TOWN’S CONDO/RETAIL DEAL WITH ROSSEAU GROUP AT MUSKOKA WHARF HUNG ON LEGAL ADVICE
Mark Clairmont | MuskokaTODAY.com
GRAVENHURST — An 11th hour deal announced may yet allow a major condo/retail development to proceed a step further here at the Muskoka Wharf as it was last proposed in August when it was rejected by council in a tie vote over waterfront woes.
After turning down the proposal in late August, the Town of Gravenhurst and The Rosseau Group have come to terms on a “settlement agreement” that is still going to the Ontario Land Tribunal next week on just how to proceed with the applicant’s appeal.
A case management conference remains scheduled for Wednesday at 9 a.m. January 24.
But it’s unlikely the scheduled day-long conference will once and for all settle the controversial years-long Lake Muskoka waterfront proposal.
If the former Ontario Municipal Board (OMB) eventually agrees, a seven-storey condo building with 151 units, underground parking, retail and one- and two-storey boathouses could still be built next to the Segwun and Wenonah II cruise ships.
No restaurant — but a rooftop pool overlooking Lake Muskoka.
The town approved a motion in an unrecorded vote at yesterday afternoon’s January 16 council meeting to approve the settlement — or potentially lose a costly battle at the OLT.
According to the council agenda, at 2:15 p.m. — 45 minutes before the 3 p.m. council meeting in the Terry Fox Auditorium — council went into closed session for what was described as “Litigation/Potential Litigation, Solicitor/Client Privilege: re: Planning Matter — Appeals.”
The agenda included a report from that closed session: “Minutes of Settlement for OPA 01-2022 and ZA 11-2022 TRG (Cherokee Holdings) — ‘The Starboard,’ Cherokee Lane.”
Attachment – OLT-23-000986 Minutes of Settlement – Jan 2024
The recommendation was: “BE IT RESOLVED THAT the Minutes of Settlement for OPA 01-2022 and ZA 11-2022 TRG (Cherokee Holdings) — ‘The Starboard,’ Cherokee Lane be approved subject to the inclusion of a the (sic) inclusion of a standard ‘no cost’ clause;
“AND THAT Council direct legal counsel to execute the Minutes of Settlement.”
Town CAO Scott Lucas confirmed to TODAY.com that “the context of the closed session was litigation, yes.”
Closed sessions aren’t public, said Lucas.
“Generally most of the conversation is confidential as far as litigation goes. But it’s not uncommon, once an appeal comes in, for conversations to start about whether there’s opportunities to settle the matter. And council needs to give some consideration to what the implications are of defending the original decision might be.”
He said as staff had recommended the most recent amended summer proposal, the town would have to hire “external experts” to defend four councillors’ rejection.
“At the end of the day council has to be comfortable that the decision is defensible and if it’s not what the implications of that might be.
“I don’t know that the Tribunal would consider approval of minutes of settlement next week,” said Lucas. “But really the Case Management is typically about setting the stage and figuring out the logistics of what the hearing might be and what it might look like.”
He couldn’t estimate the ballpark cost of going to a full-blown hearing, which could take a week or two versus a settlement hearing.
“There are so many variables, I couldn’t forecast.
“It’s just about gathering everyone who has expressed an interest legislatively through the process.
“And then it will obviously be news to the Tribunal that we’ve reached a settlement.”
He said: “There’s no pre-emptive back and forth. Not to say that minutes of the settlement can’t be forwarded to the Tribunal beforehand, but there isn’t time for back and forth in advance.”
The case conference manager is Ben Bath (replacing Kayla Ansell), the “go-to as far as management of the file and helping people through the process. She’s not the Tribunal member that will be handling the decision.”
Lucas said “ultimately the decision was to settle on the latest concept that was put forward by the Rosseau Group” at the end of August 2023 at a public meeting, which drew a large attendance in the town council chamber.
He said while “it’s possible” a final decision could come out of next week’s public Tribunal meeting, “they’ll also have to consider any other interested parties and what their intentions might be outside those that might have settled on it.”
A call for comment from the Muskoka Lakes Association (MLA), which has offered a lot of opposition to the project, was unreturned.
Lucas said TRG appealed to the OLT September 13 and in the intervening months further discussions have taken place with the town.
Indeed, Denise Baker TRG’s legal counsel at WeirFoulds, said in a mail-out in November that the possibility of a settlement or mediation was to be considered.
Lucas said that with that “in play” — as always in such planning matters — no firm OLT case management conference had been set until now that a settlement has come about.
Regarding the rejection on grounds of water safety, he said the “only conversation around it really occurred around the decision last night. So that’s the public discussion — which really wasn’t much of one — was just to consider the minutes of settlement.
“I couldn’t detail exactly what each member of council had in mind as far as comfort level that those issues had been resolved. (The meeting is available to view online on the town’s website.)
“I know staff felt there weren’t any matters that hadn’t been covered off in the process, even before the decision had been made in August.”
The latest town staff report says “should the OLT not approve the settlement, the parties agree to make reasonable best efforts to continue to negotiate with one another to resolve the appeal.”
Lucas said even if the Tribunal gives the proposal the green light any construction of the multi-faceted years-long development still premature.
It’s not a spring shovel in the ground project.
“It tends to take a little bit of time,” added Lucas. “Even if things are sorted out. It can still take time. And it could still take a few different” turns.
An earlier town release had said: “Based on a variety of considerations (e.g. legal advice, financial implications, policy compliance), council agreed to enter into a settlement agreement with the developer that would allow the project to proceed as previously amended.
“This proposal will result in mixed-use development in our serviced settlement area,” Mayor Heidi Lorenz said. “In our Official Plan, the land has been identified for intensification and growth for several years, and this was reiterated in our recent Wharf Revitalization Plan. This project will round out the existing development in the area and will contribute to the overall economic health of our community.”
An attempt to reach a Rosseau Group spokesperson was unsuccessful
See previous MuskokaTODAY.com story here on council’s original rejection.
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