The public/private partnership aimed at creating an industrial subdivision in Bracebridge’s south end is facing some new obstacles as municipal approvals for the park continue to lag, driving up costs and threatening potential new investments in the project.

Almost two years have passed since the Town of Bracebridge first entered into a partnership with Fowler Construction to market 145 acres of land on the Muskoka River, north of Algonquin Automotive, for industrial uses.

Fowler is in the process of subdividing the lands to create 32 industrial blocks, varying in size from one to 10.5 acres. In order to assist the development, the town committed to providing up to $2 million to service the lands. Fowler is to repay the loan with interest, either through the sale of lots or following a sunset time frame of five years.

While the project was hoped to be well into the construction phase by now, its progress is being impeded by a longer than anticipated environmental impact study.

The study is assessing the effects of the project on the easterly portion of the Fowler lands, property that forms part of the South Muskoka Canyon Heritage Area. The area is identified by the Ministry of Natural Resources as being geologically significant and containing a number of species at risk.

Cheryl Kelley, town director of economic development, said the environmental impact study is only halfway done. Originally, the study was not anticipated to continue into the late spring/early summer.

Biologists, however, recommended studying the additional season to consider the development’s impact on birds and other species, indicated District of Muskoka planner Summer Valentine.

The study must be completed before Fowler’s plan of subdivision can be approved. The plan must be in place before the property can be serviced. The entire process could take up to another year to complete, Kelley confirmed.

In the meantime, some are expressing concerns that the slow pace is discouraging potential new investments in the project.

Fowler reportedly has several companies waiting to purchase lots at the property. It recently submitted an application to sever one of the lots to speed up the process for a particular buyer. The company is rumoured to create as many as 25 new jobs in town.

Kelley said the town is working with both the district and Fowler to ensure no new business is turned away.

“We want to see this project move forward . . . but there really aren’t any shortcuts,” said Kelley. “That’s the process you have to go through.”

Mayor Don Coates echoed Kelley’s sentiments.

“We’re looking forward to great things from that subdivision, but at the same time, we’ve got to protect the environment,” Coates said.

Still, both admitted the added approval time has taken a financial toll on the partnership.

In addition to inflationary cost increases, Fowler is facing a substantial cost to provide electricity to the lands. Because Lakeland Power has limited hydro capacity, the required expansion to the grid could cost Fowler anywhere from $500,000 to $1 million, Fowler co-owner Don Peart indicated.

“This is a great deterrent to development,” said Peart. The additional costs would likely be transferred to buyers, meaning Fowler must now reassess the economics of the project.

Kelley said the town, too, is investigating the cost factors and how best to assist Fowler with these challenges. Kelley said she will make a recommendation to town council in the coming weeks in regard to its commitment to the project.

“The math — from the private sector side — may have changed . . . (but) this is still a viable project from the town’s perspective,” said Kelley. “The whole goal was to create a variety of lots for light industrial uses, and that hasn’t changed. How we handle (the costs) is what we have to figure out.”

According to Valentine, the district is hoping to host a public meeting on the project by early June.

Fowler’s severance application, meanwhile, will appear before the town’s committee of adjustment April 30.