Huntsville moves to transfer Florence Street land to not for profit

The land valued at $1.5 million will be partly used for affordable housing

Huntsville General Committee received an update on the Muskoka Community Land Trust's (MCLT) proposed acquisition of municipal lands at 40 Florence Street West at its June 24, 2026, meeting.

Staff reported that a Letter of Intent (LOI) has been finalized to facilitate the transfer of the lands to the MCLT, while protecting the Town's interests.

The agreement includes provisions requiring the development to proceed in accordance with approved plans, implement recommendations from technical studies and ensure that at least 40 per cent of the project's 150 permitted residential units are affordable housing.

The report adds that before the transfer can proceed, several outstanding matters must be resolved, including confirmation of water and sanitary sewer capacity, approval of final stormwater management and servicing plans, and completion of title matters.

Staff also noted that ownership of an adjacent parcel remains with the District Municipality of Muskoka and discussions are underway to resolve the discrepancy.

They stated that the Town has obtained an appraisal valuing the lands at $1.5 million.

Easements will also be registered to preserve access to the existing communication tower and the District's pump station.

Staff are awaiting a response from Bell before determining whether the communication tower will need to remain on the site.

Director of Development Services, Kirstin Maxwell, explained, “We are able to transfer the lands as it stands now and maintain access for the tower for maintenance. And then when it’s been determined whether or not we need to move the tower or if we can co-locate on an adjacent tower instead that gives us the flexibility there with the land trust.”

The first phase of the proposed development would include a four-storey building with 46 residential units. Building permit and Community Planning Permit fees for the project have been waived, while development charges do not apply because the proponent is a not-for-profit corporation.

Once outstanding legal matters, easements and restrictive covenants are finalized, ownership of the lands will be transferred to MCLT.

Legal costs associated with the project are expected to be funded through the Town's Municipal Accommodation Tax reserve.

Councillor, Scott Morrison, expressed appreciation to staff and the District and the progress they’ve made. He said, “Really exciting news. We’ve secured a significant portion of financing for us, so when we get through all these hurdles we’re finally going to b where we need to be.”