I copied this from the formal City response:
Is The City responsible to pay the costs to remediate the creosote contamination on the West Village lands?
No. In 1997, a Release Agreement was signed between the Province and The City stating that Canada Creosote site contamination was not caused or contributed to by The City.
Interesting answer to their own posed question. Sounds like posturing for the province to pay for this. They could certainly try and get a potential buyer to pay for it, but there would no legal responsibility in that case, simply a negotiating point.
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