
One thing that you need to do in Ontario if you are converting a development site to a more sensitive land use — so for example, taking a commercial site and converting it to residential — is file what's called a Record of Site Condition (RSC) with the Ministry of the Environment, Conservation and Parks (MECP). This is an important risk consideration because it's complicated, expensive, and it typically takes a long time; meaning it can delay an entire project or make it infeasible all together.
At a high level, here some things you should consider as a developer (though please keep in mind that I am not an environmental engineer and that you should obviously seek professional advice when dealing with environmental matters). If the site is clean and free from environmental contaminants, then the process is relatively straightforward. Complete your environmental investigations (i.e. drill boreholes) and then submit all your findings to the Ministry. Filing an RSC, in this scenario, should be fairly low risk.
Soil and groundwater contamination
However, things get a lot more complicated if you have environmental contamination, which is most often the case with urban sites. Developers usually assume a site is contaminated until proven otherwise. When you have contamination it can occur in two ways. You can have soil contamination and/or you can have groundwater contamination. The latter is worse for at least two reasons: (1) water, as you know, moves around and so it's harder to delineate and clean up and (2) it can expose you to additional liability if it's migrating off-site.
Point number two can be a serious risk and there's lots of case law out there that will tell you that. If you think you might be in this situation, you definitely want to do your homework and get some sound advice. But for the purposes of this post, you should just know that soil contamination is easier to deal with than groundwater contamination.
Two main approaches
Once you've established that you have a contaminated site and you know the actual contaminants and their concentrations, there are generally two main paths you can choose to ultimately reach a point where you can file an RSC with the Ministry. One, you can remediate the site, which means removing the contamination by physically taking it off site, doing injections, or by some other means. Or two, you can do what's called a "Risk Assessment."