The Township of Muskoka Lakes has been slapped with a $22 million lawsuit by the developers of the Legacy Cottages project in Minett.

Court documents allege the Township is in breach of contract, acted negligently and conspired against the developer to thwart development of the 43 unit resort property.

Site plan approval was granted by the Township just over a year ago, but Muskoka Lakes Council passed an interim control bylaw affecting the project in May. For now, construction on the site has been halted and a local planning appeal tribunal on the matter will be heard later this month.