CHAT News File Photo

By Alex McCuaig

Extended

Arena land deal set to close in July hits snag

May 22, 2020 | 4:48 PM

MEDICINE HAT, AB – A much-heralded land deal which would have seen the Medicine Hat Arena and surrounding land re-developed into a river-side housing development has hit a snag, CHAT News has learned.

Announced last July, the deal would have seen NewRock Developments take ownership of the Arena lands in a no-cash deal with the city. NewRock would have remediated the land and demolished the 50-year-old hockey barn while the city would provide tax incentives and spend up to $1.5 million to upgrade the streetscapes, roads and utilities.

The deal was to close on July 31 but has now been extended to the same date in 2021.

“Like many other businesses in the community, one of the things (NewRock) are finding right now is the market is very uncertain and very slow,” said Grant MacKay, director of land development with the city. “They are not able to do the feasibility studies and pre-marketing work they were hoping to do a the present time and the foreseeable and near future.”

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MacKay said another issue was the bids for the city tender for work around the Arena all came in over budget.

MacKay says the city and NewRock have been in close communication and hopes to see the conditions of the development met by this time next year.

The deal would have seen the city save continued operating expenses for the mothballed arena while NewRock would have absorbed the estimated multi-million dollar demolition cost to take the structure down.