Ferndale City Council

**Administrator Burnett, on the Growth Management Act obligation:** "We need to plan for the for urban governmental services specifically including sanitary sewer, where sanitary sewer is considered the urban use. It is the only utility. That cannot, except for in very special circumstances, go outside of a city." **David Forman, on proposed commercial zoning:** "I would suggest that creating a parcel with this zoning that's next to a school and next to a future school land that's proposed to be zoned as Pi and then is adjacent to single family neighborhoods. On both sides, East and West. Isolated then this little 5 acre parcel from any other commercial development is seriously problematic." **Rose Lathrop, on the CHIP grant success:** "Your policy change and your formal vote to approve this collaboration so. Very deep. Thank you to you all. The $1,000, 000 chip award is a real win for Ferndale and it's possible because of your action." **Administrator Burnett, on economic developme

# Ferndale City Council — Community Growth and Development Paths ## Meeting Overview On a chilly February evening in 2026, Ferndale City Council gathered for what would become a pivotal discussion about the city's future growth trajectory. Mayor Greg Hansen called the meeting to order at 5:00 PM, with all council members present except Jon Mutchler, who arrived during the session. The agenda carried the weight of significant community development decisions—from ongoing affordable housing partnerships to a major infrastructure project that could reshape the city's northern corridor. The meeting embodied the fundamental tension facing many growing communities: balancing fiscal responsibility with the obligation to plan for inevitable growth. The evening's discussions would span from the intimate scale of affordable housing to the regional implications of industrial development, each item reflecting Ferndale's position as a community caught between its small-town identity and the pressures of regional growth. ## Kulshan Community Land Trust — Affordable Housing Victory The meeting's most celebratory moment came with Rose Lathrop's presentation on behalf of the Kulshan Community Land Trust (KCLT). Her announcement of a $1 million CHIP (Connecting Housing to Infrastructure) grant for the Thornton Village project brought visible enthusiasm to the council chambers. "We were awarded the $1 million chip grant for the Thornton Village project," Lathrop declared, her excitement palpable. "And that award would not have been possible without the city of Ferndale's partnership." She emphasized how the city's early policy changes and formal partnership had been "catalytic," not merely symbolic, in securing this major funding breakthrough. The Thornton Village project represents a 46-unit permanently affordable homeownership community located on what was formerly Samsung Road. These duplexes will provide long-term stability for working families through the community land trust model, which keeps homes affordable not just for the first buyer, but "for generations." Lathrop's presentation highlighted the critical concept of "first money in"—the idea that early public investment, especially from municipal partners, often determines whether affordable housing projects move forward at all. "It signals confidence and it tells the state agencies and funders that the project is real and supported and worth backing," she explained. The timing element added urgency to her update. With construction costs continuing to rise and nearly $1 million already invested in pre-development work, maintaining momentum was essential. The project's capital stack includes $8 million currently included in the state capital budget, requiring legislative approval within the next 31 days. Council members responded positively, with Councilmember Pinto-Gonzalez expressing gratitude for KCLT's catalytic role and Councilmember Porter seeking clarification on the project's location. The project's success story demonstrated how municipal partnership could leverage significant external funding for community benefit. ## Portal Way Roundabout — Eminent Domain Authorization The council addressed a more procedural but equally important infrastructure matter with the Portal Way I-5 Northbound Roundabout project. Project Manager Katie Radder, participating remotely, walked the council through the necessity of authorizing eminent domain powers for property acquisition. The project itself represents a significant traffic capacity improvement, replacing the existing compact roundabout with a full-sized version capable of handling multiple circulating lanes. "The project includes removing the compact roundabout at the northbound on off ramp at Portaway and Interstate 5 and replacing that with a full grown up sized roundabout," Radder explained. Beyond traffic flow improvements, the project encompasses pedestrian safety enhancements, bicycle facilities, water line improvements, and storm water system upgrades including a new outfall to the Nooksack River. The storm water improvements will serve not just the immediate project area but provide additional capacity for development south of New Kirk Road. The eminent domain authorization affects three properties owned by two parties, requiring a mix of permanent easements and temporary construction easements. Radder emphasized that this authorization serves as a protection mechanism for both the city and property owners, ensuring fair market value compensation while preventing project delays that could arise from prolonged negotiations. Councilmember Pinkley inquired about lane configurations, learning that the project would add a third lane under the I-5 overpass—two westbound lanes and one eastbound. Councilmember O'Leary sought clarification about similar improvements to the southbound roundabout, with Radder explaining that a slip lane would be added specifically