Medicine Hat Minute: Issue 206

Medicine Hat Minute - Your weekly one-minute summary of Medicine Hat politics

📅 This Week In Medicine Hat: 📅

• There will be a meeting of Council’s Committee of the Whole this afternoon at 6:30 pm. The Committee will receive the 2025 First Quarter Economic Development Report, which outlines activities by Medicine Hat Economic Development (MHED) across four strategic pillars: Business and Industry Development, Workforce Development, Investment Attraction, and Investment and Growth Readiness. MHED's activities include releasing the "State of the Industry - Air" report and hosting defence and aerospace roundtables to explore opportunities for industrial growth. Through the Rural Renewal Program, MHED issued 88 endorsement letters to foreign workers, supported by 126 employer consultations and 95 interviews. Financially, MHED secured external funding through the CanExport program to support investment attraction strategies in defence, agri-food, and energy. Additionally, MHED committed $1.845 million toward 10 housing projects under the Housing Infill & Redevelopment Incentive Program (HIRIP), which proposes 160 new units, and $200,000 to support 8 properties via the City Centre Vibrancy grant.
  
  
• The Committee will also review a report about the City’s financial reserves and how money from City-owned businesses is managed and distributed. The City maintains several reserve funds to cover expenses such as capital projects and unexpected costs, as well as to help keep taxes stable. These include an Operating Reserve used to smooth out budget ups and downs, a Capital Reserve from which about $50 million is spent each year on infrastructure and big projects, and a Medicine Hat Endowment Fund aiming to grow to $200 million to support the community long-term. Additionally, there are two special reserves: the Abandonment Obligations Reserve, funded initially with $75 million to cover future cleanup and retirement of city assets, and the Energy Transition Reserve, also seeded with $75 million, to support the City’s shift toward net-zero emissions. The City also receives money from its business units, such as utilities and land development, and this money is divided between supporting City operations and growing the reserves. However, the report highlights a financial challenge: on average, the City receives about $13 million annually from these business units, but it spends roughly $40 million each year from its reserves. Looking ahead, this gap raises concerns about the long-term sustainability of the City’s finances. If spending continues to outpace income, the reserves could shrink, reducing the City’s ability to fund major projects, respond to emergencies, and maintain stable tax rates.
  
  
• Finally, the Committee will review a third report - on the City’s new Land and Real Estate Strategy, developed to guide management of nearly 5,000 acres and 200 properties over the next five years. The Strategy aims to support residential, commercial, and industrial growth while balancing economic, social, and environmental priorities. Key findings include a projected shortfall of about 900 residential units by 2046, which can be met with currently zoned land; a commercial space gap of approximately 1.3 million square feet despite a current oversupply; a balanced industrial market with potential for future growth; and an ongoing office space oversupply expected to continue due to changes in work habits.
  
  
• After years of requests, Council has approved spending $250,000 for a design and costing study to address the deteriorating north grandstand at the Medicine Hat Exhibition and Stampede. The study will focus on the cheapest option, which involves demolishing the current grandstand and building a new one that meets modern standards, estimated to cost around $20 million. The proposed funding model includes the City covering half through a grant, the Alberta government contributing 40%, and the Stampede raising the rest, though some Council members expressed concern about the lack of a firm provincial commitment. Alternative plans that include expanded facilities and additional revenue-generating spaces were debated but not chosen, with some Councillors emphasizing the need for long-term benefits and infrastructure expansion. Critics questioned the Stampede’s financial preparedness and whether the organization had saved funds for maintenance. City staff will now proceed with detailed design work and report back with construction plans later this year, with a final funding decision likely near the upcoming municipal election.
  
  
• For the third consecutive meeting, Council delayed debate on whether to reimburse Mayor Linnsie Clark’s $76,000 legal bill. The costs stem from a judicial review she launched in response to sanctions imposed on her by Council in early 2024. Clark first raised the request in April, but then postponed it at two meetings in a row. She was absent from the most recent meeting on Tuesday, preventing discussion once again. However, Councillor Ramona Robins told Council that a detailed breakdown of legal costs from Clark has now been circulated. Robins moved that the matter be formally placed on the June 2nd agenda, giving Council a fixed date for debate. The motion passed unanimously.
  
  
• Prairie Rose Public Schools is advancing plans for the South Alberta School of Agriculture in partnership with Medicine Hat College and Cypress County. The initiative aims to blend high school and post-secondary learning through dual-credit agribusiness programs, offering students college-level instruction while still in secondary school. The proposed school will be located on county-leased land and feature classrooms, crop and livestock areas, and space for hands-on experiences with local professionals. Neubauer Farms, known for its work in Irvine, is playing a lead role. Stakeholders hope construction will begin during the 2025-2026 school year, with the first students welcomed in 2026-2027. The project still requires government approval, but Prairie Rose and Medicine Hat College leaders are optimistic.

🚨 This Week’s Action Item: 🚨

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