News - Local News

POSTED: Tuesday, Nov. 11, 2008

Port says it will suspend waterfront project

BELLINGHAM - Relations between the city and the Port of Bellingham hit another new low Monday, Nov. 10, after port commissioners sent Mayor Dan Pike and the City Council a letter in which they declare they will suspend action on a massive waterfront redevelopment project that has been in the works since 2004.

"It is apparent that the city and the port cannot go forward with the waterfront redevelopment project as we originally envisioned," the letter says.

Pike downplayed the significance of the port's letter, saying he remains confident that port and city can agree on a waterfront master plan in December, and then work together to convert an abandoned industrial site into a new waterfront neighborhood with parks, trails, streets, offices, shops, industry, and a satellite campus for Western Washington University.

"The city's direction on the waterfront hasn't changed," Pike said. "We remain fully committed to developing a master plan ... I think we're really close. Part of what's happening is that frustration wells up over time."

But port commissioners and Executive Director Jim Darling say they want a detailed development agreement, not just a master plan.

Port Commissioners Doug Smith, Scott Walker and Jim Jorgensen were reacting to a Nov. 4 letter from Pike, in which the mayor stated that it might be impossible for the city to agree in advance on the kind of detailed development agreement sought by the port for 220 acres of central waterfront, most of which the port owns.

As port commissioners see it, the city had made a commitment to hammer out such a development agreement as part of a December 2004 agreement between port and city. Port officials believe the detailed set of rules to govern development of the site is necessary to provide regulatory certainty for investors and developers.

Port commissioners also object to Pike's comments on the planned density of development - about 6 million square feet of new residences, offices, shops, educational and light industrial buildings. Pike's letter contended that the traffic impacts of that much new development would be unacceptable without intensive new plans to encourage walking, biking and public transit instead of cars.

Port commissioners thought that comment meant that Pike now opposes 6 million square feet of new development.

"We began this significant project in 2004 with a city administration that was geared toward meeting its long-range growth demands through urban infill, and the city and port worked together to define the bedrock principles that would lessen the risk to the taxpayers we serve," the port's letter says.

"Key among those agreements was an understanding that this complex project would require a certain density of development, and predictability in long-range development regulations and infrastructure," the letter says. "The city's new position completely changes this approach."

Pike said that was partly a misinterpretation of his views. He said he still agrees that the 6 million square feet should be built eventually, to create the tax base that will pay back city investment in new streets and parks, as well as the port's investment in environmental cleanup. He just wants to see that density achieved with a lot less traffic.

But he said port commissioners are stating his position on a development agreement correctly: He doesn't believe the city can provide the kind of advance, carte blanche waterfront land use approvals that the port wants.

In an interview, Darling said he doesn't see why such an agreement can't be done.

"We think you can do that," Darling said. "Other projects have done it."

Commissioners say they have yet to decide their next move.

"As a result of these changes, the port must thoughtfully re-evaluate how we will approach managing this asset, which is owned by the taxpayers of Whatcom County," their letter states. "We recognize that we cannot take actions that put their investment at risk, especially during these difficult economic times. We will be conducting that analysis during the next few months."

They state that they will continue to pursue development of the Innovation Zone in the old Georgia-Pacific Corp. tissue warehouse, a partnership attempting to develop uses for composite materials in boat-building. They also state they will move forward on efforts to attract the National Oceanographic and Atmospheric Administration's Pacific operations center. They will work on environmental cleanup on the property, much of which was home to G-P's pulp, chlorine, chemical and tissue manufacturing plants for several decades.

Pike predicted that all the acrimony will blow over in the next few weeks.

"I think there's some misunderstandings," Pike said. "That happens in relationships."