MEDICINE HAT, AB — 603 First Street Southeast has been a problematic piece of land for the past thirty years.
It’s been called an eyesore, it’s been used for public parking, and it’s been the subject of failed private developments.
However, new purchasers of the property are determined to bring their vision to life.
Jay Hern and Aaron Burghardt decided to work together to develop the project after both expressing interest.
“Boutique hotel,” says Hern. “Vegas style, very catchy, very sleek, it’s going to be impressive.”
“We’ve got a really good team,” says Burghardt. “They’re very aware of these types of challenges so we’ll be prepared.”
Costly projects like ripping up foundation and hydrocarbon contamination under the lot have proved former projects unsuccessful.
At one point there were plans for the city to construct an apartment complex on the lot. The project was shelved by the city after the downturn hit and it was no longer deemed feasible.
“You could even argue the properties worth less than a dollar,” says Mayor Ted Clugston. “There was times we would say it was worth negative $500,000 because of all the work you had to put into it just to get it up to developable shape.”
In order to get the land sold for good, the city introduced the first incentive of its kind in Alberta, the Brownfield Tax Incentive.
It offers multi-year tax breaks for properties that are contaminated like 603 First Street.
Burghardt says the tax break is a good trade for the commitment he and Hern are committing to the property.
“We’re gonna step up, we’re gonna deal with it and the City and province has stepped up with the tax relief,” says Burghardt. “We’re showing commitment, we’re not asking for a handout, we’re going to do what needs to be done and we’re being supported after that. It’s a good trade.”
The plan is to build a 60 room, 60,000 sq. ft. boutique hotel on the west side of the property, with surface parking on the east side.
Hern emphasized a highly-designed exterior, catering to a high end demographic.
“We’re going to do probably a bar up top, it’s more for high-end clientele that come into the city or the Esplanade.”
Burghardt said there’s plans to create patio space on the edges of the building, with hopes of hosting events and lighting up the community.
In addition, they hope to work with surrounding businesses like the Beveridge Building, and Station Coffee.
“We believe the cities step forward to bring in growth and we want to step up to be a part of that and contribute to that,” says Burghardt.
One concern from residents, there’s currently 74 parking spaces on the lots, a mix of permit and two hour free.
The land sale officially closes on September 30, but the developers hope to allow parking on the lot until they break ground for the hotel.
When that will be is unknown.
“For me to say an exact date, I think I would be presumptuous,” says Burghardt. “It’ll be any time between late summer and next year, that I can state.”
