Following an expensive, nearly ten year legal fight, city council is paving the way for a 95,000 sq. ft. Wal-Mart location in east end Stratford.

The city has spent millions at the Ontario Municipal Board (OMB) fighting to have the new department store located in the city's west end.

There were concerns that development is happening too rapidly in the east, putting it out of balance with the west end and downtown core.

In September 2010, the city launched a study and put a control by-law into effect, prohibiting any department store developments for one year, stopping the megastore from moving forward at their chosen location, a move approved by the OMB.

But because a new site in the east end became available that was already approved for retail, lawyers said the city by-law can't be applied to the property.

So at a special council meeting on Thursday night, councillors voted to repeal the by-law, allowing the development to go ahead.

Stratford Mayor Dan Mathieson says "To paraphrase our lawyer last night, I thought you had a 50/50 chance of winning this last September…today I'm telling you, you have zero chance of winning."

The new store is expected to be located on the north side of Ontario Street, just west of C.H. Meier Boulevard, a few blocks from the original location preferred by the big box store.

The location is still officially owned by a developer, but talks are already underway with Wal-Mart.

But it will not be as big as Wal-Mart originally wanted. The smaller property means the store will be about 45,000 sq. ft. smaller than original 135,000 sq. ft. facility planned.

Mathieson says "This is probably the best deal the city could get."

Many merchants and residents still don't want Wal-Mart in the city, amid concerns that it will put more stress on small businesses that are already facing challenges.

Gary O'Connell owns Fundamentals Books and Toys in Stratford, he says "I'm not very happy because it seems somehow council should be able to decide what happens in this town and that's not the way it seems to have worked."

Another OMB hearing was scheduled next month for Wal-Mart to challenge the by-law, but that is no long necessary.

However, the City of Stratford will be returning to the OMB to try to recover some of the $1.4 million spent in legal fees.

Construction on the Wal-Mart location is expected to begin in 2012.