The canopy of the Towne Square development is seen on Friday. The project has received at $750,000 grant from the federal government, City of Medicine Hat officials announced Monday.--News Photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
A budget overrun at the Towne Square project will be cut in half by a new federal grant, which administrators say was on the way when they were grilled about the project in January.
Major construction is complete to revamp the parking lot across from city hall into a flexible space to host festivals and an open market, and officials are now preparing a rental plan and summer schedule.
On Monday, the city announced it will receive $750,000 for the project from the Canada Community Revitalization Fund, administered by Prairies Economic Diversification.
That brings total grant funding for the project to $2.75 million.
“This funding will be used to support the transformation of the basic parking lot to an innovative and inclusive community space,” said Invest Medicine Hat head Eric Van Enk in a statement. “With this additional contribution, the project has been almost entirely funded by federal and provincial grant dollars.”
Mayor Linnsie Clark said additional funding is “always welcome”
“The Towne Square project has generated a lot of conversation in our community,” she said. “We look forward to collaborating with our stakeholders to build on their existing successes and bring this new space to life.”
Council members in January quizzed administrators over the budget and changes to the scope of the project, while planners and officials defended overruns as a result of supply chain shortages and a short turnaround time to design and complete the project to take advantage of federal grants.
The city was approved for a $2-million federal COVID stimulus grants, but the contract for general construction and the cleanup of decades-old contamination was awarded for $2.5 million in the summer of 2021. Another $360,000 was added when nearby municipal works upgrades were coupled with the budget that eventually rose to $3.5 million.
That includes a repayable loan between the city’s land department and asset management office to be paid off with rental income at the site.
Contractor LMT announced Monday on social media that after laying thousands of paving stones on the site of the one-time car lot, only “finishing touches” are required.
City officials say they will allow free parking on the site until May 1, by which time a schedule of summer events should be available.
The Canada Communities Revitalization Fund is a two-year, $500-million program offered by Ottawa to promote city centres, public spaces, green infrastructure and job creation. Applications were due last June.
