For now, the construction work to extend Veterans Memorial Parkway south of Highway 401 is a persistent pain. Drivers face delays and detours around the four-lane artery that connects dozens of businesses in London's east end to North America's busiest highway.

But after that pain, Kapil Lakhotia, CEO of London's Economic Development Corporation, expects a big gain in the form of new investment on yet-to-be developed industrial land.

"This will benefit our industrial core and improve development opportunities south of Highway 401," he said in an interview on CBC's London Morning.

The $22-million project — the cost is shared by the city and province — will carry the parkway over the 401 and extend it 800 metres south to Wilton Grove Road.

In an apparent attempt to head off skeptics who question its need, Lakhotia points to the city's Industrial Land Development Strategy (IDLS). Created back in 2001, the plan called for the city to set aside and develop a constant supply of "shovel ready" light-industrial land to lure to businesses to London.

The plan was based on a simple premise: that money spent creating industrial parks — even before there were businesses to fill them — would draw to London companies keen to be near Highway 401.

Opened in 2014, the $135-million Dr. Oetker pizza plant in London employs more than 100 people. Kapil Lakhotia of the Economic Development Corporation said it's an example of the success of the city's plan to set aside serviced land for new industries. (Andrew Lupton/CBC)

A handful of industrial parks were created (see sidebar below), many connected to Veterans Memorial Parkway north of Highway 401.

Lakhotia says the plan has been "phenomenally successful" in attracting new businesses: 65 new companies have come, bringing with them some 5,000 jobs.

Last year about 60 acres worth of city-owned industrial land was sold, the highest total since 2011. Buyers included auto parts maker Sodecia, which plans to expand its presence on Innovation Drive near Veterans Memorial Parkway and Bradley Avenue.

Other success stories in recent years include the massive Dr. Oetker frozen pizza plant just off Bradley Avenue.

Lakhotia says now it's time to look south of the city to keep new companies coming and ensure the pace of growth doesn't slow.

He points out that other municipalities along the 401 corridor are looking to do the same.

​"The competition is quite intense," he said. "That's why we have to customize our approach. It's no longer just a patch of dirt that companies are looking for."

Listen to the London Morning interview here.

London Drive Systems is located in Forest City Industrial Park off Wilton Grove Road near Highbury Avenue. Matt Lake said it's essential for his business to be close to Highway 401. He says extending Veterans Memorial Parkway will help local businesses. (Andrew Lupton/CBC)

'Perfect' location

A case in point is the Forest City Industrial Park, located on the north side of Wilton Grove Road east of Highbury Avenue. Built on a 178-acre piece of land in 2001, the park is now full and home to big operations like Fed-Ex and smaller companies like London Drive Systems.

With nine employees, London Drive Systems builds and repairs drive shafts for heavy duty-trucks, racecars and other vehicles. They serve a clientele that extends across Canada and into the United States.

Co-owner Matt Lake says acquiring a serviced lot near the highway was essential for his business, which moved in in 2009.

"This location is absolutely perfect for us," he said. "All the truck traffic knows where we are and our customers can easily find us."

Directly across Wilton Grove Road from London Drive Systems, the city plans to create a new, 117-acre industrial park on what is now an empty field.

Lake says the new park will help "create a hub" of new businesses that believes will thrive on the improved highway access.

This city-owned, 117-acre parcel of land is located on Wilton Grove Road, across the street from the Forest City Industrial Park, which is fully developed. The city acquired the land for development into another light industrial park. (Andrew Lupton/CBC)

London industrial parks with serviced, city-owned land: Innovation Park Phases I to IV (Veterans memorial Parkway north of Hwy. 401) Total available net acres: 211 Skyway Industrial Park (Veterans Memorial Parkway north of Oxford Street) Acres available: 25 Forest City Industrial Park (Wilton Grove Road east of Highbury Avenue Acres available: 0 (It's full) River Road Industrial Park Veteran's Memorial Parkway north of River Road. Acres available: 8 Trafalgar Industrial Park (Veterans Memorial Parkway, north of Gore Road and south of Dundas Street) Acres available: 7 Note: The city also owns about 470 acres of unserviced industrial land in the following five industrial parks: Huron, Forest City South, Innovation park (Phase V, Cuddy Industrial Lands, 2150 Oxford Street East, and Highbury and Highway 401 lands.

The 'highway to nowhere'?

Not everyone is elated by the southward march of Veterans Memorial Parkway.

Tommy Faulkner's family owns London Dairy, a 200-acre farm that will border the new road.

He calls the extension a $22-million "highway to nowhere."

"It's a totally unnecessary extension at the taxpayer's expense," he said.

Faulkner said the area already has enough highway access via Highbury Avenue in the west and Highway 74 in the east.

He points to empty fields along a rutted Wilton Grove Road and says the city should have first taken steps to fill all its industrial zoned land north of Highway 401 before building the expensive link south.

Coun. Jared Zaifman, whose ward includes Wilton Grove Road, says the infrastructure must come first.

"This has been a long time coming," he said. "When our economic development folks are pitching to companies, we have to have land ready to be developed."

A 2014 city report looking into the supply of industrial lands said about 30 per cent of London's total workforce (roughly 35,000 people) earn their paychques on lands designated light industrial or general industrial in the city plan.

The extension of Veterans Memorial Parkway is scheduled to be complete by next year.