Issue

In 2016, the Chamber of Commerce adopted a policy resolution and recommendations based on concerns regarding the City’s proposed solution to the development of 603-1st Street and the restrictions placed on the property. At that time, any development became unattainable. With the current development shifting the property to a public-oriented use, it has created a gathering place for unwanted activity despite the past interest from private developers to invest in that property. 

Background

The property at 603-1st ST SE has sat vacant since 1978. Since then, it has been purchased at least once with the premise of having the property developed, and had several proposals from developers, but it has never progressed beyond the planning stage.¹ 

In 2011, Council identified the Glanville lot as one of the top five priorities for the City,² and in 2014 the City launched a request for proposal for the site, which included numerous conditions, including that the project be a multi-story project with both residential and commercial space, and include at least two levels of underground parking. While several proposals were tendered to the City, none were able to meet the City’s requirements without substantial direct or indirect subsidies from the City. 

As initial efforts to develop the property did not come to full realization, City Council authorized the City to move forward on the property with the intention of ensuring that it is a marquee project that represents the optimism and energy of the urban center³. The City then moved forward with the development of the site by funding the creation of a Development Concept. Additionally, a subsequent request for qualifications closed on January 21, 2016 seeking investors interested in participating in the financing, development, leasing, sales and ownership of a mixed-use development at 603 1st Street with the development constructed in accordance with the plans established by the City.

There has been a long-standing debate in Medicine Hat about how development should proceed on the City-owned 603-1st Street SE property. It has been acknowledged as a high priority for development, but significant restrictions have made it economically unviable for private developers. 

In 2021, the focus shifted from private development to a public-oriented project with federal funding to transform the property into a public-oriented space with parking, along with flexible community space that was intended to showcase entertainment, pop-up markets and community events. The city secured funding to transform the site into Towne Square, with limited beneficial results. With the transformation to a public-oriented space in 2021, there has been an increase in loitering and vandalism, noise complaints, transient activity and ongoing litter and waste management, raising concerns among some local business owners about safety and cleanliness and causing additional operational costs for the City to maintain the site. 

In 2015,the Chamber distributed an anonymous public survey, to which 320 people responded⁴. This survey found that 82% of respondents support the development of the 603 1st Street property in general, whereas 17% did not support the development. When asked who should develop the property, 91% preferred that private development should develop 603 1st Street, whereas 9% were opposed to private development. When the question was posed as to whether the City should be imposing additional design restrictions on a development at 603 1st Street in addition to those already regulated through the Land Use Bylaw and Downtown Redevelopment Plan, 17% stated Yes and 82% stated no. 

With rising concerns over 603 1st Street and the long-standing priority to develop that property, the Chamber once again recommends that the City list the property for sale and development be opened to private developers, so that City resources can cease to be expended on this project. The Chamber also recommends that the City work with private developers to allow for economically viable projects to be developed on the site. 

Recommendations

The Southeast AlbertaChamber of Commerce supports the development of 603 1st Street, and recommends that the City of Medicine Hat:

1. Allow private development to be the primary developer of that property in design, build and investment; 
2. Continue with the city centre vibrancy incentive program and create a more robust plan to spur development downtown, including derisking property prior to a sale and development of a property.
3. Halt further spending on the project and conduct further consultation with downtown businesses, industry, and developers to include discussion on other project options and uses for the property; 
4. Not proceed with any other development of 603 1st Street until it is economically viable by private industry to develop.

Resources

1. City Desk. "Key dates over the 36-year history of the city’s ownership of Glanville Lot." Medicine Hat News. July 2015. http://medicinehatnews.com/news/localnews/2015/07/29/key-dates-over-the-36-year-history-of-the-citys-ownership-of-glanvillelot/. 
2. City of Medicine Hat. "603 First Street SE, City of Medicine Hat - Qualifications Submittal RFQ No. LP15-146." Alberta Purchasing Connection. January 15, 2016. http://vendor.purchasingconnection.ca/Opportunity.aspx?Guid=6167F986-EA69-48BFA2AD-6EC96AB4AE80&. 
3. "Council Identifies Top Five Priorities for 2011." Medicine Hat Media. January 11, 2011. http://www.medicinehatmedia.com/2011/01/council-identifies-top-five-priorities-for-2011/. 
4. City of Medicine Hat. "Mayor's Informal Survey during the State of the City." Informal Survey, Medicine Hat, 2016. 
5. Medicine Hat & District Chamber of Commerce. "603 - 1st Street Development Survey." Survey, Medicine Hat, 2015.

Date Drafted: January 26, 2016

Date Reviewed: February 17, 2016

Date Approved: February 17, 2016

Date Completed: January 2017

Date Updated: June 21, 2025

Date Approved: September 17, 2025