City of Bellingham Community and Economic Development Committee

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 - Watch parties will be free to the public **AB 24822 - I Street Surplus Declaration:** Information only - No committee vote taken - Public hearing scheduled for evening council meeting - Staff recommendation to activate reversionary clause rather than loan repayment - Four nonprofit entities have expressed interest in acquiring the property

**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 Sundine, on same-day transactions:** "We'd receive from the OC and then we would sell the property to a new nonprofit selected through the RFP process... we'd be receiving the property moments before we sold the property." **Edwin H. "Skip" Williams, on the LTAC grants:** "This looks like a very wellthoughtout list of activities and things that will do nothing except boost our presence." **Council Member Loquist, on public benefit:** "There should be a community benefit, not just the event, but is there some sense in which maybe it's more financially accessible also for the public to attend these events?" **Tara Sundine, on event accessibility:** "The watch parties are free. So, there's two watch party locations... I actually I don't think there's a single venue that's charging an admission, which is an advantage of going this direction."

# 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 Sundine, Community and Economic Development Manager, acknowledged was "a property that is going to be new to you because it was certainly new to your staff." The properties at 1504 and 1506 I Street — actually a single 5,000 square foot parcel containing a converted duplex — had been serving as transitional housing for 36 years after the city conveyed it to the Opportunity Council in 1990. "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,'" Sundine explained. The Opportunity Council's decision to step away from the property triggered a reversionary clause that would return ownership to the city, but staff discovered this arrangement only when the nonprofit called seeking guidance. The original 1990 transaction had been structured with two options: the Opportunity Council could continue operating the property as transitional housing indefinitely, or it could pay back the full loan amount — originally $145,000 but now worth over $600,000 with interest. "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," Sundine said. Located in the Lettered Streets neighborhood between Dupont and Holly Streets, the property contains two two-bedroom, one-bath units valued at approximately $710,000. Before recommending the reversionary process, staff had reached out to the local nonprofit community to gauge interest. "We've seen um some of our agencies go away from these smaller scattered site properties," Sundine noted, "but it does turn out that we had at least we know of at least four entities that are interested in the asset." The unusual nature of this transaction required the city to declare surplus a property it would own only momentarily. As Sundine explained: "We'd receive the property. This would be happening at the title company and we'd we'd have all the documentation lined up, but we'd re be receiving the property moments before we sold the property." This same-day transaction approach would minimize the city's exposure to property management responsibilities and reduce transaction costs. Council Member Anderson sought clarification about the property's future use, asking whether the city preferred continued transitional housing or potential conversion to low-income homeownership. Sundine responded that the upcoming Request for Proposals would "leave all of those options open," though "the interest that we've seen so far is not in the home ownership but would be more higher needs population." The item was for discussion only, with a public hearing scheduled for that evening's council meeting where formal action could be taken. ## World Cup Fever and Downtown Activation Grants The committee's second item shifted from housing policy to economic development, as Sundine presented the Lodging Tax Advisory Committee's grant recommendations totaling significant funding for World Cup-related events and downtown improvements. Bellingham's selection as one of nine Washington communities designated as World Cup fan zones had created an unexpected opportunity. "Seattle, which is unique, they they decided they wanted to spread the excitement and energy throughout the state," Sundine explained. Six World Cup matches would be played in Seattle during the summer tournament, and Bellingham initially planned to host six corresponding watch parties. However, the city quickly realized the financial challenge. "We realized within a a couple of months of of that planning effort that hosting six watch parties was a little bit beyond the resources that we had available," Sundine said. The pivot strategy proved more ambitious: rather than the city hosting large events, they would support community venues to show games throughout the tournament. The fan zone grants were structured in four categories. Community watch parties received $25,000 each to highlight Seattle games — though Sundine noted, "we really realized how expensive it is to throw special events through this process." The designated fan zone venues category supported local businesses and nonprofits with kitchens, staff, and seating capacity to host viewing events. A third track for business readiness grants was being handled separately by the Downtown Bellingham Partnership using a $50,000 Seattle Foundation grant. The final category supported soccer-related activations to build community excitement. Council Member Loquist raised an important equity question about event accessibility: "Many of these venues probably will be maybe charging admission or not charging admission. Certainly, they'll be charging for beverages or concessions. Um, is there some sense in which these grants keep admission low or zero?" Sundine's response highlighted a key benefit of the community-based approach: "The watch parties are free. So, there's two watch party locations. One is a block party on C commercial um the same block as the Commercial Street parking garage. That will be a free and open event to the community. And then the other watch party location is at Culion Trackside and that's also free. I actually I don't think there's a single venue that's charging an admission, which is an advantage of going this direction." The downtown activation and beautification grants represented the program's third round, recommending five recipients. Bellingham Blooms would bring floral installations throughout downtown for an entire year. The Procession of the Species would receive a small grant for their familiar parade. Bay Street Outdoor Cinema would host three movie nights in the arts district. The Sunset Alley activation would add Edison lights "to make it feel more welcoming in the evening or after dark hours." Finally, Hello Lampost would continue an interactive visitor experience operated by the Downtown Bellingham Partnership. Council Member Huffman asked about funding sources, prompting Sundine to explain the lodging tax structure: "visitors that are staying in Bellingham pay an additional tax on their hotel bill that's collected and then remitted to the the city of Bellingham to stimulate additional investments." Council Member Williams offered enthusiastic support: "this looks like a very wellthoughtout list of activities and things that will do nothing except boost our presence. And so I will move approval of these." His motion carried unanimously, 3-0. ## Closing & What's Ahead The efficient committee meeting concluded at 1:57 p.m., with both items moving forward to the evening's regular council session. The I Street property surplus declaration would face a public hearing before potential council action, while the lodging tax grants had clear committee endorsement for approval. Chair Cotton noted that the Committee of the Whole would convene immediately afterward, giving council members only a brief break before continuing their afternoon of municipal business. The meeting exemplified the committee's role in providing focused discussion and preliminary review before items reach the full council, allowing members to ask detailed questions and understand complex transactions in a more intimate setting than the formal evening sessions.

