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Committee of the Whole

BEL-CTW-2025-04-14 April 14, 2025 Committee of the Whole City of Bellingham
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The Committee of the Whole convened for a comprehensive 5-item agenda focusing on major economic development, health services strategy, and tenant protection legislation. The meeting highlighted significant progress on the Waterfront District redevelopment, with both city and port officials providing updates on completed projects like the 83-unit Mercy Housing development and upcoming initiatives including marine trades expansion and World Cup 2026 fan zone preparations. A key milestone was achieved with unanimous approval of $54,000 in lodging tax funding for the Nocturnal Lanterns art installation at the Whatcom Museum's Lightcatcher building. The committee also received an extensive briefing from the new Strategic Initiatives Manager for Health and Human Services, Jason Cornelissen, who outlined his six months of community networking and future plans for addressing homelessness and addiction services. The meeting's substantial focus was on refining two landlord-tenant ordinances designed to regulate rental fees. Council Member Cotton presented extensive amendments to both the general rental fee ordinance and the manufactured home-specific version. While the committee accepted staff-proposed redline amendments and directed additional review of Cotton's proposals, significant work remains on both ordinances, with continuation scheduled for May 5, 2025. The session concluded with council expressing support for the House version of state rent stabilization legislation over Senate amendments that would allow inflation-indexed rent increases, directing city lobbyists to advocate for the more restrictive approach.

**AB 24506 - LTAC Funding Recommendation:** APPROVED 7-0 - **Action:** $54,000 grant to Sparks Design for Nocturnal Lanterns installation - **Staff Recommendation:** Approve (LTAC-recommended) - **Key Details:** Art and lighting installation on Lightcatcher building alley wall - **Impact:** Adds downtown activation and beautification element for summer 2025 **Rental Fee Ordinance Amendments (AB 24501):** Multiple motions approved 7-0 - **Action 1:** Direct staff to clarify late fee time period language - **Action 2:** Accept all redline amendments in staff packet - **Action 3:** Direct administration to review Cotton's proposed amendments - **Timeline:** Return to c…

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**Waterfront District Development Strategy** The 20+ year redevelopment partnership between city and port reached significant implementation phase with 160,000 square feet completed toward the 500,000 square foot Phase 1 threshold. Brian Gouran detailed the marine trades area expansion requiring sub-area plan amendments by 2026-2027, including conversion of the Aerated Stabilization Basin from planned marina to 15 acres of marine trades land plus aquatic habitat. The port commission's decision reflected boater demand analysis and maintenance cost considerations for existing marinas. Council pressed on connectivity issues between downtown, Old Town, and waterfront areas, with discussion of the expensive Bay Street Connector project ($30-40 million) triggered by development thresholds rather than firm timelines. **Rental Fee Regulation Framework** Extensive deliberation on two ordinances targeting "junk fees" in residential rentals and manufactured home communities. Council Member Cotton's comprehensive amendment package addressed definitions, disclosure requirements, security deposit provisions for rapid rehousing programs, and …
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**Port of Bellingham (Brian Gouran):** Strong support for marine trades expansion over marina development, citing economic development priorities and job creation potential. Emphasized partnerships with Salvation Army-type organizations as model for emergency shelter capacity, drawing comparison to Portland's recent success. **City Staff (Tara Sundin):** Highlighted infrastructure investment priorities including Bay Street Connector based on development thresholds rather than predetermined timeline. Supported phased approach to major capital projects tied to private development su…
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**Brian Gouran, on port-city partnership:** "I just got to say it's a great partnership. It's really helped. The agreements have held up really strong as well." **Tara Sundin, on development pace:** "This development's not like real speedy, right? But part in part. That's because our market's not maybe as robust as I think some people think it is." **Council Member Lilliquist, on marine trades planning:** "I'm in favor of a working waterfront in the marine trades area. Shipping terminal area…
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**May 5, 2025:** Return of both rental fee ordinances after legislative session ends and administration review of Cotton amendments **Summer 2025:** Implementation of Nocturnal Lanterns art installation and Northwest Tune-Up event (third year) **2026:** World Cup fan zone activation in Waterfront District for six Seattle matches, Bellingham Shipping Terminal rail connection design completion **2026-2027:** Marine…

