Soil experts tested the site after contaminated soil was found in a bore at the Pynsent Street end of the site.

The site once housed a petrol station.

A consultant was called in after workers noticed an odour coming from a bore hole. 

Horsham Rural City technical services director John Martin said the soil experts had given Kane Construction a verbal report on the findings.

“The test results are very encouraging,” he said.

“Preliminary reports show the problem was not as big as it appeared to be in the first instance.

“However, because a final written report hasn’t been received yet, we don’t want to pre-empt that report because things could change between now and then.”

He said Kane Construction would receive a more detailed report next week that would outline any action they would need to take.

The city council and Kane Constructions would be able to reprioritise work when more information came to light.

Councillors were updated on the project’s progress at a meeting on Monday.

Mr Martin said the detection of contaminated soil and wet weather had delayed progress.

Progress that had been completed included construction of half the bored piers for the foundations of the new building and plumbing installation for the new toilet area.

He said preparation had started for concrete slab construction in the location of the former supper room. 

Street lights had also been installed in Pynsent Street, as well as underground power mains, and power lines and poles had been removed.

Mr Martin said despite delays at the site, work was still being completed off-site.

Off-site work included shop drawings and fabrication of precast concrete panels and structural steelwork.

“When these items are completed, the steelwork and precast panels will be delivered to site for construction,” Mr Martin said.

“The highlight of the development is the work we can’t see – it is making really good progress.”

Mr Martin said it had been six months since council decided to proceed with the project.