Al Woods said the hospital will now have to figure out other, potentially more difficult, options for expansion when the time comes.

"We are certainly very disappointed," said Woods. "We see it as a lost opportunity there for the future. The hospital may have to look to the steeper, rockier terrain behind the hospital to expand.

City council decided 6-2 to sell the property to Calgary-based Westfair Foods at special council meeting Thursday night.

The company, a subsidiary of national supermarket chain owner George Weston Ltd., plans to build a 55,000 square-foot Extra Foods store across the street from its current location at Range Lake Road and Old Airport Road. They offered the city $1.75 million to purchase the lot.

Hospital had a chance

Coun. Robert Hawkins, like several other councillors, said the Department of Health and Social Services had its chance to purchase the lot for hospital expansion, but failed to respond.

While only two councillors are opposed to the idea, debate at the meeting led to several heated exchanges.

"You don't hear a need for a bigger grocery store," said Coun. Ben McDonald. "What you do hear is a need for more (affordable) housing. I don't believe that sort of development is healthy for the community."

McDonald and Coun. Kevin O'Reilly wanted council to accept one of two other offers made to the city. Both schemes would see the development of mixed commercial and residential buildings on the lot.

McDonald acknowledged that he was a member of the previous council who voted in favour of "big box" developments along Old Airport road during the early 1990s, but said it was a "mistake."

Other councillors jumped on McDonald and O'Reilly's objections.

"People that complain about big box developments are the same people that complain about the high cost of living in the North," Coun. Alan Woytuik shot back.

"We can't go sticking our heads in the sand and hope everyone goes back to living with dog teams and snowshoes."

O'Reilly said his first preference would be to hold the land for the hospital; his second, to accept one of the other two proposals. He said he also believes the supermarket chain will hurt the downtown core, drive down wages, and create a situation where money would flow down South instead of back to the community.

As for Ray DeCorby, owner of the building currently housing Extra Foods and now likely in need of a new tenant, he said he is still "digesting" council's decision, and needed more time before commenting.