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**Municipal Position on State Legislation:** City now has clear directive to lobbyists supporting House rent stabilization approach over Senate amendments, marking first official stance on the legislative negotiation process. **Rental Fee Ordinance Status:** Both ordinances advanced with accepted redline amendments and direction for additional staff review, moving closer to final adoption with May 5 consideration date established. **Health Services Coordination:** Formalized the mayor's office role in co…
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# Waterfront Renaissance Unfolds as Council Tackles Housing Costs A bustling City of Bellingham Committee of the Whole meeting on April 14, 2025, showcased the transformation of the Waterfront District while council members wrestled with complex rental fee legislation that has been months in the making. The 3 hour and 45-minute session revealed both the excitement of waterfront development and the challenges of crafting tenant protection ordinances. ## The Waterfront's Slow but Steady Evolution Tara Sundin from Planning and Community Development and Brian Gouran from the Port of Bellingham presented an extensive update on the Waterfront District's progress, a 236-acre former Georgia-Pacific site that represents one of the most ambitious redevelopment projects in the region. The partnership between the city and port, formalized through a 2013 interlocal agreement, has weathered the complexities of transforming an industrial site into a mixed-use community. "This is a huge site for a town our size," Sundin noted. "It was a huge undertaking, and that's why the city and the port formed a partnership to take on this risky development." The development is still in phase one, defined as building up to 500,000 square feet of new construction south of Whatcom Waterway. Currently, they've completed about 160,000 square feet of new construction, with recent completion of one of Harcourt's buildings bringing the district closer to its initial milestone. ### Success Stories Already Taking Shape The crown jewel so far is Mercy Housing's Millworks project — 83 units of permanently affordable housing that became fully occupied shortly after opening. "The first project that came online was actually 83 units of permanently affordable housing," Gouran emphasized, addressing early concerns that the waterfront would become exclusively for wealthy residents. The development includes a six-classroom early learning center operated by the YMCA, with rents ranging from $872 to $1,459 monthly for households earning 50-60% of average median income. The project demonstrated what careful partnerships could achieve, bringing together the Port, City, Mercy Housing, Community Foundation, and Department of Ecology. Millworks Phase 2 is already in motion, with 109 units of workforce housing planned. This next phase will target households earning 100-110% of average median income and include a unique food campus with shared commercial kitchen spaces for food trucks and other food en…
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### Meeting Overview The City Council Committee of the Whole met on April 14, 2025, to receive major updates on Waterfront District development progress and discuss proposed landlord-tenant fee regulations. The meeting featured presentations from both city and port staff on significant public and private projects recently completed, underway, or planned for the waterfront area. ### Key Terms and Concepts **Committee of the Whole:** A meeting format where all council members participate in detailed discussions and work sessions, typically without formal public comment periods. **Waterfront District:** A 236-acre redevelopment area that was formerly the Georgia-Pacific site, planned as part of Bellingham's city center alongside Old Town and Downtown. **Interlocal Agreement for Facilities:** The foundational legal document between the City of Bellingham and Port of Bellingham that defines roles, responsibilities, and financial arrangements for waterfront redevelopment. **Phasing Plan:** The waterfront development is divided into phases based on square footage milestones. Phase 1 allows up to 500,000 square feet of new development south of Whatcom Waterway. **Marine Trades Area:** One of five sub-areas in the waterfront district focused on light industrial manufacturing, boat building, boat storage, and marine-related industries. **Sub-Area Plan Amendment:** A formal planning process requiring city council approval to modify land use designations and development rules for specific areas. **Junk Fees:** Excessive or unfair rental fees that make housing harder to access and afford, particularly impacting cost-burdened renters. **Lodging Tax Advisory Committee (LTAC):** A committee that reviews and recommends funding for tourism-related projects using revenue from lodging taxes. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Hollie Huthman | Council President/Committee Chair | | Tara Sundin | Community & Economic Development Manager, City of Bellingham | | Brian Gouran | Director of Environmental & Planning Services, Port of Bellingham | | Jason Korneliussen | Strategic Initiatives Manager for Health & Human Services, Mayor's Office | | Hannah Stone | Council Member, First Ward | | Daniel Hammill | Council Member, Third Ward | | Edwin "Skip" Williams | Council Member, Fourth Ward | | Lisa Anderson | Council Member, Fifth Ward | | Michael Lilliquist | Council Member, Sixth Ward | | Jace Cotton | Council Member, At-Large | ### Background Context The Waterfront Distric…
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Economic Development Housing Social Services Government Operations HB 1217 Community Foundation Kulshan Brewing Mercy Housing Paper Whale Port Of Bellingham Recovery Cafe Salvation Army Whatcom County Ymca Alan Marriner Blake Lyon Brian Gouran Daniel Hammill Edwin Williams Hannah Stone Hollie Huthman Jace Cotton Jason Cornelissen Kim Lund Lisa Anderson Michael Lilliquist Tara Sundin Affordable Housing Art Public Behavioral Health Climate Action Downtown Development Economic Development Health Services Homelessness Marine Trades Rental Housing Policy State Legislation State Legislature Tourism Transportation Policy Waterfront Development