You are exactly right, Tom. The railway itself was on the property that is now the park, but the whole area was considered "railway lands."
There is presently a lot of pressure to develop that land, and a lot of resistance from the people who live here and enjoy that park, beach and harbour. Their main adversary seems to be the Town itself, which is really unbelievable. The parkland was deeded to the Town almost 100 years ago, as public parkland forever. Some politicians lately have suggested the park would be better used for condos.
Here, we are looking south across the harbour from the parking lot in the Google pic, and where i-WERKS shot his pics. This is in the late 1800s. You can see the railcars on the wharf, just beyond where you parked your bike. The ice house is in the background. On the right is the sawmill, which was later Grew Boats, then Bonnie Boats. I'm pretty sure it's the same structure that's still there, awaiting demolition. Your parking spot is just behind it.
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