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Unlocking the Potential of Underutilized Land in Medicine Hat

Unlocking the Potential of Underutilized Land in Medicine Hat

Municipal Policy

Municipal Policy

Issue Statement:

The City of Medicine Hat holds a substantial inventory of underutilized land—vacant lots, temporary parking areas, and parcels reserved for future use—that remains largely opaque to the public and potential developers. Despite repeated efforts to activate key sites, challenges such as unclear development costs, restrictive planning requirements, and limited transparency in the Expression of Interest (EOI) process have hindered broader engagement and investment. Without a clear, accessible inventory and development feasibility data, opportunities for revitalization, densification, and community-led innovation are missed, leaving valuable urban land idle and disconnected from the City’s strategic growth goals outlined in the Municipal Development Plan and Area Structure Plans.

Unlocking the value of underutilized land in Medicine Hat requires a shift toward transparency, strategic alignment, and community engagement. By publishing inventories, clarifying development costs, and streamlining the EOI process, the City can catalyze inclusive growth, reduce land stagnation, and support the vision outlined in the myMH Master Plan and related ASPs.

Background

The City of Medicine Hat holds a significant portfolio of land assets—over 5,000 acres and 200 unique properties with 3,860 acres of underutilized land analyzed in 2024. Many of these parcels remain vacant, underdeveloped, or temporarily used for parking or storage. While some are strategically held for future municipal needs (e.g., flood mitigation, school development, or contamination cleanup), others have been subject to repeated development attempts, such as the 603 First Street SE site, the arena lands and Primrose Drive, all of which have faced economic viability challenges.

The City’s Land and Real Estate Strategy (2025–2030) objectives include:

1. Remain flexible to market conditions while mitigating risks, establishing accountabilities and ensuring financial sustainability drives decision-making.

2. Empower decision-making and implementation at the level closest to the issue or challenge while remaining transparent.

3. Foster an adaptable and proactive policy environment, including the separation of policy and procedure through predictable outcomes

In order to provide greater transparency that would empower developers, community groups, and investors to identify opportunities and understand constraints, the City should release a publicly accessible inventory of all non-productive land parcels, fostering more inclusive and informed land use discussions.

The inventory should include:

  • Parcel location and size
  • Current use (vacant, parking, storage, etc.)
  • Status (available for sale, lease, or held for strategic reasons)
  • Reason for non-availability (e.g., environmental reserve, future infrastructure, contamination)

In addition, in order to allow developers the required information to make an investment decision, there should be greater transparency and access to the feasibility and constraints of underutilized properties. Publishing this information could broaden interest and reduce the perception that only a few parties are privy to development opportunities. The City should publish estimated development costs (e.g., remediation, servicing, infrastructure upgrades); known constraints (e.g., underground contamination, zoning requirements); required ASP/MDP alignment details and any incentives available (e.g., Brownfield Tax Incentive) in its requests for expressions of interest.

The City’s own surveys and stakeholder feedback have shown strong support for private-led development, provided it aligns with community goals and avoids excessive taxpayer burden. Therefore, the City should prioritize land disposition strategies that encourage mixed-use and higher-density development in urban nodes; support community-led initiatives (e.g., co-housing, cultural spaces); and leverage partnerships with private developers while minimizing public subsidies.

A more transparent, responsive and publicly available inventory and expression of interest process, including required information related to development costs and constraints, will encourage broader participation and reduce barriers for smaller developers or community organizations. The expression of interest process could be improved by publishing a summary of submitted EOIs and their status; providing feedback timelines and decision criteria and offering pre-application consultations for interested parties.

Recommendations:

  1. Publish a transparent inventory of all non-productive land in the City of Medicine Hat land bank, including all current and future urban development lands held by the City;
  2. Provide development cost estimates and requirements for underutilized parcels of land;
  3. Establish land disposition criteria in alignment with community and economic goals;
  4. Enhance the Expression of Interest (EOI) Process with transparent information, timelines, decision criteria and pre-application consultations.

Date Approved: September 17, 2025

Resources: Land & Real Estate Strategy 2025

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