in 2020, they made a long-term commitment to downtown London. That decision was based on the city’s longstanding planning policy, which identifies downtown . . . as the primary commercial office centre,” she said.

“The decision before you today extends beyond a single property or single tenant.” The possibility of Carfax leaving London was a consistent theme during the debate, but Coun. David Ferreira said the company has not said it plans to leave.

“The sky is falling argument is not going to work,” he said. Ferreira, who represents downtown on city council and is not a committee member, referenced the creation of suburban malls and their impact on siphoning major retail tenants from downtown. He urged colleagues not to make the same mistake with office jobs.

“The same suburban malls, who are struggling themselves, to save themselves, are potentially seeking that office space and that recovery the downtown used. History is repeating itself,” he said. “That will set a precedent that will forever hurt downtown (and) its recovery.”

Deputy mayor Shawn Lewis, vice-chair of the planning committee, said the prospective tenant had already considered downtown space but rejected it because of parking needs and more expensive square footage. “Would I like to see more commercial space filled up downtown? Yes, but it has to be the right fit for the employer,” he said.

“It’s not our responsibility to say, ‘No, you can’t move to Westmount, you have to move to Citi Plaza.’ Our responsibility is to look at a zoning application and make a decision on that.” If city council approves the referral recommendation on July 21, there is no firm timeline for the application to return.

Gaudet suggested it would likely take more than 120 days.