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Community and Economic Development Committee

BEL-CED-2024-11-18 November 18, 2024 Planning Committee City of Bellingham 51 min
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The Community and Economic Development Committee met to review and approve three significant budget proposals totaling over $5 million in tourism promotion and housing programs. Chair Jace Cotton led the committee through unanimous approval of the Bellingham Whatcom County Tourism's 2025 Tourism Promotion Area budget of $1.48 million and the Lodging Tax Advisory Committee's $2.7 million budget recommendations. The committee also received an informational presentation on the city's housing accomplishments for the 2023-2024 program year, which demonstrated significant progress toward affordable housing goals with nearly $15 million in expenditures across federal and local funding sources. Committee Member Hollie Huthman was excused, with Council Member Edwin "Skip" Williams serving as substitute. The meeting highlighted the economic impact of tourism, with over $750 million in visitor spending in Whatcom County in 2023, representing a 9% increase and the second-highest growth rate in the state. The housing report showed the city has exceeded its production goals, completing 693 units toward a 600-unit target, though federal funding uncertainty remains a concern. All three agenda items moved forward with unanimous committee approval, demonstrating strong support for both tourism promotion and affordable housing initiatives.

**AB 24329 - Tourism Promotion Area Budget:** Approved unanimously (3-0) to recommend the $1.48 million 2025 Tourism Promotion Area budget. The budget supports Bellingham Whatcom County Tourism's marketing and promotional activities, with funding derived from a $3 per room night charge on lodging businesses with 40+ rooms. The approval aligns with state law requirements for annual budget approval by the legislative authority. **AB 24330 - Lodging Tax Advisory Committee Budget:** Approved unanimously (3-0) to recommend the $2.7 million LTAC budget for 2025. The budget includes $704,800 …

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**Tourism Economic Development Strategy:** Dylan Dean Boyle presented comprehensive data showing tourism's economic impact exceeding $750 million in 2023, with Bellingham ranking among the top five counties per visitor spend statewide. The Tourism Promotion Area, established in 2021, has made the city's budget competitive with similar-sized destinations. Strategic investments include expanded Vancouver Metro marketing campaigns, border crossing billboards ahead of FIFA 2026, and digital quest passes partnering with local organizations. The return on digital advertising reached $605 to $1 spent in 2024, demonstrating strong economic efficiency. **World Cup 2026 Preparation:** Significant discussion focused on FIFA World Cup opportunities, with games scheduled in both Vancouver and Seattle. Staff have allocated $50,000 in planning funds for 2025, with additional requests anticipated. The city has hired consultant Joe Timmons to monitor regional conversations and potential fan hub opportunities. Tourism staff have created a FIFA information page and are coordinating wi…
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**Council Member Hannah Stone:** Expressed enthusiasm for tourism economic impacts and questioned timeline needs for World Cup 2026 planning, seeking clarification on advance planning requirements for major events. **Council Member Edwin "Skip" Williams:** Served as substitute member and made motions for both budget approvals, asking for clarification on signature events funding allocation between Bellingham Exit (final year) and new signature events. **Council President Dan Hammill:** Inquired about coordination between city housing programs and the county's Justice Project Oversight Program (J-POP), noting the county's largest capital investment in history for behavioral health facilities and questioning integration opportunities for reentry services. …
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**Dylan Dean Boyle, on tourism economic impact:** "In 2023, total travel spend from visitors outside the area to Whatcom County was over $750 million. That is over a 9% increase from 2023, which is excellent news. And we actually were only outpaced by King County in terms of percent growth rate for visitor spend in the state." **Dylan Dean Boyle, on World Cup opportunities:** "Obviously we sit right at the largest border crossing between Vancouver and Seattle. And there are games in both of t…
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**Tourism Budgets:** Both tourism budgets advance to full City Council for final approval at the evening meeting on November 18, 2024. **Lodging Tax Signature Events:** LTAC will make recommendations on the new signature event next week, with approximately eight applications received for the $100,000 funding opportunity. **Downtown Activation Grants:** Second round launches with $250,000 available and over $1 million in interest from 26 applications. **Housing Levy Modifications:** Samya Lutz…

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**Tourism Promotion Budgets Approved:** Committee approved $1.48 million Tourism Promotion Area budget and $2.7 million LTAC budget, enabling continued tourism marketing and promotional activities for 2025. **FIFA Planning Funded:** $50,000 allocated for World Cup 2026 planning, with framework established for regional coordination and potential fan hub opportunities. **Grant Program Expansion Confirmed:** LTAC budget reflects significant inc…
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# A Day of Tourism, Housing, and Federal Uncertainty On a brisk November afternoon at Bellingham City Hall, the Community and Economic Development Committee convened for what would prove to be a revealing window into the city's economic vitality and its housing challenges. Committee Chair Jace Cotton led the session with council members Hannah Stone and Edwin "Skip" Williams, filling in for the excused Hollie Huthman. ## Tourism's Growing Economic Impact The meeting's opening item brought Dylan Deane-Boyle, president and CEO of Bellingham Whatcom County Tourism, to present the organization's 2025 Tourism Promotion Area budget — a $1.48 million spending plan that reflects the growing sophistication of Bellingham's tourism industry. Deane-Boyle began with compelling statistics that underscored tourism's economic significance. "In 2023, total travel spend from visitors outside the area to Whatcom County was over $750 million," he reported, noting this represented a 9% increase that outpaced most of the state. "We actually were only outpaced by King County in terms of percent growth rate for visitor spend in the state." The presentation highlighted the return on advertising investment through mobile location data tracking. "In 2023, the return on ad spend for that digital spend was almost $400 spent locally to $1 spent for us," Deane-Boyle explained. "And I d…
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### Meeting Overview The Bellingham City Council's Community and Economic Development Committee met on November 18, 2024, to approve two budgets related to tourism promotion and review the city's annual housing and services report. Chair Jace Cotton led the committee through approval of the 2025 Tourism Promotion Area budget ($1,479,800) and the Lodging Tax Advisory Committee budget recommendations ($2.7 million), plus received an informational presentation on housing and services accomplishments. ### Key Terms and Concepts **Tourism Promotion Area (TPA):** A special district established by state law that collects $3 per night from guests at lodging businesses with 40+ rooms to fund tourism marketing and promotion activities. **Lodging Tax Advisory Committee (LTAC):** A committee that reviews and recommends how to spend lodging tax funds on tourism grants, events, and facilities. **Community Development Block Grant (CDBG):** Federal funding from HUD for community development activities including housing rehabilitation, public facilities, and services for low-income households. **HOME Investment Partnership:** Federal program providing grants to create affordable housing through building, buying, rehabilitating, or providing rental assistance. **Consolidated Annual Performance and Evaluation Report (CAPER):** Required annual report to HUD documenting how federal and local housing funds were spent and what was accomplished. **Area Median Income (AMI):** The midpoint income level used to determine eligibility for affordable housing programs. Most city programs serve households below 50% of AMI. **Housing Levy:** A voter-approved property tax providing $40 million over 10 years (2019-2028) for affordable housing production and preservation. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Jace Cotton | Committee Chair, Council Member At-Large | | Hannah Stone | Committee Member, First War…
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