Island Health and the Capital Regional Hospital District (CRHD) have signed a memorandum of understanding (MOU) establishing a collaborative planning framework to evaluate the potential redevelopment of the former Oak Bay Lodge site in Oak Bay.
The MOU formalizes a shared commitment to explore whether the publicly owned property at 2251 Cadboro Bay Road could support future health and community services that meet regional needs while making effective use of the site.
“We had productive meetings this week with the District of Oak Bay, Island Health and the Capital Region Hospital District, and this MOU is a meaningful step for Oak Bay Lodge. I look forward to seeing the planning work continue and to explore options that could bring care and services closer to where people live, while supporting the needs of our growing and aging population,” said Diana Gibson, MLA for Oak Bay Gordon Head. "Oak Bay Lodge has been a top priority for me because I know how important it is to our community, and I am grateful to the community groups and neighbours who have worked tirelessly alongside us to move this project forward. I am committed to being an advocate for our community and continuing the work to bring these partners together to deliver meaningful projects that will impact the lives of so many.”
“This agreement reflects our commitment to thoughtful, evidence-informed planning for the future of health services in our region,” said Leah Hollins, board chair of Island Health. “Working collaboratively with the CRHD allows us to evaluate opportunities that could support future care needs while ensuring any potential redevelopment aligns with provincial priorities, available funding and the needs of the communities we serve.”
The former Oak Bay Lodge property was transferred to the CRHD in 2020 with a public-good covenant registered on title. Earlier this year, Island Health and the CRHD jointly commissioned an economic feasibility study to explore potential redevelopment scenarios and opportunities that could support health and community services. The study examined a range of conceptual options, including seniors' care, hospice, long-term care, community health, ambulatory care and primary care uses.
“This memorandum of understanding provides an important step forward for continued collaboration as we assess the future potential of this important community asset,” said Kevin Murdoch, board chair of the Capital Regional Hospital District. “Our goal is to ensure due diligence is completed and that any future decisions are grounded in a clear understanding of recognized community needs, project feasibility and long-term sustainability.”
The MOU does not approve a redevelopment project, establish a budget, commit capital or operating funding, or require Island Health to relocate any programs or services to the site. Any future redevelopment proposal would require additional planning, partner participation, funding approvals and provincial endorsement before proceeding.
Under the agreement, Island Health and the CRHD will continue evaluating potential redevelopment options over the next two years, including opportunities that could help address regional health-service needs and support care closer to home.
Quick Facts
• The former Oak Bay Lodge site is a 3.9-acre property located at 2251 Cadboro Bay Road in Oak Bay.
• Oak Bay Lodge closed in 2020, and residents were relocated to The Summit long-term care home.
• Island Health and the CRHD retained Colliers in 2025 to conduct an economic feasibility study examining potential public-good redevelopment scenarios for the site.
• The MOU establishes a collaborative planning framework only and does not represent approval of a redevelopment project or funding commitment.