District of Muskoka Council allows a developer relief from the Muskoka Official Plan policy

Council allows delay despite recommendations from staff

The District of Muskoka Council allowed a developer to have temporary relief from the Muskoka Official Plan (MOP) policy, in the June 16, 2025, Council meeting.

According to the staff report, the applicant of the Muskoka Bay Condo II, a mixed-use development that includes 2 multi-residential buildings containing 89 units in Gravenhurst, requested an amendment from the MOP policy, “crucial land use planning documents,” to allow for continued use of communal sewer services for three more years.

Staff did not recommend Council approve the request because of concerns related to “environmental, financial, engineering, and legal risks associated with the continued use of private communal servicing where full municipal services are required,” adds the report.

Instead, they recommended that Council deny the amendment until municipal services were extended through the development of adjacent lands owned by the applicant.

However, staff provided Council with a second option that would allow the applicant to enter into an agreement with the District with additional timelines and requirements, including providing securities of 100% of the capital costs for the installation of sewer infrastructure needed, to alleviate financial risk to the municipality.

The report continues, “While provision of the agreement(s) and securities does alleviate the financial risk to the district for this particular development proposal, staff remain concerned with respect to policy and legislative requirements, precedent, and future phasing in and growth management in Muskoka’s urban centres.”

Council debated about the risks that would fall upon the District, and more specifically the taxpayers, should the development fall through, leaving the municipality responsible for ensuring residents have access to necessary services which “can be huge financial costs,” especially considering the project was already supposed to be finalized.

Councillor, Peter Kelley, suggested they deny the request, in favour of following the municipality’s Official Plan. He said, “We have a policy in place for a reason.”

Councillor, Robert Lacroix, indicated “policies can be broken.” He added, “This is a large project for the Town of Gravenhurst.”

Councillor, Rick Maloney, expressed frustration, indicating, “the developer didn’t keep moving forward with what he agreed to three years ago…. The nuts and bolts they agreed to wasn’t getting the attention.”

He added, “I’m not sure how big of a stick we need to move the developer forward.”

After much debate the majority vote was in favour of allowing the developer more time.

Manager of Planning, Curtis Syvret, said that the extension would allow the applicant one year to enter into an agreement and one year to install municipal services.