## MODULE S1: STUDY GUIDE **Meeting ID:** BEL-CON-CED-2026-02-09 ### 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 (not on committee) | | Council Member Loquist | City Council Member (not on committee) | ### Background Context Two significant issues came before the committee. First, the Opportunity Council unexpectedly informed the city that after 36 years, they could no longer operate transitional housing at 1504-1506 I Street. This property, worth approximately $710,000, was conveyed to the Opportunity Council in 1990 under terms that either required them to pay back over $600,000 or allow the city to reclaim it. Rather than force repayment, the city chose to reclaim the property and immediately sell it to another nonprofit to continue serving vulnerable populations. The second issue involved World Cup preparations. Bellingham was selected as one of nine Washington communities to serve as a "Fan Zone" for the 2026 World Cup, with six matches being played in Seattle. The city initially planned large watch parties but pivoted to supporting community businesses and organizations to host events, recognizing this would be more sustainable and reach more people. ### What Happened — The Short Version The committee learned about an unexpected property situation. The Opportunity Council, which has operated transitional housing on I Street since 1990, told the city they can no longer continue. Instead of forcing them to pay back over $600,000 in loans, the city will take the property back and immediately sell it to another nonprofit through a competitive process. This keeps the property serving people in need. The committee also approved lodging tax grants for World Cup Fan Zone activities and downtown improvements. These grants, funded by taxes that hotel guests pay, will support watch parties, business preparations, and year-round downtown enhancements like flower installations and outdoor movies. Committee members asked clarifying questions and unanimously approved the grant recommendations, which will go to the full City Council for final approval. ### What to Watch Next - Public hearing on the I Street property surplus declaration at the February 9 evening Council meeting - RFP process for selecting a new nonprofit operator for the I Street transitional housing - World Cup Fan Zone events throughout summer 2026, including free watch parties ---

## MODULE S2: FLASH CARDS **Meeting ID:** BEL-CON-CED-2026-02-09 **Q:** What is the address of the transitional housing property discussed? **A:** 1504 and 1506 I Street, located in the Lettered Streets neighborhood between Dupont and Holly Streets. **Q:** How long has the Opportunity Council operated this property? **A:** 36 years, since the city conveyed it to them in 1990. **Q:** What is the estimated value of the I Street property? **A:** Approximately $710,000. **Q:** What were the two options available when Opportunity Council wanted to stop operating the property? **A:** Pay back the loan (over $600,000 with interest) or allow the city to reclaim it through the reversionary clause. **Q:** Why did the city choose the reversionary option instead of loan repayment? **A:** To keep the property serving community needs rather than having it sold on the private market. **Q:** How many nonprofit organizations expressed interest in the I Street property? **A:** At least four entities showed interest when staff reached out to the nonprofit community. **Q:** What is unusual about the surplus declaration process for this property? **A:** The city is declaring property surplus before actually owning it - they plan to receive and sell it in back-to-back transactions on the same day. **Q:** How many Washington communities were selected as World Cup Fan Zones? **A:** Nine communities, including Bellingham. **Q:** Where will World Cup matches be played? **A:** Six matches will be played in Seattle during summer 2026. **Q:** Why did Bellingham pivot from hosting large watch parties to supporting community venues? **A:** They realized hosting six large watch parties exceeded their available resources, and community support would be more sustainable. **Q:** What is the funding source for the Fan Zone and downtown activation grants? **A:** Lodging taxes collected from hotel guests staying in Bellingham. **Q:** Who oversees the lodging tax funds? **A:** The Lodging Tax Advisory Committee (LTAC). **Q:** Name two locations that will host free World Cup watch parties. **A:** A block party on Commercial Street and Culion Trackside. **Q:** What is one example of a downtown beautification grant recipient? **A:** Bellingham Blooms, which will install flower displays throughout downtown for a full year. **Q:** How many grant categories were created for the World Cup Fan Zone program? **A:** Four categories: community watch parties, designated venues, business readiness grants, and soccer-related activations. **Q:** What committee action was taken on the grant recommendations? **A:** The committee unanimously approved the LTAC grant recommendations 3-0. **Q:** Can the City Council modify the dollar amounts in LTAC recommendations? **A:** No, they can only approve or reject the recommendations; they cannot change amounts or add new items. **Q:** What happens next with the I Street property if the surplus declaration is approved? **A:** Staff will issue an RFP to select a new nonprofit operator through a competitive process. **Q:** What advantage does keeping the I Street property as transitional housing provide? **A:** More flexibility without federal funding constraints that sometimes limit how long people can live there. **Q:** Who will oversee the RFP process for the I Street property? **A:** Katie Sullivan with support from other city staff members. ---