Environmental contamination can persist for decades after a property has been polluted and move underground over large distances impacting large areas away from the original source. The impact of contamination can be minimal or very significant. Hazardous materials can seep through the soils and enter underground utilities, groundwater, wells and buildings causing fire, safety and health concerns. Furthermore, productivity of land can be impaired so much that animal and plant life can no longer be sustained. These types of problems have occurred in Saskatchewan.
Contaminated sites impact municipalities in many ways.
Sometimes, if the cost of remediation exceeds the value of the property, owners will quit paying taxes with the expectation that the municipality will not take action. In other cases, a property becomes abandoned when the business is closed due to the operation being unprofitable or to some other reason. In terms of redevelopment, potential tax revenue is lost if a property is even suspected of being contaminated because investors are wary because of fears of assuming liability for the site. The presence of contamination makes investors question the true value of a site. Municipal infrastructure such as water, sewer and utility lines may be directly impacted by contaminants and require costly repair or replacement.