The Ontario government has rejected funding for a new permanent supervised consumption site on York Street inside a former music store.

London secured federal approval for the site at 446 York St. in 2018 with the province dragging its heels on giving the green light for the facility.

In a written statement provided Monday, the Ministry of Health and Long-Term Care says the location is being contested at the municipal level.

"Zoning appeals have been filed in relation to the proposed CTS site at 446 York St. and these appeals are still underway," the statement read.

Dr. Chris Mackie, London's chief medical officer of health, said the funding application was for $1.3M.

He said the province will continue to fund the temporary overdose prevention site at 186 King St. and is encouraging the city to pursing its funding application for a mobile unit.

In an email to CBC News, a spokesperson for ministry confirmed that it has approved and is moving forward with funding for the site at 186 King St.

"The ministry understands that it is possible for that site to continue to operate until March 31, 2020 with a potential opportunity for a longer term lease," the spokesperson said.

Two years of work

Mackie said months of work went into identifying the York Street address, with input coming from neighbourhood groups, health care providers and people who use drugs.

"Our options now are to find an alternative source of funding for 446 York or try to find a new location. But this is after we spent the better part of two years looking for this location," Mackie said.

The London Police Services Board had also thrown its support behind the 446 York St. and 241 Simcoe St. endorsing them as part of an overall strategy to address "addiction, poverty, mental health and the opioid crisis."

The Simcoe location inside a Middlesex and London Housing Corporation building was earmarked as a second permanent site.

The provincial funding application has not yet been submitted for that location.

Temporary site statistics

The temporary site on King Street opened in February 2018.

There were more than 7,000 visits to the temporary overdose prevention site (now called consumption and treatment services) in its first six months of use, from February 2018 to August 2018.

Hydromorphone and crystal meth were the most commonly used substances at the site.