Submissions close next week on Progressive Enterprises' resource consent application to build a multimillion-dollar supermarket covering more than 4000sq m on Andersons Bay Rd on land containing some chemical contamination.
Progressive purchased the 1.1ha site, a former car yard bordering Andersons Bay Rd, early last year for an undisclosed sum.
During September Progressive undertook core sampling to check the ground for contaminants and to gather other geo-technical data.
An independent, publicly available report, included in Progressive's application, said more than 40 test pits, trenches and bore holes dug found several instances of contamination in fill material, with two finds of lead above human health guidelines and several others exceeding groundwater protection guidelines.
The site was occupied by the Dunedin gasworks from 1863 until its closure in 1987.
The report said the cheapest option was to do nothing, which would not allow for the supermarket to be built, and gave three other options: removing and disposing of the contaminated soil; treating it on site or taking mitigating effects such as having the building within a gas-proof membrane; or sealing the entire site with asphalt.
While only two human health guidelines were breached, there were more than 34 locations where levels of contaminants, including petroleum hydrocarbons, carcinogenic aromatic hydrocarbons and benzene, exceeded guidelines covering maintenance/excavation workers' exposure.
"The presence of contaminated soil will require significant health and safety controls during construction," the report said.
Similarly, groundwater protection guidelines were exceeded on several occasions, but the report said because the water was not used for drinking purposes, changes in it could be monitored by the Otago Regional Council during construction.
Asked yesterday which options Progressive was considering in relation to the contamination issue, Progressive's general manager for property, Adrian Walker, said he would be in a position to comment after submissions closed, as the company was "waiting for advice from [the Dunedin City] council".
Local industry sources have estimated that the total project could be worth more than $20 million, including an estimated $2 million to $3 million purchase price for the land.
One submission opposing the application has been received by council staff.
A hearing date is likely to be scheduled for late February or early March.
