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The MLA has learned deeply troubling details of a massive development proposal for Muskoka Bay (with condos and two restaurants to be built over the lake, as well as two hotels and a marina) which doesn't comply with numerous planning requirements. We invite anyone with questions or concerns to make their voices heard at an upcoming information session on May 27, 2025.
 
The Province (Infrastructure Ontario) has entered into an agreement to sell the 33 hectare (81.5 acre) former Muskoka Regional Centre/sanatorium lands located in Muskoka Bay, at the south end of Lake Muskoka, together with the lakebed, to a developer (Cliff Bay Muskoka Corp. of the KS Group of Companies, which appear to be based in New Jersey with Kirill Soloviev as Chief Executive Officer).

The property is currently zoned primarily Institutional, with some Open Space. It is proposed to rezone it to primarily Commercial (mostly Tourist Establishment (Resort), with some Residential and Open Space) pursuant to a Ministerial Zoning Order (MZO). The MZO process replaces the municipal zoning and official plan amendment processes, such that the Town of Gravenhurst and the District of Muskoka will have no say in the planning decisions for these lands.
 
The developer will be hosting a public information session on Tuesday, May 27, 2025  commencing at 7 PM by Zoom link  [Meeting ID: 816 5896 8151 / Passcode: 7gMjGf] to provide an overview of the proposed development and to receive comments from the public. The link to the materials provided by the developer can be found here.

Two hotels are being proposed, with “branded residences” associated with the hotels. Based on our experience, we expect these will be resort commercial condominium units sold to individual purchasers.
 
There are numerous examples where the proposed development does not comply with official plan and zoning requirements, many of which are deeply concerning:
 

  1. Water villas (cottages/units) to be built over the lake. Primary building permitted to extend up to 15 m (49’) from the shore over water; dock permitted to extend up to 20 m (66’). The Province and the District of Muskoka prohibit habitable space in the floodplain.
  2. Two restaurants to be built over the lake. One restaurant is permitted to extend up to 35 m (115’) from the shoreline and the other is permitted to extend up to 65 m (213’) from the shoreline. Again, the Province and the District of Muskoka prohibit habitable space in the floodplain.
  3. Based on our interpretation of the Gravenhurst zoning by-law, a minimum setback of 30 m (98’) from the shoreline is required. Proposed setbacks range from 7.5 m (25’), 20 m (66’), 25 m (82’) and 30 m (98’).
  4. The number of units/density permitted has not been clearly specified. We understand there may be up to 1,200 units permitted.
  5. According to the Gravenhurst zoning by-law, the permitted height is up to 10.5 m (34.5’). Proposed height is up to six storeys, which may be up to 25 m (82’) or more.
  6. An 80 m (262’) pier is proposed. Maximum permitted dock length from the shoreline is 15 m (49’).                                                                                  

In addition, a marina is proposed. We understand it may have up to 88 boat slips. Two beaches are also proposed to be created.
 
If the development proceeds as proposed, it will fundamentally change the character of the area.
 
Of greatest concern are the units and two restaurants to be built over the lake. If you share these concerns, we urge you to attend the public open house session being hosted by the developer to make them known.
 
MLA representatives will be in attendance. If you know of others who may be interested in this issue, please forward this email to them.


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