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However, council ultimately gave first reading to the bylaw, directing administration to make amendments to increase residential space, mitigate shadow impacts on the plaza, and explore integration with the future Green Line LRT. Council also opened the door to relocating the smokestack.

“Eau Claire has been underperforming for a long time and there have been a whole series of proposals to fix it to make it better,” said Mayor Naheed Nenshi.

“Really what we are stuck with is, ‘Are these compromises worth it in order to get the redevelopment that everyone wants at that site,'” Nenshi said.

Eau Claire Market opened in 1993 and was billed as an urban retail and entertainment destination. By 2000, with visitor numbers down and sales drying up, many stores closed.

“Currently, it’s very run down and it struggles to attract exciting activities,” said Maggie Schofield, executive director of the Downtown Association, who spoke in favour of the project.

“The market redevelopment is critical to the revitalization of the area to bring vitality to the Eau Claire area, River Walk and Prince’s Island Park,” Schofield said.

Harvard Development bought the building in 2004 for $28 million with a goal of reinventing the complex as an “urban village” with residential units, a hotel, office space and a larger movie theatre.

The city sold the 2.95-hectare site to Harvard in 2007 for $13.5 million, below market value because the land was encumbered with a 75-year lease and sits on a flood plain. Redevelopment of Eau Claire stalled when the 2008 global recession hit.