An Ottawa development company has reached an agreement to buy and transform waterfront property that once housed the Domtar paper mill.

Windmill Development Group announced late Wednesday they have reached an agreement to purchase Domtar’s property on Ottawa’s Albert and Chaudière Islands and downtown Gatineau.

Windmill has said it wants to create a sustainable, mixed-use community on the 37-acre parcel of land.

The site's unique position on the water and at the provincial border — with close proximity to the downtown core, bike paths and tourist attractions like the Canadian War Museum and Victoria Island — make the area a potentially attractive piece of real estate.

But the area is tricky for development because it borders parcels of land owned by Hydro Quebec, the National Capital Commission, Public Works and the cities of Ottawa and Gatineau.

Domtar closed buildings in 2007

It also has historical buildings and, because of its industrial past, land in need of remediation. Most of the industrial buildings on the island have been empty since Domtar closed in 2007.

The area is also part of an Algonquin land claim. A deal between the NCC and Domtar to purchase the land fell through 18 months ago.

Windmill said it consulted widely with both Ottawa and Gatineau, the NCC and the federal government, the Algonquin people and local ecology groups.

Financial terms of the agreement have not been released.

Windmill will hold its first public consultation on the project on Dec. 11, at the Canadian Museum of Civilization.