A carcinogenic substance has been found following the demolition of an old scout hall at the Midlands Reserve in Ballarat North.
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In a statement issued on Friday afternoon, the City of Ballarat said benzo(a)pyrene had been discovered beneath the site.
A site remediation plan has been put in place, which will include the removal of the contaminated soil by a contractor, Enviroco.
The City of Ballarat said Enviroco were an EPA-licensed contractor who would "follow approved EPA processes to ensure that there is no impact to any surrounding areas or residents".
The work should start in the first week of the Easter school holidays.
The nearby Midlands Kindergarten and splash park - known as the Midlands Reserve Aquatic Play Space - are not believed to be affected, with tests in the area coming back negative.
However, the City of Ballarat said they were carrying out further tests as a precaution.
The hall was demolished in February.
The council's media statement read: "Following the demolition, shallow excavation works on the building site found a layer of fill material, presumed to be ash or cinders, located beneath a layer of compacted gravel.
"The City of Ballarat commissioned Enviroco Australia Pty Ltd to conduct soil tests to identify the extent of the material and any contamination."
"Families, staff and tenant groups at adjoining sites including Midlands Kindergarten, Ballarat Childcare Cooperative, Ballarat North Community Centre, as well as neighbouring properties, were informed today."
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Significant works are planned as part of the Midlands Reserve - Revitalisation Project, including a new community garden and orchard, more seats and trees as well as picnic shelters and walking circuits.
The Committee for Ballarat North had been pushing for improvements to the area for a number of years. Recently the City of Ballarat had awarded grants valued at around $280,000 for work to take place.
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