City asked to expand grant incentive

By James Tubb on March 26, 2024.

An expanded development grant in 2024 would provide grants to new residential unit construction in central Medicine Hat, while keeping potential tax offsets in place for larger infill and commercial projects throughout the city, council heard Monday.

A special committee of the whole heard economic developers are proposing $1.4 million be spent addressing housing affordability while supporting the long-standing city goal of driving investment to mature neighbourhoods.

Economic Development Medicine Hat director Selena McLean-Moore told council that $5.1 million was set aside for development incentives five years ago, and the new funds represent what hasn’t been allotted to date.

“It’s the allocation of the remaining funds,” she said.

“Analysis shows that we’re in different conditions than we were in 2019,” when the previous program, then called the waterfront vibrancy grant, was developed.

“We have a shortage of housing supply and that means housing prices are going up, whether you are buying or renting.”

If approved by council at subsequent meetings, one of two new programs would target new multiple-unit projects in the city centre, including apartments, townhouses, as well as row housing and tri-plexes. It would provide $15,000 per new dwelling unit, to a maximum of $750,000 at any single address, and depending on “remaining funds.”

Areas include the downtown, eastern parts of Riverside, the Southwest Hill (south of Gershaw Drive and along Division Avenue), Kingsway Avenue, Maple Avenue and the North River Flats.

A second would provide $7,500 to incentivize backyard suites in central existing communities. That is limited to downtown, Riverside, Harlow, River Heights, Kensington, the South Flats and River Flats, as well as the Southwest and Southeast Hill communities.

Large project grants would be awarded on a first-come, first-served basis.

Residential suites would see an intake period April 15 to May 15, with grant awards announced June 1 after an evaluation period, and subject to a development permit being applied for within 90 days.

City manager Ann Mitchell said the program will be analyzed and findings worked into budget proposals later this year.

“We’re working on a few initiatives that will be part of the 2025-26 development program, as well a land inventory,” said Mitchell.

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