Hydro lands eyed for huge development

London Hydro lands along the Thames River are seen in London, Ont. on Friday, June 21, 2013.

A downtown mega-project that could boost the local economy by hundreds of millions of dollars, could be on the horizon, CTV News has learned. And one of the biggest names in sports business is associated with it.

This news comes on the heels of a development blitz at city hall that has been divisive.

City councillors will learn about a proposal to develop the London Hydro lands by the Thames River next week.

The area and its redevelopment may be complicated by the fact that nobody knows how contaminated the soil is after about a century of use by London Hydro.

Some of those questions will be answered next week by Toronto investment firm, Kilmer Brownfield, whose chairperson is Larry Tannenbaum of Maple Leaf Sports and Entertainment.

A report from 2011 pegged the city's portion of clean up at up to $20 million, but Kilmer Brownfield has a solution. On its website it states: "The fund offers indemnification from site specific environmental liabilities,” meaning it assumes the environmental risk, then shares profits with the city when the value of the cleaned up property increases.

“They assume the risk, not the taxpayer,” says Coun. Joe Swan, who chairs council’s investment and economic prosperity committee.

“In the next two to three years, Londoners will once again be able to go down to the Fork of the Thames and really enjoy a clean safe environment.”

The project would see a mix of residential high rises, trendy stores and public space by the river.