The Township of Muskoka Lakes brought an application for judicial review to stop the Ministry of Natural Resources from leasing Crown lands to Swift River Energy Limited for the construction of a hydro-electric facility.
The Township argued that the Ministry's decision to issue a Notice under s. 28 of the Public Lands Act prohibiting public access to the lands was unreasonable and an attempt to thwart portage and public access rights.
The Divisional Court dismissed the application, finding that the Ministry's decision was reasonable given the public safety concerns associated with the site, where two drownings had previously occurred.
The court also noted that a lease of Crown lands does not constitute a disposition under s. 65(4) of the Act.
