Old Post Office/Service Canada building to be torn down in Bracebridge

The soil and groundwater on the property is contaminated and remediation will impact parking in the area

Bracebridge Council received an update on the federal cleanup timeline for the contamination at 98 Manitoba Street during its April 15, 2026, meeting.

The update outlines the history of the site, environmental concerns, and next steps for remediation, and was presented through a joint report from the Town of Bracebridge and the District Municipality of Muskoka to Council for information.

According to the report, the property at 98 Manitoba Street, formerly home to a federal post office and Service Canada location, has been tied to municipal use. Since 1982, the Town has held a lease agreement with the federal government to use the surrounding lands as part of the downtown Library Parking Lot.

In 2012, the federal government declared the property surplus, prompting the Town to explore potential acquisition and redevelopment opportunities. However, environmental concerns emerged in 2018 when testing identified petroleum hydrocarbon compounds (PHCs) and related contaminants, including benzene, toluene, ethylbenzene, and xylene (BTEX), in both soil and groundwater. Some of these levels exceeded federal and provincial environmental quality guidelines, including impacts extending beyond the property boundary, adds the report.

In response, the Town and District engaged legal counsel and initiated a claim in 2020 to protect municipal interests related to any offsite contamination. Since then, both levels of government have continued working with federal representatives to better understand the scope of the issue and potential remediation options.

An update provided in March 2026 outlined the federal government's proposed remediation plan. Demolition of the existing building at 98 Manitoba Street is scheduled for summer 2026. Soil and groundwater remediation using thermal treatment technology is anticipated to follow between 2027 and 2028. Monitoring activities are expected to begin in 2029.

The report notes that while federal funding has been approved for remediation of the source area, it does not currently include offsite cleanup. However, officials indicated that addressing the primary source of contamination is expected to mitigate broader impacts.

The update forms part of ongoing discussions around the future use and redevelopment of the site, identified as a key priority in the Town's Downtown Master Plan.

Council inquired about the potential for additional community input, such as an engagement session for the chance to ask questions and share feedback, and whether there is a plan B for extra parking.

Staff said they would bring the suggestion of a public engagement session up with the federal government and indicated that there are other options for parking that are within “walking distance.”

They added that they can consider providing communication about these other parking routes “and work with the BIA to ensure downtown parking is visible.”

Mayor, Rick Maloney, inquired about site aesthetics and whether this is a consideration for the federal government.

Staff advised that “balancing safety with aesthetics” will be a part of their discussions with the government and could also consider options like the Town collaborating with the arts committee for beautification during the project, and maybe education initiatives regarding the technology being used.

Councillor, Debbie Vernon, inquired about extracting the hazardous material from the ground that could reach about 6 ½ feet and whether it travels and could impact other nearby infrastructure.

The Clerk described the technology being used in laymen’s terms… She said, “Picture a…it’s like a giant vacuum that is pulling in materials in and then sucking them out of the property,” and transporting it off the site.

Councillor, Archie Buie, inquired about whether the municipality can “put a hold on sites” with the federal government before they’re sold.

Staff advised that the federal government isn’t “obligated” to the Town’s requirements.

Further discussions included whether the Town could purchase the property after the project is completed, with staff confirming it as an option the federal government might be receptive to.