A question mark hangs over the padlocked Toronto Film Studios complex after a plan to convert the former soundstages into a retail mall was struck down.

The Rose Corporation, a major investor in the Filmport studio, three years ago sold half of the 19.5-acre TFS site to Smart!Centres, a mall developer that proposed to rezone the land for retail use and build a 600,000-square-foot mega-mall, possibly to be anchored by a Wal-Mart. The launch of Filmport last summer on adjoining waterfront land opened the way for the closure of TFS on Dec. 31.

But after local opposition was raised, the Ontario Municipal Board, a quasi-judicial agency that tends to favor property developers, on Wednesday said no to the Smart!Centres redevelopment.

Smart!Centres in a statement said it has ‘no immediate plans for other development or use of the property and will assess all available options to us.’

While local residents opposed introducing a Wal-Mart into their neighborhood, the film industry voiced concern that closing the facility at 629 Eastern Avenue only worsened a chronic shortage of quality soundstages in Toronto.

Privately — the Smart!Centres consortium, which includes TFS — says it did not expect the surprise OMB decision, and hasn’t considered the future of the former soundstages now that the mall proposal has been voted down.

The developer also ventured that the TFS site is not immediately usable as a film studio, and that restoring the soundstages for occupancy would be costly.

The last shoots at TFS included David Cronenberg’s A History of Violence and Marvel Entertainment’s The Incredible Hulk.

The OMB decision is also seen as a major win for Toronto Mayor David Miller. The mayor approved the 2004 application by TFS to build Filmport, only to see that development take 629 Eastern Avenue out of commission.

Meanwhile, Filmport is filling up as U.S. film and TV production in Toronto continues to recover. The latest tenant to sign is U.S. Attorney, a CBS/Paramount pilot being produced by Frank Siracusa. Hallmark is also on the lot for eight weeks to shoot the TV movie National Tree, with Susan Murdoch producing.