Imperial Oil has agreed to pay for an environmental assessment of its old oil tank farm in downtown Charlottetown, the first necessary step to seeing the land redeveloped.

'What the environmental challenges are around the site is a key piece of information.'— Ron Waite, Charlottetown Area Development Corporation

The 4.5-hectare site at the foot of the Hillsborough Bridge held an oil tank farm for Imperial Oil for more than 50 years. An assessment done five years ago showed the land is contaminated with heavy metals and hydrocarbons.

"Having a clear understanding of what the environmental challenges are around the site is a key piece of information that's required for both parties to have a better understanding of what might be required to remediate the site into a different kind of use," Ron Waite, general manager of the Charlottetown Area Development Corporation, told CBC News Friday.

The City of Charlottetown and the CADC would like to see the land cleaned up and used. It's been suggested as a possible site for festivals and concerts, particularly as the Festival of Lights appears to be outgrowing Confederation Landing Park.

Imperial looking to sell land

The land has been discussed as a potential entertainment venue for more than a year. (CBC)

Imperial Oil spokesman John Harding said the company, the province, the City of Charlottetown and CADC recently signed a memorandum of understanding to start negotiating the future use of the land. The environmental assessment is part of that agreement.

"I think the assessment work will start, I would say, this spring, but it might be late winter," said Harding.

"I'm told doing that could take several months. It could be the fall before the information that's collected is analyzed properly."

Harding said Imperial Oil is interested in selling the property, but says it needs to know more before negotiations can begin in earnest.