Update on massive development proposed for the Muskoka Regional Center/Sanatorium lands, south Lake Muskoka - July 2025

The MLA is deeply troubled by the plans for a massive development proposed for Muskoka Bay, south Lake Muskoka. The Province has entered into a conditional purchase and sale agreement to sell the Muskoka Regional Centre lands to a developer, Cliff Bay Muskoka Corp. of the KS Group of Companies.

The proposal includes up to three hotels, almost 1,400 units (many of which can apparently be residential condominiums), two one- and two-storey restaurants over the water/in the lake, 33 units in the lake and up to 10 six-storey buildings.

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 development in the floodplain (with the exception of docks and boathouses).
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 two storey restaurant is permitted to extend up to 65 m (213’) from the shoreline. Again, the Province and the District of Muskoka prohibit development 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 close to 1,400 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’). 
7. In addition, a marina is proposed. We understand it may have up to 80 boat slips. Two beaches are also proposed to be created.

The MLA is very concerned the proposal is not in keeping with the character of the area and will negatively impact the environment. Especially concerning are the restaurants and cottages proposed to be built in Lake Muskoka. As currently proposed, it is unlikely the development will result in the promised permanent local jobs, especially if the project turns out to be primarily a residential subdivision on the waterfront at commercial densities.

The property is currently zoned primarily Institutional. It is proposed to rezone it to primarily Commercial (mostly Tourist Establishment (Resort), with some Residential and Open Space).  One condition the developer included in the purchase agreement is a Minister’s Zoning Order (MZO), which fast tracks the development by removing planning decisions from the local municipalities (Town of Gravenhurst and District of Muskoka).

In a letter to the Province, the MLA urged the Province not to approve the developer drafted MZO in its current form, but rather scale back the proposed development to conform more closely to the Town of Gravenhurst’s Official Plan policies for Urban Resorts and the Town's Comprehensive Zoning By-law as well as the District of Muskoka’s Resorts Policies.

An MLA representative met with our local MPP, Graydon Smith, to express our concerns. We also sent a letter to the Premier and other government ministers linked here: Cliff Bay Letter to the Premier & Minister Flack. Our association continues to work closely with the Muskoka Bay Property Owners Association and the Sunset Bay Cottagers Association on this (having recently attended their AGMs).

Make your voice heard

To express your concerns about this MZO we suggest you consider sending a letter to the Minister of Municipal Affairs and Housing, Rob Flack minister.mah@ontario.ca and the Minister of Infrastructure, Kinga Surma minister.moi@ontario.ca. To sign a letter of opposition to the MZO drafted by the developer, please click on this link: https://mailchi.mp/35bb5816ff2c/tml-support-op-sign-on

You can also sign the petition a local neighbour, Bruce Parlette, has started and which has over 2,000 signatures. You can sign the petition here: https://chng.it/6QRzngtNhQ and read the website here SaveTheBay.ca.  Please share this information with anyone you know who may be concerned.

The developer’s attempt to hold a public information session on May 27 failed, as it used a basic Zoom account which allowed only 100 participants, when it knew many hundreds of people wanted to participate. The rescheduled session was held on Wednesday, July 16, 2025. You may read more information about the developer's presentation and plans on their website at https://cliff-bay.ca/projects/