Granville Island needs over $250 million in repairs as it prepares for change | Daily Hive

Granville Island's entrance sign. (Kenneth Chan)

Granville Island needs more than $250 million to catch up on long overdue repairs, and the leader of the federal agency that oversees its operations and maintenance says major changes in direction will be necessary to secure the future of one of Vancouver’s best-known destinations.

Beyond that backlog, CMHC Granville Island — the local division of Canada Mortgage and Housing Corporation (CMHC) that oversees the island — estimates that it needs another $10 million in annual net operating revenue to become financially self-sufficient over the long term. Its existing annual operating revenue sources cover everyday operations, but cannot pay for the very extensive work needed on its aging buildings and infrastructure.

Those financial pressures were outlined at a public open house on Wednesday, Oct. 28, as Granville Island kicks off a public consultation process asking residents, visitors, and businesses what they want protected and how the destination should evolve.

In an interview with Daily Hive Urbanized during the open house, Tom Lancaster, the general manager of CMHC Granville Island, said this consultation is intended to help people understand why changes are needed and give them a say in what happens.

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“There will have to be some change, but we’re doing our best to steer that in the best possible way. And actually the future is looking really positive,” said Lancaster.

“We’re approaching 50 years. Now we’re looking at what the next 50 years is.”

There are three broad options to address the financial shortfall: substantially increase the island’s revenue-generating capacity, secure new government contributions, or provide fewer amenities and services.

Those options remain under consideration, but the intent is to protect Granville Island’s character for the decisions ahead.

CMHC has operated Granville Island on behalf of the federal government since the 1970s, when extensive public investments were made to transform the heavy industrial area into an arts and cultural district — eventually becoming one of Vancouver’s most popular tourist attractions. Many of the buildings that exist today were industrial buildings originally built early in the last century.

The agency supports its daily operations through income generated on the island, including rents paid by tenants, without ongoing government funding.

That money serves several purposes. Alongside building upkeep, it helps pay for public spaces, free events, and support for arts and cultural organizations, including keeping rents low for local artists.

Free public amenities such as the outdoor waterpark and tennis courts also draw from those revenues. Moreover, although it is technically on federal land, Granville Island pays the City of Vancouver more than $2 million annually in taxes, while covering the costs of its own public amenities.

The difficulty is that this funding arrangement was never set up to cover major rebuilding and renewal. CMHC Granville Island emphasizes that it does not have the same ability as a municipal government or private business to borrow money or set aside funds for major projects.

Lancaster said the financial challenge extends beyond repairs that have already been put off. There are also present and future maintenance needs, along with the cost of new construction.

“It’s been 50 years since the renovations, and nothing lasts forever. It really doesn’t,” he said.

The condition of some properties is already affecting how much of the island can be used.

Some spaces have stayed empty because the repairs required would cost more than what most small, local businesses could afford under typical leases.

Several large buildings are also vacant following the departure of former anchor tenants, especially the former north building of Emily Carr University of Art and Design (ECUAD), which departed the island in 2017 after its new campus on Great Northern Way opened. Arts Umbrella subsequently took over ECUAD’s former south building on Granville Island as its new expanded home, while CMHC Granville Island has been conducting a bidding process seeking a new arts and innovation tenant for the vacant large north building. In October 2025, ECUAD announced it had submitted a bid to return to the north building, which needs significant upgrades due to deferred maintenance.

Future arts and innovation hub; former north building of Emily Carr University of Art & Design, as seen in July 2025. (Kenneth Chan)

Lancaster said some other buildings on the island had deteriorated to the point that they needed to be demolished in recent years for safety, leaving vacant lots — such as the parcel of land that was used for Granville Island’s FIFA World Cup live screening festivities this past summer.

But he also sees opportunities to make better use of available land, including turning surface vehicle parking lots into spaces that offer more to the community, as envisioned in the Granville Island 2040 plan.

But finding the funding sources to fulfill the components and strategies of that long-range plan for evolving and improving the island’s attractions and public spaces remains a major issue.

“The 2040 plan calls for a lot of stuff, but it doesn’t explain how to pay for it,” he said.

Lancaster described the task as finding a way to maintain what Granville Island already has, while making improvements and adding new spaces that reflect what the public values about it.

He expressed confidence that money for new projects would become available, although he did not identify a confirmed funding source or timeline in the interview.

“We do need some capital to do that. And I am very confident that it’s going to come,” he said.

Granville Island is home to more than 300 businesses employing over 3,000 people, and attracts millions of visitors annually.

Lancaster said public input will help guide the changes, while the engagement process also gives people a better understanding of the decisions facing the island.

CMHC Granville Island’s online survey for this public consultation is open until Nov. 6, 2026. After the consultation closes, a summary will be published with the findings to help guide future planning.

Future site of the new market building and elevator/staircase and observation deck tower; Granville Island, as of July 2025. (Kenneth Chan)

The west side of Granville Island, as seen from the Granville Connector in July 2025. (Kenneth Chan)

In a previous interview with Daily Hive Urbanized in 2025, Lancaster highlighted the significant planning work that had been conducted by his team, such as the future projects of a new elevator and staircase tower to reach the Granville Street Bridge’s pedestrian and cyclist pathways, with a potential observation deck. This tower — built on the east side of the bridge, replacing a vacant parcel that had been recently created from demolishing a building in poor condition — would rise from a major new additional market building with underground vehicle parking.

This would improve Granville Island’s accessibility and transportation capacity, provide new interest to visit the island, and supply CMHC Granville Island with a major new source of revenue from tenant leases.

Another significant project would be a complete overhaul of the structure and systems of the aging Granville Island Public Market. The scope of this project could require very significant years-long disruptions to the market’s operations.

The public market, opened in 1979, was the first new major use to open on the island during its post-industrial revitalization. What appears to be a seamless market complex at the northwest corner is, in fact, a collection of six former industrial buildings — some dating back more than a century.

Recently, CMHC Granville Island completed the new Chain & Forge Building and an accompanying public plaza, which were previously used for indoor and surface vehicle parking. This commercial retail/restaurant building — prominently located near the entrance into the island — includes tenants such as the restaurant Alimentaria Mexicana and sandwich shop Burdy. Earnest Ice Cream could open in Fall 2026 or early 2027, while the restaurant Baan Lao Fine Thai Cuisine and Thai dessert spot Le KaNom are expected to open in 2027.

Chain & Forge building; Granville Island, as of July 2025. (Kenneth Chan)

Roof renovation work on the Granville Island Public Market, as of July 2025. (Kenneth Chan)

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