# 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 do know that so far this year, in 2024, that's actually gone up to 605 to 1, which is excellent." One standout success was the Bellingham Bells hosting of the West Coast League All-Star Game. Council member Stone, who attended the event, observed the economic ripple effects firsthand. "It was pretty remarkable just seeing players then from all over come to the region and then their families. And just how that ripple effect," Stone reflected. ### FIFA World Cup 2026 Preparation The discussion turned to a major upcoming opportunity: the 2026 FIFA World Cup. With games scheduled in both Vancouver and Seattle, Bellingham's strategic location at the busiest U.S.-Canada border crossing presents significant potential. "Obviously we sit right at the largest border crossing between Vancouver and Seattle. And there are games in both of those cities," Deane-Boyle explained. "Some of those games are happening at the same time, but some are not. There's a day or two in between, so there's definitely some potential for some pretty good cross-border traffic there." The organization has already begun laying groundwork, creating a FIFA information page on their website and working with regional partners. "Through the mayor's office, we hired rep Joe Timmons this summer to do some work to pay attention to the regional conversations that were happening in advance of World Cup 2026 and potential opportunities to become a fan hub," added Tara Sundin, the city's Community and Economic Development Manager. The tourism budget includes $50,000 in planning funds for World Cup preparation, though Sundin anticipated additional requests would follow. The committee unanimously approved the tourism budget. ## Lodging Tax Funds in High Demand The second major item was the Lodging Tax Advisory Committee's 2025 budget recommendations totaling $2.7 million — a significant increase driven by growing demand for grants and events. Sundin explained the dramatic growth in grant requests: "We received about 1.2 million in requests for what was last year, a $400,000 line item." She attributed this to increased exposure of the grant program and inflation affecting event operations costs. A notable policy change opened up opportunities for event operational funding. "This last year, the lodging tax advisory Committee recommended no cap on what a an event or venue could use for operations," Sundin noted. "Previously the lodging tax Advisory Committee placed a higher priority on marketing, so that opening opening it up, if you will, created greater demand on the funds." The budget includes funding for two signature events: the final year of Bellingham Exit, a downtown October music event, plus $100,000 for a new signature event selected through a competitive process. The downtown activation grants program also shows remarkable interest, with over $1 million in requests for $250,000 in available funding across 26 applications. Cotton sought clarification on the signature event funding breakdown, confirming that $175,000 would support both the existing Bellingham Exit event in its final year and seed funding for a new signature event. The committee unanimously approved these lodging tax recommendations. ## Housing Successes and Federal Uncertainties The final presentation brought more sobering considerations as Housing and Services Program Manager Samya Lutz presented the Consolidated Annual Performance and Evaluation Report (CAPER) — the city's required annual report to the federal Department of Housing and Urban Development. The report detailed impressive housing production accomplishments, with the city far exceeding its goals. "We are far surpassing the goals that administrative and financial plans set out, that 600 unit goal. We have completed over that number, almost 700 units since 2019," Lutz reported. Major completed projects included the Opportunity Council's Laurel & Forest development with 56 senior units, Mercy Housing's Millworks project adding 83 mixed-income units at the waterfront, and several housing preservation efforts. However, the homebuyer program continues struggling with market realities. "Generally speaking, the cost of a home far surpasses the amount someone at 80% of area median income can afford," Lutz acknowledged, though recent increases to city assistance amounts should help. ### Federal Funding Vulnerability Stone pressed on a critical vulnerability: the city's dependence on federal HUD funding that represents about 9% of total housing program funding but faces an uncertain future. "Do we have any either anticipation of what may happen and or preparations that we're able to make now?" Stone asked, noting concerns about potential abrupt cuts rather than gradual declines. Lutz confirmed the precarious timeline: "We typically do not find out what our allocation is from HUD until June. Sometimes may, even though their fiscal year starts in the fall." The uncertainty extends beyond just annual allocations — "It can be as early as April. It's supposed to be after the federal budget is passed. Now, we know that there are continuing resolutions, and so that gets delayed. And it your guess is as good as mine." While the city would survive loss of the roughly $1.5 million in annual HUD funding within its much larger housing budget, "it would certainly have an impact if it didn't come," Lutz acknowledged. ### Cross-Agency Coordination Hopes Council President Hammill raised questions about potential coordination with county justice programs, given major investments in criminal justice facilities. "Is there has there been any discussion or coordination or integration with the J-pop folks over at the county side? The, the justice Project Oversight program, as it relates to the largest capital investment in Whatcom County's history for folks that are either upstream prevention or a release of after and reentering the community?" Sundin indicated these conversations were "really just beginning" as county officials work through basic facility questions, but coordination would develop as planning progresses. ## Services Reaching Those Most in Need The CAPER data revealed the housing and services programs are successfully targeting the most vulnerable populations. Across all program areas, 78% of beneficiaries had incomes below 30% of area median income, with another 19% between 31-50% AMI. The rental assistance and services program served 8,819 people against a goal of 3,000, demonstrating both the tremendous need and the city's expanding capacity to respond. Programs ranged from basic needs like food security to specialized housing services and emergency shelter operations. ## Looking Forward As the meeting concluded, the three agenda items painted a picture of a city with growing economic confidence through tourism, expanding capacity to address housing needs, but facing potential federal funding uncertainties that could affect vulnerable residents most acutely. The tourism sector's impressive growth metrics and strategic World Cup preparation suggest Bellingham is successfully positioning itself as a premier Pacific Northwest destination. The housing programs' goal-exceeding performance demonstrates effective use of local levy funds and innovative partnerships. Yet the looming questions about federal support serve as a reminder of the complex funding landscape cities navigate in addressing housing and services for low-income residents — particularly as political changes at the federal level create uncertainty about continued HUD program support. The committee forwarded all three items to the full council with unanimous recommendations for approval, setting the stage for continued tourism growth, housing production, and hoping that federal partnerships remain stable enough to support the city's most vulnerable residents.