City council voted unanimously to support a significant redevelopment of the Kensington Legion site.
A developer will build a new home for the Legion branch and use the rest of the site for a new condo-retail development featuring a grocery store.
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The legion had warned it might have to close the branch and sell the land if council didn't approve the plan.
The proposal faced opposition from some area residents concerned over increased traffic. They argued the eight-storey building is too tall and the development doesn't fit the scale of the neighbourhood.
Coun. Druh Farrell said in council that the lead up to this decision was contentious, with emotions running high in the community.
She also said she heard from some who felt uncomfortable voicing support for the project due to the intensity of some of the opposition.
Mark Barham with the Kensington Legion says many other branches across the country are watching the proposal closely because many are under stress due to declining membership, and the need to renovate aging facilities.