Update on Arena lands at 155 Ash Avenue SE

Medicine Hat – The Real Estate Purchase Contract between the City of Medicine Hat and Newrock Developments Inc. for the former Medicine Hat Arena property known as 155 Ash Avenue SE has expired and the parties have agreed to discontinue further negotiations.

Since the Real Estate Purchase Contract was signed in 2019, multiple factors have impacted the progress of the sale. While the parties worked to satisfy contract conditions, the City’s interests evolved as did key market-based success factors for Newrock. The City’s updated Municipal Development Plan released in 2020 prescribed a new outlook for downtown development with a focus on increased density. This vision led to a Council supported change in zoning to Mixed Use High Density for the property. While this zoning differed from what was in the original purchase agreement, it was a scenario that Newrock was open to exploring. Ultimately this rezoning – along with changes in market conditions challenged by inflationary pressures, rising interest rates and unproven market demand – made the feasibility of the development, dubbed the Alto on Ash Avenue, uncertain.

“Today is a different day than when the contract was first signed. The passage of time, changing economic conditions, and evolving long-term City interests have created a scenario where a reset is prudent,” said Rochelle Pancoast, Managing Director of Strategic Management and Analysis with the City of Medicine Hat. “Staff will revisit short-term options for the arena lands and the City would welcome Newrock and other interested parties to the table on any future proposals or marketing efforts related to the site.”

“Newrock is proud of the relationship we’ve cultivated with the City of Medicine Hat over the years,” said Kirk Wright, Chief Financial Officer with Newrock Developments Inc. “Though this particular arrangement didn’t work out as planned, we remain engaged on other projects with the City and are committed to a successful professional relationship.”

Both parties have agreed not to publicly discuss the specific terms and conditions of the agreement that existed prior to its expiry.

City staff expect to present a new proposal for the arena lands forward to Council through the Economic, Land and Strategic Planning and Development Committee by the second quarter of 2023.

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