The federal government is looking to demolish the former post office building located at 98 Manitoba Street in Bracebridge due to contaminated soil.
During the April 15 council meeting, Lori McDonald, Director of Corporate Services, presented a report outlining plans to demolish the federally owned property this summer.
The report states that demolition will be followed by environmental cleanup of impacted soil and groundwater using thermal remediation technology, anticipated in 2027–2028. Monitoring activities are expected to begin in 2029.
According to the report, the federal government classified the property as surplus over a decade ago.
In 2018, the Town and the District Municipality of Muskoka received a third-party report from the federal government indicating the presence of petroleum hydrocarbon compounds in the soil and groundwater on the property. Some of these exceeded federal environmental quality guidelines and extended beyond the property.
The report indicates that in 2023, the Town confirmed to the federal government that it was not interested in acquiring the property, but that its future use and redevelopment is a key municipal priority requiring cooperation from the federal government, as identified in the Downtown Master Plan.
McDonald said in 2026, federal representatives attended a meeting in Bracebridge, during which they provided an update on the proposed remediation plans. However, the Town and District identified several key considerations for the federal government.
She said the key considerations range from infrastructure and site safety to the preservation of the historic Carnegie building.
The report also states that as a result of the contaminants, the Carnegie Renovation Project is under review by retained architectural and environmental consultants, who are taking into account the ongoing remediation activities at 98 Manitoba Street.
According to the report, the Carnegie building project is currently progressing through its design stages. Local officials anticipate issuing a tender this summer, with a contract award expected to follow shortly after. The project is on track to break ground in the fall of 2026, according to the current timeline.
McDonald said they are pushing for a dedicated federal liaison to keep the public informed and are demanding strict management of noise, odors, and construction staging to minimize the impact on local businesses and Manitoba Street traffic.
The report indicates costs incurred to date have been limited to fees associated with external legal counsel. It also states that staff cannot provide further details related to off-site migration of contaminants at this time due to the ongoing claim and solicitor-client privilege.
According to staff, the Town remains committed to working collaboratively with all relevant agencies to address and mitigate concerns where possible.
