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What exactly is the problem? I can't think of a time where the HD parking lot was full and this proposal doesn't really eat into any parking spaces used by Home Depot customers. The development brings more customers into Home Depot's back yard. What's not to like?
I'm certain this project can be managed with minimal disruption to HD shoppers. Five million in compensation seems excessive, akin to extortion. It's foolish for HD to sabotage the entire dying mall since every other tenant is making a big sacrifice.
Perhaps they're concerned with how this could restrict the potential for Home Depot to expand in the future? They're asking for a 10,000 sq ft expansion as well as the $$.
And...the municipality knew nothing of the 'issue' until it (the issue) reared its ugly head.
My guess is muni will be squeezed and likely was planned exactly as it is playing out at the get-go.
Hard for Saanich to turn down the affordable housing the project promises on a minor issue such as it is between the tenant and developer. A concession can fix this all up nice and tidy-like.
I'd advise muni suck it up and get their pound-of-flesh down-the-road when that developer
comes back for another development.
i did some more digging on what's going on with this redevelopment and it looks like it's on pause and it could take another YEAR of consultation to decide what to do cause of home depot.
I had a feeling it was on pause cause i saw a save on foods staff member say they were training a new employee. i mean you wouldn't hire more people if the place was going to shut down and now they plan on leasing out he old landmark cinemas place for training sessions on a short term basis.
this is sad considering a lot of places are already gone, including gauntlet games which looks like one of the more popular places

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Massive redevelopment of University Heights Shopping Centre put on hold
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Exclusive: University Heights Shopping Centre poised for major makeover
Over 350 residences and nearly 200,000 square feet of commercial space will transform a significant portion of the Saanich mall.