City of Bellingham Community and Economic Development Committee

## 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 ---