The people of Orillia should call for an investigation into the deal that resulted in the city accepting contaminated land from Molson Canada, a city councillor says.

"There is a huge, dark cloud hanging over this project," Michael Fogarty said this week. "If there was a mistake made, that transfer agreement seems to be the biggest part of it."

The sprawling West Street site - donated to the city by Molson - was chosen as the home of a proposed recreation complex.

Fogarty in June attempted to have the entire project reviewed by an auditor general amid spiraling costs, but his request was rejected by a majority of council.

Municipalities can, however, appoint an ombudsman to investigate any concerns residents may have, he said. "Then it is in the public's hands," he added. "They could write to their ombudsman and get them to review (the transfer agreement)."

Coun. Maurice McMillan, too, believes the agreement deserves a second look.

"We signed on blind trust, I think they call it," he said. "We should look at it, if people want to. If it's a bad deal, it's a bad deal."

The transfer agreement, signed in December 2002, absolved the brewery of future responsibility for the West Street site, a former industrial property littered with vinyl chloride and other chemicals. A portion of that agreement reads as follows:

"Orillia shall accept transfer of the Park Lands in their present physical state, as is, and, in particular: (i) without any site-specific risk assessment for the protection of human and ecological health and of the natural environment; and (ii) without any restoration of the Park Lands to generic criteria."

The document acknowledges the existence of "certain environmental issues" and that "certain contaminants" are located on the property.

It notes the site was already subject to an Environment Ministry Order.

A study of the property conducted by consultants Shaheen and Peaker Ltd. on Molson's behalf - the first of many studies to come- was also provided to the municipality.

"The terms of the agreement have so bound the city to environmental liabilities - it is outrageous that anybody would sign this," said resident Lillian Marsden.

The city accepted the property from Molson "based on the studies that were available to us at the time," Mayor Ron Stevens said.

Mounting environmental costs have led others, including Fogarty, to question the wisdom of signing such an agreement. "Maybe we did do our due diligence," he added. "Maybe (the extent of the contamination) was a complete anomaly, but until we look at it, there will be that dark cloud."

Council recently approved close to $300,000 for the initial phase of a plan to address chemicals that migrated from the site to neighbouring properties. Consultants estimate that carrying out the full plan could cost up to $4.4 million over three years.

Stevens stressed that, as the owner of the property, the city has no choice but to address the off-site chemicals.

He was, however, heartened by a consultant's report indicating those underground chemicals appear to be breaking down naturally. "I was really pleased, absolutely," he added.

The MURF site is no "pig in a poke," contends Coun. Wayne Gardy.

"Yes, it is an industrial site, and it will have contamination on it," he added. "We knew we were going to have to do some remediation.

"But do we want all of our industrial land to sit unused because no one wants to take a chance on it? No. We have to move forward."

A review of the planned environmental work, presented last week to the province, was met with a positive response, said City Manager Ian Brown. "They were pleased to see the city was doing the off-site (work)," Brown said.

In addition to granting Molson pouring rights for any alcohol served in the facility, the agreement also gives the brewer power of approval over the project's design. Molson will be featured "prominently" in the facility's name, according to the agreement.

Were the city to sell the land within 10 years of the agreement, it would be forced to pay Molson half of the proceeds from the sale, minus any expenses already incurred by the city.