{"id":507282,"date":"2026-03-01T11:46:25","date_gmt":"2026-03-01T11:46:25","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/507282\/"},"modified":"2026-03-01T11:46:25","modified_gmt":"2026-03-01T11:46:25","slug":"burnaby-mayor-raises-alarm-over-pause-on-1-8-billion-hospital-redevelopment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/507282\/","title":{"rendered":"Burnaby mayor raises alarm over pause on $1.8 billion hospital redevelopment"},"content":{"rendered":"

Burnaby Mayor Mike Hurley is raising serious concerns about delays to the second phase of the Burnaby Hospital redevelopment<\/a>, warning residents that the BC NDP-led provincial government\u2019s latest budget has left the city facing mounting uncertainty over critical healthcare expansion plans.<\/p>\n

In an open letter to residents today, Hurley highlighted that the second phase of the Burnaby Hospital and Cancer Care project has been delayed under the 2026 B.C. budget<\/a>, with no clear timeline for when construction will begin.<\/p>\n

\u201cFor Burnaby, this delay is deeply frustrating,\u201d wrote Hurley, noting residents were promised that the second phase would begin immediately after completion of Phase 1. Instead, the community has been left with replacement work completed in the first phase, but without certainty about when long-promised expansions will materialize.<\/p>\n

The\u00a0first phase of the hospital\u2019s redevelopment will reach completion later this year<\/a> at a cost of about $700 million, which is largely financed by the provincial government\u2019s internal sources\/borrowing.<\/p>\n

In the previous B.C. budget in 2025, it was noted that the second phase of the Burnaby Hospital redevelopment and the construction of a new BC Cancer Centre \u2014 complete with a new 160-bed inpatient tower, plus an oncology ambulatory care unit and chemotherapy and radiation therapy facilities \u2014 carried an estimated cost of $1.8 billion, with $1.771 billion also covered by internal sources\/borrowing. Construction was supposed to have begun in late 2025 for a completion in 2030.<\/p>\n

\"burnaby<\/p>\n

Construction progress on the first phase (Keith & Betty Beedie Pavilion) of the Burnaby Hospital redevelopment, as of April 1, 2024. (Kenneth Chan\/Daily Hive)<\/p>\n

The mayor emphasized the aging, small hospital serves not only Burnaby \u2014 the third-largest city in B.C. in terms of population \u2014 but also approximately 80,000 residents in East Vancouver who rely on its services.<\/p>\n

Burnaby\u2019s only hospital is located near its easternmost border with Vancouver, and serves the high-growth areas of Brentwood Town Centre and Metrotown.<\/p>\n

Hurley acknowledged broader economic pressures outlined in the provincial government\u2019s 2026 budget, which projects a $13.3 billion annual deficit<\/a>. Still, he said the delay represents a broken commitment to Burnaby residents.<\/p>\n

\u201cWe certainly understand that provincial revenues are not as projected and that financial pressures exist \u2014 everyone feels them \u2014 but this was a strong promise that has not been kept,\u201d wrote Hurley.<\/p>\n

The mayor also pointed to the impact on donors who contributed to the project in good faith, saying the pause erodes confidence in a redevelopment effort that had gained \u201creal momentum.\u201d<\/p>\n

Adding to the frustration, Hurley said there was no advance notice from the provincial government that the project for Fraser Health Authority might be delayed.<\/p>\n

\"burnaby<\/p>\n

Artistic rendering of the 2022 revised design of the first phase (Keith & Betty Beedie Pavilion) of the Burnaby Hospital redevelopment. (Burnaby Hospital Foundation\/Fraser Health Authority)<\/p>\n

\"burnaby<\/p>\n

2023 artistic rendering of the second phase (including the BC Cancer Centre) of the Burnaby Hospital redevelopment. (Burnaby Hospital Foundation\/Fraser Health Authority)<\/p>\n

In response to the budget announcement, the municipal government called an emergency meeting with local MLAs last week to seek clarity on the project\u2019s future. Hurley said Burnaby officials are now working to secure meetings with relevant provincial ministers to clarify plans and push for renewed commitment.<\/p>\n

The pause on the second phase of the Burnaby Hospital redevelopment is the largest and most expensive capital project to be put on hold under the provincial government\u2019s new pivot to pace its capital program, spreading out the costs of building new housing, facilities, and infrastructure over a longer period<\/a> to reduce the staggering growth in taxpayer-supported debt. Even with this slower approach, total provincial debt is currently forecast to approach a quarter trillion dollars before the end of this decade \u2014 fuelled by both capital projects that are going ahead as planned and significant annual operating deficits.<\/p>\n

Other projects impacted by this strategy to delay include a number of long-term care projects and reallocating about $1.4 billion that was previously set aside to support affordable housing projects<\/a>, including projects across B.C. that are under the provincial government\u2019s Community Housing Fund.<\/p>\n

\u201cProvincial support is especially critical and without it the actual construction of below market rental units and other affordable homes at scale is virtually impossible. Budget 2026 significantly reshapes that landscape. The Province has reallocated nearly $1.4\u202fbillion in housing investments across its fiscal plan and suspended the Community Housing Fund, the primary funding program that municipalities and non profits have relied on to build affordable rental housing,\u201d wrote the Mayor.<\/p>\n

\u201cThat fund helped deliver thousands of homes across the province, and while projects with existing funding commitments can continue, its pause leaves many projects in limbo and urgently needed new construction without a funding source.\u201d<\/p>\n

The provincial government\u2019s new budget also carries hints of budget and timeline changes for building the new replacement George Massey Tunnel<\/a>. It is supposed to begin construction in 2026.<\/p>\n

While the redevelopment of Burnaby Hospital is the most immediate concern, Hurley\u2019s letter frames the delay within a broader critique of provincial-municipal funding relationships.<\/p>\n

Municipal governments receive only about nine per cent of total taxes collected in their communities but face increasing responsibilities set by the provincial government, he wrote. Unlike the federal and provincial governments, municipalities are legally prohibited from running operating deficits.<\/p>\n

That constraint leaves the City of Burnaby with limited options: raising property taxes and user fees, cutting services, and\/or delaying infrastructure projects.<\/p>\n

Hurley\u2019s letter highlights growing tensions between municipal and provincial governments as cities grapple with infrastructure, housing, public safety, and childcare pressures under tightened provincial finances.<\/p>\n

Burnaby\u2019s municipal government has been among the most critical of the provincial government\u2019s housing-related legislation, which increases population through mandated additional density allowances. Over the years, the City has expressed concern over these measures for several reasons, including the lack of accompanying financial support and resources needed to build expanded community amenities, facilities, and other infrastructure to support growth.<\/p>\n

\u201cWe remain committed to working with our provincial partners through challenging times,\u201d wrote Hurley.<\/p>\n

\u201cBut Burnaby cannot meet growing expectations and the full needs of our growing community without stronger, sustained, and collaborative support from all orders of government.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Burnaby Mayor Mike Hurley is raising serious concerns about delays to the second phase of the Burnaby Hospital…\n","protected":false},"author":2,"featured_media":507283,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[49,48,84,392],"class_list":["post-507282","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-ca","tag-canada","tag-health","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/507282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=507282"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/507282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/507283"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=507282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=507282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=507282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}