I too would not worry too much about it at first.
If it was farmland, crops were also grown on it. These products eventually ended up in our food (either directly, e.g., grain/potatoes, or indirectly through fodder plants). If the soil is so heavily contaminated, in my opinion, its products should not be used further processing.
I also think the municipality is just protecting itself. Ask the municipality if you can get the soil report, if it is available. Once you have the report, you just need to find someone to evaluate it. They will then be able to tell you whether the soil is fine, slightly problematic, or needs to be replaced. If no report is available, you know that it is generally only a precautionary statement.