for southbound on-ramp access. The council ultimately approved the ordinance unanimously, with Councilmember Mutchler moving for adoption and Councilmember Porter seconding. Construction is expected to begin in summer/fall 2026, pending completion of permitting and right-of-way acquisition. ## Public Concern Over Mixed-Use Development The evening began with David Foreman's pointed public comment about proposed rezoning in the comprehensive plan update. A resident of Pacific Highlands Avenue, Foreman expressed deep concern about a 5-acre parcel immediately north of Cascadia Elementary School that appeared slated for mixed-use commercial (MXD) zoning in the draft comprehensive plan. "I would suggest that creating a parcel with this zoning that's next to a school and next to a future school land that's proposed to be zoned as PI and then is adjacent to single family neighborhoods on both sides, East and West," Foreman argued, "isolated then this little 5 acre parcel from any other commercial development is seriously problematic." His concerns centered on safety implications for schoolchildren, noting that his neighborhood sits within the school's speed zone and serves as a regular loading and unloading area for parents. "There's always young children walking the sidewalks as they come and go to school and other activities in our neighborhood," he observed, worried about increased commercial traffic. Foreman's presentation took on a more personal tone as he invited council members to visit his property to understand the impact firsthand. "Before any decision is made on this particular parcel and its potential rezoning, I would invite you to walk the land. To see with your eyes," he said, asking them to observe the area during the 3:30 PM school dismissal time and to stand on his deck to see the mountain views that development would obstruct. The resident concluded with a balanced perspective, acknowledging that "growth and change is inevitable" while emphasizing the importance of "the right change for our neighborhoods and our schools." His testimony highlighted the tension between planned development and neighborhood character that faces many growing communities. ## Grandview Road — The Growth Management Challenge The evening's most complex and far-reaching discussion centered on Administrator Jori Burnett's comprehensive presentation about Grandview Road development and sewer infrastructure. This presentation attempted to place a potentially $15-20 million sewer extension project within the broader context of the city's growth obligations under the Washington State Growth Management Act. Burnett began by acknowledging the challenge facing staff and council: "Sometimes it's easy for staff and the mayor to bring you a solution before we've really described what we're trying to solve." The Grandview area discussion represented exactly this dynamic—a costly infrastructure proposal that required deep historical and regulatory context to understand. ### Historical Context and Growth Management Obligations The presentation traced the area's development back to 1987 aerial photographs showing largely undeveloped land around the Grandview interchange. When the Growth Management Act was established in 1991, this area was designated as urban growth area (UGA), with Whatcom County subsequently rezoning it from rural to industrial uses in anticipation of eventual city annexation. The statistics Burnett presented were striking: over 30 years, approximately 1.7 million square feet of industrial development has occurred in the unincorporated Grandview area—representing 17% of all industrial construction in Whatcom County during that period. Remarkably, "not a single square foot of this 1.7 million square feet is on municipal sewer" and none is "on a public water system that was designed to support such growth." This development occurred entirely on the expectation that the area would eventually become part of the city with urban infrastructure. As Burnett explained, "All as a result of this being designated for future city limits in the urban growth area." The Growth Management Act requires cities to plan for urban governmental services, specifically including sanitary sewer service. Burnett cited RCW requirements that cities must "demonstrate that such facilities will be adequate to serve development at the time the development is available for occupancy." The current situation, with 1.7 million square feet of development lacking proper urban services, represents a clear disconnect between planning and implementation. ### Economic Analysis and Development Potential Two major studies supported the case for infrastructure investment. The BERK Consulting analysis, funded through a state Community Economic Revitalization Board planning grant, concluded that sewer extension could support creation of over 1,300 jobs and generate over $900 million in business income over 20 years. Burnett was careful to temper expectations: "No one has a guarantee. No one has a crystal ball." However, he argued that demand exists and that extending sewer would create "significant opportunities for development." The Port of Bellingham's parallel Industrial Lands Study revealed concerning regional capacity constraints. While Whatcom County has over 13,000 acres of industrial land, only 184 acres county-wide are considered "fully serviced in close proximity transportation." By fully servicing Grandview, the city could more than double this regional capacity. Tyler Schroeder from the Port provided concrete examples of demand, citing "two, if not three specific examples within the last six to nine months" of Canadian companies seeking 5-10 acre adequately serviced properties. One prospect involved a company looking to invest $24-30 million in a 48,000-60,000 square foot facility and add 150-200 employees. ### Infrastructure and Investment Strategy Public Works Director Kevin Renz detailed the proposed