Masterton District Council has had part of the former Masterton borough gasworks checked for contamination levels in anticipation of a sale to private buyers.
Residential use is ruled out, considering the history of the site, but contamination levels are low enough to not restrict commercial or industrial use.
The district council deferred a decision to sell the site on the corner of Pownall and Villa Streets late last year, until it can ensure the future safety of users.
It is understood there are several parties interested in the land, as well as a larger block not yet up for sale, and a decision on the small piece fronting Pownall Street is expected next month.
The proposal is to break off an 805sqm parcel of land away from the total 3.4hectares. The Pownall Street site is where the gasworks manager's house once stood.
The site also has access off Bentley Street and was established in 1907 when the town's original gasworks in Bannister Street could not meet the needs of the burgeoning town.
The Bentley Street gasworks operated until the early 1970s and the buildings and tanks were progressively demolished.
Despite the 30 years of closure, a scientific report written in September 2005 by Bruce Croucher, contamination and land scientist, showed that significant concentrations of contamination was still present.
The results of analytical testing of soil samples revealed that the majority of the site was "significantly contaminated" with he highest concentrations of contaminants - lead, cyanide and benzpyrene - found in the immediate vicinity of the main gas production area.
According to the report many of the samples exceeded the guideline values for residential land use and even industrial and commercial guidelines in a few instances.
Mr Croucher said that away from the main production areas the contamination was not as bad and had only affected surface soil, meaning only residential use could be banned.
However, in the council documents for the sale of the Pownall Street land, it is stated that residential use would not be permitted.
Amongst suggested uses is the construction of private storage sheds and an associated consultant's report says such a use would be appropriate.
The document points out that "the maintenance of ground cover is very important in the management of the contamination."
The proposed subdivision is located within the boundaries of the existing town and is zoned residential.
Former gasworks land being checked for sale
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