(Tiffany Goodwein/ CHAT NEWS)

By Tiffany Goodwein

Hotel development on cursed city lot falls victim to spell

Sep 21, 2020 | 9:31 PM

MEDICINE HAT, AB- Plans to construct a boutique hotel on a notoriously cursed piece of city property have fallen through, and the city is now hoping to rework some magic and attract a new developer once again.

Mayor Ted Clugston confirmed that Clay District Developments officially pulled the plug on 603 First Street approximately two weeks ago.

“We have received a letter, an official letter from the developer backing out on that and of course, many factors. This has happened now 13 years it’s been tied up by various developers since I’ve been here,” Mayor Clugston said.

That land which currently acts as a parking lot has sat vacant since the late 1970s and was even the subject of a Supreme Court of Canada case involving former Mayor Ted Grimm.

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When asked the reason behind the developers backing out, Clugston cited the current economic crisis as a possible factor.

“Obviously COVID-19 it just became difficult to raise capital,” Clugston said.

Several proposals have been put forward over the years including plans by the now defunct Medican to construct an eight to nine-storey retail condo complex.

As for plans for the land now, Clugston said more details will be revealed to the public in two weeks. The lot is currently a direct control lot, meaning council has direct control over what is built on the land. The city’s municipal development plan currently proposes a riverfront development spanning from the Arena lands to city hall. The Mayor said it’s the city’s hope that whatever is built on 603 First Street helps facilitate the proposed riverfront district and that the land acts as a gateway to the city.

“My hope was always, the highest and best use, I believed was always that mixed use residential either hotel or condo that was always my hope, it’s getting to be after 42 years maybe that’s not going to happen. ” Clugston sad.

More details about the future of 603 First Street will be revealed at the next council meeting in two weeks