sewer alignment, which would utilize a combination of pump stations and gravity lines running from Grandview down Malloy Avenue to connect with existing city infrastructure. The alignment would require four pump stations and would provide service not only to the Grandview and Malloy areas but potentially to the broader "Cascadia" residential growth area west of Malloy. The city has already made infrastructure investments anticipating this project, including oversized sewer lines along Thornton Road and Malloy Avenue improvements. Renz emphasized that keeping the alignment within city right-of-way avoids wetland issues and private property acquisition challenges that alternative routes would face. ### Fiscal Considerations and Ratepayer Impact Councilmember Mutchler raised critical questions about ratepayer impact. Burnett explained that the sewer extension is already factored into existing utility rates and that once operational, additional customers would spread costs over a larger base. "You're spreading out the overall costs over a larger group of people," he noted, comparing Ferndale's situation to Bellingham's lower per-capita rates due to their larger customer base. The city has already expanded wastewater treatment plant capacity with this growth in mind, meaning no immediate need for additional treatment facility construction. Burnett acknowledged the upfront investment required but argued that expanded service area would ultimately benefit all ratepayers through economy of scale. ### Regional Economic Development Context The discussion highlighted Ferndale's position within broader regional economic trends. Schroeder described how vacancy rates for industrial space have dropped to 2.2% regionally compared to a typical 6-7%, creating intense competition for available sites. Lower Mainland BC real estate prices are "about 3 to 4 times per square footage" higher than Whatcom County, making the area attractive for Canadian companies seeking U.S. operations. The conversation revealed the challenge of retention versus attraction in economic development. Both local companies seeking to expand and Canadian firms exploring U.S. operations face limited options, often looking to Snohomish County or other regions when local sites aren't available. ### Alternative Approaches and Political Realities Councilmember O'Leary pressed for discussion of alternatives, leading to consideration of whether industrial zoning could be relocated closer to existing services rather than extending services to current industrial zones. However, Schroeder and Burnett noted that Grandview's advantages—freeway access, rail proximity, large available parcels, and minimal residential encroachment—made it difficult to replicate elsewhere. The political and legal complexity of abandoning the Grandview development strategy was acknowledged but deemed problematic. De-annexing would require a public vote (as Blaine recently experienced) and could trigger legal challenges from existing businesses and property owners who invested based on UGA designations. ### Community Growth Philosophy The presentation concluded with Burnett's broader philosophical framework about municipal responsibility in economic development. He argued that cities must increasingly serve as "first money in" to create value and attract private investment, rather than simply reacting to development proposals. "It would be very easy for Staff and the administration, the Port, property owners, or others, to argue that the development potential of the area will truly result in an 'if you build it they will come' scenario," Burnett acknowledged. "It is just as easy, though Staff would say is less supported by available information, to say that growth will happen (or not) anyway." The discussion recognized both opportunity and risk, with Burnett noting that "more than likely what's going to happen is within a 20 year period, there's probably going to be at least one recession. Maybe 2." However, he argued that over time, the area's advantages—proximity to Canada's third-largest metropolitan region, transportation access, and development capacity—created compelling long-term prospects. ## Resolution — Seahawks Support In a lighter moment, the council approved Councilmember Mutchler's resolution recognizing the Seattle Seahawks' successful 2025 season and temporarily renaming Ferndale as "Hawkdale" through Super Bowl LX on February 8, 2026. The Seahawks' 14-3 record, NFC Championship victory, and upcoming rematch against the New England Patriots provided occasion for community celebration and regional pride. ## Consent Agenda & Routine Business The council efficiently processed routine business through the consent agenda, including January 20, 2026 meeting minutes, payroll authorization, and claims from both December 2025's open period and January 2026. These items passed unanimously without discussion, reflecting the Finance & Administration Committee's prior review and recommendation. ## Closing & What's Ahead The meeting concluded with brief department reports, including updates on the Civic Campus parking structure construction and an upcoming Police Department open house. The evening's discussions set the stage for continued community dialogue about growth management, infrastructure investment, and Ferndale's evolving identity as a regional community. The contrast between the celebratory affordable housing update and the complex infrastructure challenges facing the Grandview area captured the full spectrum of municipal governance—from partnership success stories to long-term strategic planning requiring significant public investment and political will. As council members and staff departed into the February evening, the fundamental questions raised by growth—how to plan for it, fund it, and shape it to benefit existing residents while accommodating newcomers—remained central to Ferndale's ongoing civic conversation.