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People eat lunch on the Vancouver Art Gallery steps in downtown Vancouver last year.DARRYL DYCK/The Canadian Press

The Vancouver Art Gallery says it is not going ahead with a planned design for its new home after construction costs soared by $200-million.

Vancouver Art Gallery CEO Anthony Kiendl also says in a written statement that it would no longer be working with the Swiss architectural firm Herzog & de Meuron, although it remains committed to building a new cultural hub that will “serve and inspire diverse audiences.”

Construction at the site of the new building in downtown Vancouver will be paused, just a few months after the gallery announced that the estimated cost surged from the original budget of $400-million to $600-million for the nine-level tower.

Mr. Kiendl says that his organization has been reassessing the project ever since, and “it has become clear” that the gallery needs a new way forward to meet its artistic mission and vision, and its practical needs.

The new art gallery was to be opened in 2028, and fundraising efforts raised more than $350-million for the project by August.

Officials had said that the first stage of pre-construction has been completed, and Mr. Kiendl says the gallery will reveal more details on its next steps “over the coming months.”

“Our goal is to create a building that embodies a diverse and inclusive artistic vision while ensuring financial sustainability within a fixed budget,” he says. “We recognize that inflation has put tremendous pressure on our plans, as it has done with many capital projects following the pandemic.

“At its last meeting, the board approved updated strategic priorities that will guide the gallery as we move forward,” the statement says.

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