The old East Perth power station is set to languish for at least four more years in what City of Vincent mayor Alannah MacTiernan said was a scandal.
State Budget papers reveal the Government has deferred the heritage-listed power station's redevelopment beyond the forward estimates.
The former Labor government, in which Ms MacTiernan was planning minister, spent $14 million restoring the building's exterior and mooted a $500 million plan to move the WA Museum there.
But the Barnett Government scotched the idea and revealed its own museum plans in the Budget.
"I accept that the Government has decided it wants to put the new museum elsewhere," Ms MacTiernan said yesterday. "I don't think that's the wisest decision, but that's their call.
"But, to now leave the power station, in such a sensational spot, for another four years and indefinitely, I just think it's a scandal."
She said the site was prone to vandalism and reiterated her idea to shift the WA Academy of Performing Arts contemporary music section there.
Shadow arts minister and Perth MLA John Hyde said the delay held up redevelopment of the entire precinct, include East Perth train station.
Planning Minister John Day restated the vision for a mixed-use precinct but said the market release of "this unique opportunity will be timed to best meet the objectives of the master plan".
Mr Hyde said it cost $2 million a year to maintain the building but Mr Day said it averaged $63,000.
The Budget papers also reveal delays to the Riverside project in East Perth because of "current market conditions" and development delays at the Perth Cultural Centre were blamed on being unable to reach "forecast lease revenues".
Mr Day said further Cultural Centre upgrades would be determined by a longer-term plan and the development of the new museum.
The Riverside, Perth City Link and the waterfront projects would be staged over coming years.