Big-box stores in Central Saanich are a step closer to reality.

Council split 5-2 in favour Monday night of moving forward on a motion to remove a restriction on store size in the Keating Cross Road area.

Currently, stores are not allowed to exceed 54,000 square feet. That effectively shuts out "big-box" stores from the municipality.

The motion to remove that maximum will go to a public hearing March 12. Council would not make a decision on the removal until after the public hearing.

"I support it moving forward - it sends a message out to the business community that we are least open to entertaining applications or initiatives," said Coun.

John Garrison. "I don't think this amendment will allow things to run holus-bolus. It says we're open for business and prepared to look at major retailers if they are appropriate."

Garrison and councillors Cathie Ounsted, Terry Siklenka and Carl Jensen voted in favour of the motion going to a public hearing, as did Mayor Alastair Bryson. Councillors Adam Olsen and Zeb King voted against it.

Siklenka said that larger retailers need to know there is space in Central Saanich for them, other than on First Nations land. If the municipality removes "hurdles," those stores might set up shop on municipal land and provide tax revenue, he said. Developments on First Nations land do not pay taxes to the municipality.

A 650,000-square-foot shopping centre has been proposed for Tsawout First Nation land at the corner of the Pat Bay Highway and Jesken Road, midway between the Island View and Mt. Newton intersections.

No big-box stores for that development have been confirmed, but there have long been rumours of a second Costco in the region. As well, the Co-op store is considering relocating to land on the Tsartlip First Nation land.

Olsen said the so-called "hurdles" aren't necessarily there and that the current 54,000-square-foot maximum still allows for a very large store.

Central Saanich needs to diversify its tax base, or the cost of replacing aging infrastructure will fall on the backs of residential taxpayers, Ounsted said. She said there may well be room for development on First Nations land as well as Keating, and that they could complement each other.

The Tsawout proposal is dependent on getting improved road access to the site.

At a staff meeting between the Ministry of Transportation, the municipality, Tsawout representatives and the development company they have partnered with, several overpass options were presented. None suggest an overpass at Mt. Newton, which is where the municipality has lobbied for an overpass for more than a decade.

None of the preliminary overpass options show much of a benefit for Central Saanich, council members said.

Council wants to have a meeting with the Tsawout council as soon as possible to discuss overpass options. Central Saanich will also let the Ministry of Transportation know that council has significant concerns with preliminary options.

kwestad@timescolonist.com

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This story has been corrected; the proposed shopping centre on Tsawout land is 650,000 square feet, not 65,000 square feet.