Medicine Hat Approves Amazon Hub and Motel Housing Conversions

Medicine Hat City Council has approved an Amazon-contracted delivery hub at the former Ogilvie Flour Mill and residential rezonings for the Ranchmen Motel and Sun Dek Motel in Medicine Hat, Alberta. The hub would occupy an existing warehouse on a 2.77-hectare property, while the motel proposals would convert existing accommodation buildings to long-term housing.

CHAT News Today reported the decisions on October 6, 2026. For contractors and suppliers, the principal scopes are an interior logistics fit-out and residential conversion work rather than new buildings.

Council also deferred consideration of a separate rezoning for a proposed four-unit row house until October 19, 2026. That application remains distinct from the approved warehouse use and motel rezonings.

Key Project Facts

• Project types: Existing warehouse conversion to a package distribution and trans-shipment facility; two motel-to-residential conversions.
• Location: Medicine Hat, Alberta.
• Delivery hub address: 1222 Allowance Avenue S.E., at the former Ogilvie Flour Mill.
• Delivery hub property size: 2.77 hectares.
• Delivery hub scope: Interior renovations for sorting, staff amenities and logistics equipment, with no exterior heritage alterations planned.
• Ranchmen Motel address: 535 16th Street S.W.
• Ranchmen Motel scope: Renovation of existing motel units into self-contained residential suites with kitchens, bathrooms and living spaces.
• Sun Dek Motel address and size: 855 Gershaw Drive S.W.; two storeys.
• Stage: Council approved the delivery hub and rezoned both motels from Regional Commercial Special Use to Neighbourhood Residential 2.
• Related application: Consideration of rezoning at 22 Sierra Green S.W. for a proposed four-unit row house was postponed to October 19, 2026.

Warehouse Fit-Out on a 2.77-Hectare Property

The approved Amazon-contracted operation would use the existing warehouse at 1222 Allowance Avenue S.E. for package distribution and trans-shipment. Its service area would extend roughly a 30-minute drive from Medicine Hat.

The building work is limited to interior renovations supporting sorting operations, staff amenities and logistics equipment. Freight would be unloaded and sorted inside the warehouse, with no packages or inventory stored overnight.

The operating plan establishes several parameters relevant to the facility layout:

• Two 53-foot tractor-trailers would arrive each morning around 4 a.m. and depart around 5:30 a.m.
• About 25 delivery vans would operate from the site.
• Van dispatches would be staggered in 20-minute waves.
• The facility is expected to operate seven days a week.
• Regular access would use Tractor Avenue and Maple Avenue rather than Allowance Avenue S.E.

The property forms part of the former Ogilvie Flour Mill complex, which appears on the city's Heritage Inventory and Place of Interest List. No exterior heritage alterations are planned, keeping the stated renovation scope focused inside the existing building.

Planning staff identified early-morning engine idling, vehicle manoeuvring and cargo handling as potential noise concerns. The proposed operating arrangement limits that truck activity to two semis during a roughly 90-minute window, with unloading and sorting indoors.

Ranchmen and Sun Dek Motels Receive Residential Zoning

The Ranchmen Motel at 535 16th Street S.W. was rezoned from a Regional Commercial Special Use District to a Neighbourhood Residential 2 District. The proposed conversion would renovate existing motel units into self-contained suites incorporating kitchens, bathrooms and living spaces.

An applicant representative told council that the property already operates as an extended-stay facility, with some tenants having lived there for more than 10 years. The representative also said project financing had been approved and depended on residential zoning and the property's intended use for affordable housing.

The Sun Dek Motel at 855 Gershaw Drive S.W. received the same commercial-to-residential rezoning. The existing building is a two-storey motel proposed for long-term residential use.

Planning staff noted that both motel proposals are in an area where municipal policy generally discourages residential development because of its location within the West Employment Sector. Council nevertheless approved both rezonings, with staff citing policies supporting property reuse and infill development.

Existing Buildings Shape Renovation Planning

For the warehouse fit-out, the construction focus is adapting interior space to sorting, staff and logistics functions while retaining the exterior. Contractors assessing the work should distinguish that defined renovation scope from the operational requirements for truck unloading and van dispatch.

The Ranchmen proposal centres on converting motel accommodation into self-contained residential suites. Kitchens, bathrooms and living spaces could involve coordinated plumbing, electrical, ventilation, cabinetry and interior-finishing work.

The Ranchmen property's established extended-stay use also makes occupancy planning a relevant preconstruction consideration. Contractors should establish how access, service interruptions and work areas would be managed before developing a renovation sequence; an occupied-building construction sequence is not an approved scope item in the reported proposal.

For both motel properties, the October decisions are residential zoning approvals. Contractors evaluating these opportunities should track the conversion scopes separately rather than treating the two properties as an identical renovation package.

Four-Unit Row House Rezoning Returns October 19

Council postponed further consideration of the rezoning application for 22 Sierra Green S.W., in Saamis Heights Phase 7, until its October 19, 2026 meeting. The application would change the property from Neighbourhood Residential 1 to Neighbourhood Residential 2.

The applicant proposes consolidating the lot with a neighbouring parcel to pursue a four-unit row house facing Sunwood Crescent S.W. Planning staff said row housing is not permitted under the existing zoning but is allowed under the proposed district.

Rezoning would not itself authorize construction of the row house. A separate development permit application and review would still be required, making this a planning-stage opportunity rather than an approved construction project.

Construction Trades Involved

The approved warehouse use and motel rezonings could lead to interior renovation packages, with trade requirements dependent on each property's conversion scope.

Potential trades include:

• Selective interior demolition
• Interior framing and carpentry
• Drywall installation and finishing
• Interior insulation
• Mechanical systems alterations
• HVAC installation and modifications
• Plumbing
• Electrical distribution and wiring
• Interior lighting installation
• Fire alarm systems
• Fire protection systems
• Doors and hardware
• Cabinetry and millwork
• Countertop installation
• Flooring
• Tile installation
• Painting
• Logistics equipment installation

Frequently Asked Questions

Where will the Amazon-contracted delivery hub operate?

The facility is approved for an existing warehouse at 1222 Allowance Avenue S.E. in Medicine Hat, Alberta. The 2.77-hectare property is part of the former Ogilvie Flour Mill complex.

What renovations are proposed at the Ranchmen Motel?

The proposal would renovate existing motel units into self-contained residential suites with kitchens, bathrooms and living spaces. Council approved residential zoning for the property at 535 16th Street S.W.

Has council approved construction of the four-unit row house?

Council postponed consideration of the 22 Sierra Green S.W. rezoning until October 19, 2026. A separate development permit application and review would still be required for the proposed four-unit row house.

The warehouse and motel proposals give renovation contractors and interior-building suppliers distinct opportunities to track in Medicine Hat. The practical focus is on logistics fit-out work, residential suite conversions and the progression of each property beyond its current approval stage.

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