Vancouver's St. Paul's hospital will close, and a new facility will be built in East Vancouver, near Main Street and Terminal Avenue, Providence Health Care has announced.

The announcement was made at a news conference at the health authority office Monday morning.

The new building is expected to open on the 18.5 acre site by 2022 at a cost of $1.2 billion, assuming the business case for the project can be made.

"A brand new hospital, and integrated health care campus, built from the ground up, on our Station Street site," announced Geoff Plant, the chair of the Providence Health Care Board.

The future of St. Paul's hospital has been a controversial debate, and Plant appeared to acknowledge the disappointment of many residents of Vancouver's West End who don't want the hospital to move, noting those residents will be consulted to determine "which services need to remain in the West End."

Spencer Chandra Herbert, the MLA for the West End, is upset about the decision to move the hospital to East Vancouver.

Building in disrepair

The century-old facility in downtown Vancouver is badly in need of seismic upgrading and there has long been speculation it could be demolished and replaced.

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St Paul's hospital is more than 100 years old and badly in need of a seismic upgrade. (CBC)

The province has said it`s committed to revitalizing the hospital and Premier Christy Clark pledged half a billion dollars to improve it three years ago.

Clark is not on the list of speakers for today's event.

St Paul's Hospital renewal

There has long been speculation the new St Paul's Hospital will be build near the intersection of Terminal Drive and Main Street in the False Creek Flats area. (CBC)