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District grants Gravenhurst development on communal sewer services an extension

At their June 16 meeting, District councillors agreed to move forward with a two-year extension to allow Muskoka Bay-Condo II to continue to connect to private sewer services.

According to the planning report, the lands in question are approximately 1.53 hectares (4.52 acres) in
size with frontage on Carrick Trail, a privately owned and maintained road in the “urban” area of Gravenhurst. The lands were part of a larger lot intended to contain a phased condominium development consisting of two multi-residential buildings.

District planning staff said the applicant (Freed Developments) subsequently proposed that each of the two buildings be in separate ownership due to an impending sale to a third party.

The lands are currently being developed with a seven-storey residential condominium comprising a total of 88 residential units, a commercial unit, and associated common elements. The lands are located directly adjacent to Muskoka Standard Condominium Description 93, a five-storey multiple residential building containing a total of 168 units, currently serviced by a private sewer system.

The applicant was asking for another three-year extension to also temporarily connect the second building to the same private system, pending environmental studies.

The debate regarding the application was at times heated, particularly as councillors learned that the developer had already been granted a three-year extension in 2022 to connect to municipal sewer services. At the time, council adopted site-specific Muskoka Official Plan Amendment 54 (Muskoka Bay Condo II), “which allows the temporary connection to the adjacent private sewer services (force main and pump station) currently used by Muskoka Standard Condominium 93 [the first building], subject to conditions.” Those conditions included securities to “ensure the safe operation and maintenance of the private infrastructure and the requirement for the municipal sanitary sewer to be extended to the lands within three years of approval or by June 20, 2025.”

Because, to date, none of those conditions have been met, and staff was recommending the application be denied because it goes against Muskoka’s Official Plan when it comes to residential developments on private services, some councillors felt uncomfortable with yet another extension.

Councillor Peter Kelley said he is concerned that if the system fails, that risk would be transferred to the District and, consequently, the District ratepayers. “We can estimate to the best of our ability what that security needs might be. I guarantee you it would be under and it would cost us money if we have to complete it and it will cost us money if we have to complete it in what is a very changing market for residential condominium development,” he said, adding that he does not understand why councillors would move away from a well established Muskoka Official Plan policy.

“We do have a policy in place, but policies can be broken, that’s why they come to council,” said Councillor Bob Lacroix. He said given that the applicant will provide 100 per cent securities, he is in favour of the project, which is a significant development for the Town of Gravenhurst and the progress of the municipality.

“My concern is almost entirely financial,” said Councillor Guy Burry. “We have spent a lot of money as a council on various things and we’ve overspent and we’ve not budgeted terribly well in some of the things that we’ve done. I’m wondering if, because this is so important to the Town of Gravenhurst, if the Town of Gravenhurst would indemnify the District for any overages that go beyond the District so that we can save the taxpayers of the District…”

Councillor Heidi Lorenz said that the same request would then have to be made of all municipalities and projects in Muskoka.

“Every single fail-stop is in place here. Yes, we’re giving them some more time, but is the risk worth the reward, and in Gravenhurst, it is. It is worth the reward. It’s revenue, it is people coming into our community and shopping, it is jobs, and it’s all of these things, and we’re going to have the money to cover it; there’s no risk…,” said Lorenz.

In the end, council voted in favour of giving the applicant one year to enter into an agreement with the District and provide adequate security before connecting to the private sewer system. The applicant will then be given a two-year timeframe to complete the extension of municipal sanitary sewer services to the project and decommission the private infrastructure.

You can find the planning staff report HERE.

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