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City of Bellingham Community and Economic Development Committee

BEL-CON-CED-2026-02-09 February 09, 2026 Planning Committee City of Bellingham 22 min
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The Community and Economic Development Committee met for a brief 22-minute session to address two distinct items: a unique property transfer situation and World Cup-related grants. The meeting's most unusual item involved a duplex at 1504-1506 I Street that the city conveyed to Opportunity Council in 1990 for transitional housing, which the nonprofit now wants to return due to capacity constraints. The committee learned that this property transfer included a reversionary clause allowing the city to reclaim the asset if it was no longer used for transitional housing. Rather than forcing Opportunity Council to repay the original $145,000 loan (now worth over $600,000 with interest), staff recommended activating the reversionary clause and immediately transferring the property to a new nonprofit through an RFP process. This "same-day transaction" approach would minimize the city's ownership exposure while ensuring continued transitional housing use. The committee also unanimously approved Lodging Tax Advisory Committee grant recommendations totaling funding for Bellingham's designated World Cup fan zone activities and downtown beautification projects. The fan zone grants support community watch parties, venue partnerships, and soccer-related activations, while the downtown grants fund year-long flower installations, outdoor cinema, alley improvements, and interactive visitor experiences. All committee members expressed support for both items, with the surplus declaration heading to a public hearing at the evening council meeting and the LTAC grants receiving formal approval to move forward to full council consideration.

**AB 24823 - LTAC Grant Recommendations:** Approved 3-0 - Motion by Edwin H. "Skip" Williams - Grants support Bellingham Fan Zone activities and Downtown Activations and Beautification Program - Funding sourced from lodging tax collections from hotel visitors - Final grant amounts subject to contracting process adjustments - Watc…

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**I Street Property Transfer Process:** The committee learned about a 36-year-old property arrangement that staff described as a surprise discovery. In 1990, the city conveyed a duplex to Opportunity Council with two key provisions: a reversionary clause allowing the city to reclaim the property if it ceased being used for transitional housing, or a loan repayment requirement of $145,000 plus interest (now over $600,000). Opportunity Council contacted the city because they can no longer maintain the property as transitional housing. Staff recommended the reversionary option over loan repayment, reasoning that the community still needs transitional housing assets and that forcing repayment would likely result in the property going to the private market. The proposed "same-day transaction" would have the city receive the property and immediately transfer it to a selected nonprofit, minimizing city ownership exposure while maintaining the asset's public benefit use. The process requires surplus declaration despite the unusual circumstance of surplusing property…
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**Tara Sundine (Community and Economic Development Manager):** Advocated strongly for the reversionary clause approach to the I Street property, emphasizing efficiency benefits of same-day transactions, community need for transitional housing assets, and the city's desire to avoid property management responsibilities. Expressed enthusiasm for the World Cup fan zone pivot to community-based programming, noting it allows more games to be shown than the original six Seattle matches. **Committee Chair Jace Cotton:** Asked probing questions about whether other reversionary interests exist, showing concern about unknown city obligations. Generally supportive of both agenda items while seeking clarity on precedents and processes. **Council Membe…
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**Tara Sundine, on the I Street property surprise:** "My staff was a little surprised when they got a call from the opportunity council saying, 'Hey, um, we're no longer able to to look after and care for this home anymore. We need to talk to you about next steps.'" **Tara Sundine, on the reversionary clause decision:** "Rather than the OC having to pay us back and then putting the house on the private market, we knew that our community still needed to have an asset like this." **Tara Sundin…
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**I Street Property Surplus Declaration:** - Public hearing at evening council meeting (February 9, 2026) - If approved, RFP process to begin immediately - Katie Sullivan to oversee RFP with support from multiple departments - Selection and negotiation with recipient nonprofit - Same-day property transfer execution at title company **World Cup Fan Zone Activities:** - Contracting process with grant recipients to finalize amounts - Bulk purchasi…

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The city moved from theoretical knowledge of a reversionary interest to active property recovery and redistribution. The I Street property will transition from Opportunity Council management back to city ownership and immediately to a new nonprofit operator, maintaining transitional housing use while changing management structure. Bellingham's World Cup fan zone approach shifted from city-hosted large events to community-based programming through grants, expanding the number of potential viewin…
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# Community and Economic Development Committee — February 9, 2026 ## Meeting Overview The Community and Economic Development Committee convened at 1:35 p.m. on February 9, 2026, with Chair Jace Cotton presiding alongside committee members Hollie Huthman and Edwin "Skip" Williams. This brief 22-minute meeting addressed two distinct but significant items: an unusual property transaction involving a decades-old transitional housing facility, and a slate of grants designed to capitalize on Bellingham's selection as a World Cup fan zone. Both items reflected the city's ongoing efforts to support housing needs and economic development through creative partnerships with nonprofits and the hospitality industry. The meeting's first item introduced council members to a property they had never heard of — a duplex on I Street that the city had conveyed to the Opportunity Council in 1990 with reversionary rights, creating a unique situation where the city would need to declare surplus a property it didn't technically own yet. The second item moved swiftly toward approval of nearly two dozen grants funded by lodging tax revenue, supporting everything from World Cup watch parties to downtown beautification efforts. ## The Surprise Property on I Street The meeting opened with what Tara S…
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### Meeting Overview The Bellingham City Council's Community and Economic Development Committee met on February 9, 2026, to discuss two major agenda items: the surplus declaration process for two properties on I Street and the approval of lodging tax grants for the World Cup Fan Zone and downtown activation programs. ### Key Terms and Concepts **Surplus Declaration:** The formal process by which a city declares that a property is no longer needed for municipal purposes and can be sold or disposed of, often through a special process for below-market sales to nonprofits. **Reversionary Clause:** A legal provision that allows the original property owner (in this case, the City) to reclaim property if it's no longer being used for its intended purpose or if loan terms aren't met. **RFP (Request for Proposals):** A competitive bidding process where organizations submit proposals to provide services or receive grants, allowing the city to evaluate multiple options before selecting the best fit. **Lodging Tax Advisory Committee (LTAC):** A committee that oversees how lodging taxes collected from hotel guests are spent, focusing on tourism promotion and visitor-related activities. **Transitional Housing:** Temporary housing designed to help people move from homelessness or crisis situations to permanent housing, typically with supportive services. **Special Disposition Process:** A city procedure that allows property to be sold at below-market rates when it serves a public benefit, such as affordable housing. **Fan Zone:** A designated area or program where communities can watch World Cup matches together, part of Seattle's effort to spread excitement throughout Washington State. **Downtown Activation Grants:** City funding programs designed to create events and improvements that bring people downtown and enhance the visitor experience. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Jace Cotton | Committee Chair, At-Large Council Member | | Hollie Huthman | Committee Member, Second Ward Council Member | | Edwin H. "Skip" Williams | Committee Member, Fourth Ward Council Member | | Tara Sundine | Community and Economic Development Manager | | Council Member Anderson | City Council Member (…
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Government Operations AB 24822 AB 24823 Downtown Bellingham Partnership Lodging Tax Advisory Committee Opportunity Council Port Of Bellingham Seattle Foundation Visit Bellingham Amy Cra Hollie Huthman Jace Cotton Katie Sullivan Skip Williams Tara Sundine Place Commercial Street Place I Street Place Sunset Alley Downtown Beautification Fan Zone Lodging Tax Property Transfer Reversionary Clause Rfp Process Surplus Property Transitional Housing Visitor Experience World Cup