The price of building the new Vancouver Art Gallery has risen 50 per cent — from $400 million to $600 million — and the gallery’s CEO says some aspects of the project could be altered or scaled back.
In a statement, the gallery blamed rising construction costs, not just for its project but for all types of construction in Canada.
The statement said future work at the building site — which now sits more or less as a fenced-in hole in the ground at the corner of Cambie and West Georgia streets — will be “decreased” while design revisions are made.
“The gallery will be taking necessary steps for the next phase of the project that are pragmatic, creative and will ensure prudent financial management,” the gallery statement read.
“The gallery will continue to work on the project and raise funds for the completion, fit-out and ongoing operations of the new building.”
Gallery CEO Anthony Kiendl said there is now no firm timeline for the building, which was planned to open in 2028 and replace the current facility, a neo-classical courthouse built in 1906.
“Probably into the beginning of the new year, we won’t see much activity,” he said in a phone interview. “But through that, we’ll be developing the timeline and announcing that as soon as we have it.”
Steel, mechanical and electrical costs
Kiendl said gallery leaders are keeping tabs on the budget as the project progresses.
“The figures are really confirmed once you put it out to tender, then you get a real price,” Kiendl said.
“Everything right now is an estimate. And what we’ve seen in the sector across the country is the increase of cost of construction of up to 60 per cent over the last four years.”
The costs of steel, mechanical and electrical work are particularly high, he added. “So those are the big tickets that we can take a swing at first.”
Some naming rights for sale
Kiendl said the gallery is looking at “creative” ways to raise funds and cut costs. One example is a garden with naming rights for sale.
“I would like to reassure people that the gallery is committed to working within our means,” he said.
Kiendl was adamant the gallery would stick to its priorities when dealing with the higher costs: Indigenous reconciliation, net-zero emission construction, and education opportunities.
“It will create jobs, it will create tax revenue,” he said. “So this is not a bottomless pit. It’s not even an expense. It’s a net positive revenue generator for the tourist economy of British Columbia.”
Kiendl said of the $350 million raised so far, the majority has come from private donors or self-generated revenue. About 37 per cent has been government funding.
B.C.’s Tourism Ministry — which spent $50 million on the project in 2008 and another $50 million in 2022 in addition to millions in ongoing supports for the gallery since 2021 — acknowledged in a statement the growing cost of construction and the “incredible” progress fundraising for the new facility.
“Further provincial funding has not yet been considered at this time,” the statement read. “The province continues to work in partnership with the on securing further funding, including with federal and municipal partners.”
CBC requested comment from Heritage Canada — which kicked in $29 million in 2022 — but did not receive an immediate response.