A large retail development seen as a threat to Kensington Market shops has been turned down by Toronto’s committee of adjustment.

Developer RioCan had applied for eight zoning variances to put up a 20-metre-high building with small shops on the main floor and enough space on the upper two floors to house “large format” retail.

The development would go up on the site of Kromer Radio on Bathurst St., just south of College St. Kromer has announced it is closing this summer after 55 years.

However, the committee of adjustment on Wednesday rejected RioCan’s request, calling the proposal excessive and one that should undergo greater scrutiny before anything’s approved.

Councillor Mike Layton, who represents the area, now expects the developer to appeal to the Ontario Municipal Board.

Lawyer Mark Noskiewicz noted RioCan had agreed to changes requested by city staff. He argued the intent of the city’s official plan is to see more commercial development along mixed-use avenues like Bathurst St.

RioCan’s building would total 130,000 square feet or 2.45 times the area of the lot, up from the existing limit of twice the lot area.

RioCan isn’t disclosing possible tenants. But Shamez Amlani of the Kensington Market business improvement area worries that a retailer like Walmart could be selling food, clothing and hardware.

“Though it is not a stand-alone ‘power centre,’ its impact will be the same and we feel this development will have huge negative effect on Kensington Market retailers,” Amlani told the committee.

The upper two floors of the project would total 95,000 square feet, suitable for a large-scale retailer, he said.

“It’s massive,” Amlani said. “They would have more floor space than all of the greengrocers, fishmongers and butchers in Kensington Market combined.”

The project was opposed by residents on nearby Markham St. who are concerned it would shade their backyards and set up conflicts with delivery trucks.

“My garage is directly where trucks will unload,” said resident Andrew Overholt, who said trucks could arrive at the same time and block the rear laneway.

The proposal is a threat to the neighbourhood, Layton said.

“Large retail can force out small retail,” he said. “The last thing we want to do is impact Kensington Market that way.”

RioCan’s proposal, which includes three floors of underground parking, would also attract lots of traffic, Layton added.

“If you’ve ever driven Bathurst, you know it’s a nightmare, and it’s a nightmare for people on the streetcar. If you put 300 parking spaces on a streetcar route across from a hospital, you’re asking for trouble.”

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Layton expects the case will end up before the municipal board, a quasi-judicial body set up by the province to rule on development appeals.

“We’ll be ready to fight it there,” Layton said. “It’s the community that’s driving this. They were well prepared going into this and they know their stuff.”