The rental vacany rate is extremely low, according to the City of Medicine Hat. (Vantage Point)

By Adrian St.Onge

NEW

‘0 to 1% vacancy rate’: Medicine Hat Economic Development rejigging incentives in the face of rental challenges

Jan 24, 2024 | 2:32 PM

Medicine Hat Economic Development, formerly known as Invest Medicine Hat, has focused on attracting and incentivizing businesses to invest in the city for years.

Regular incentives include tax relief for residential and industrial property development, but those incentives are being reviewed as part of a new three-year plan.

The changes are being put in effect towards the beginning of March.

Director Selena McLean-Moore said that they’re building on previous work, but that the incentive changes are meant to reflect current community needs.

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“One of the needs of the community is affordable housing and addressing our rental situation,” Mclean-Moore told CHAT News.

“We’re at a zero to one per cent vacancy rate and so we have to decide how we’re going to ensure that we grow that rental supply in order to be able to grow the economy.”

Plans include incentives for small businesses to fill jobs through immigration, increase the current rental supply and to work with other communities to identify and capitalize on regional strengths.

Mayor Linnsie Clark on Tuesday pointed to housing supply and affordability as the biggest issue facing Medicine Hat in 2024.

Staff are working on pre-approved building plans as one of the solutions.

READ MORE: Housing crisis the biggest issue facing Medicine Hat in 2024, mayor says in ‘state of the city’ address

If passed by council, the plans would allow homeowners to add spaces such as a garage or outbuilding in their backyards and potentially increase the rental market.

The city has applied to the federal $4-billion Housing Accelorator Fund and expects to hear a result in 2024.

A big part of the city’s approach is to remove barriers to getting housing up quick, Clark said.

The city is working on a new land use bylaw that will include new districts to ensure a variety of housing options in as many areas of Medicine Hat as possible.

“The current bylaw is limited to only a few types which will make it difficult to provide critical housing options like bathroom suites, secondary suites, attached housing and townhouses,” she said.

Meanwhile, the rebranded economic development team will work on improving the incentives.