The gallery is currently located in an old courthouse downtown but it has run out of room for its collections and programs.
The new location is a vacant lot blocks away, to the southeast, and was recommended by city staff last week.
Art-gallery staff now have until the spring of 2015 to raise $150 million to build the facility.
Coun. Heather Deal says a new building will draw attention to the city and give staff the ability to air out the current gallery's "catacombs" of art.
Businessman and philanthropist Michael Audain says advocates need to get the city's wealthy on board, and not rely only on the provincial and federal governments and arts community for funding. (CKNW/News 1130)
Also on HuffPost