Port of Bellingham makes this big change in how the waterfront will be developed
Fed up with delays in redeveloping the waterfront, the Port of Bellingham has reworked a deal with developer Harcourt that could open the door for other developers to make their mark on key parts of the 237-acre property.
At a Monday, Aug. 9, port commission meeting, all three commissioners voted to approve a staff plan to reduce Harcourt’s Master Plan Development area and adjust the project approval process.
No Harcourt representatives spoke at the meeting, which was held online through Zoom. It was unclear whether any Harcourt representatives listened to the presentation, which is now on the port’s YouTube channel.
Harcourt will be allowed to restart its three-building, 94-unit condominium project next to Waypoint Park, but the current draft of the agreement would require at least two of the three buildings to be completed in 24 months. The deal still needs to be approved by Harcourt, the development company that’s based in Ireland.
The new agreement reduces the developer’s exclusivity rights from 18.8 acres to 7.7 acres. Along with the condo project and the Granary Building, Harcourt would continue to have exclusive rights to develop a strip of land on the south side of Granary Avenue. Harcourt would no longer have the exclusive right to redevelop several other pieces of property, including the Boardmill building or the 3.3 acres that would eventually connect with Bay Street.
The deal in its current form would allow Harcourt to get exclusive rights back for the 3.3 acres near Bay Street if it meets the timetable in developing the 7.7 acres in the Granary Avenue area.
The Boardmill and the Bay Street connector areas are key parts of the Waterfront District, and either one has the potential to be centerpieces. Harcourt wanted to convert the former Georgia-Pacific building into a hotel and convention center; ideas for the Bay Street connector include a grand entrance area with a parking structure, residential, commercial or office buildings and a pedestrian-friendly walking area into park trails.
Went into default
The port issued a default notice in June to reclaim the property purchased by the company because it had not hit certain benchmarks, but Port Commissioner President Ken Bell said the decision was made to renegotiate with Harcourt with these new boundaries rather than go into a protracted court battle that would have further delayed redevelopment of the property.
Harcourt purchased the Granary Building and property for the condo project in March 2018 with the idea of finishing the condos by October 2019. In that time, designs for the project changed and there were delays in infrastructure and permitting. Harcourt began construction last summer by digging a hole, but no significant progress was made in the past 12 months.
Harcourt did remodel the Granary Building, which is nearly full with tenants, including the high-tech firm Korber, SconeGrown bakery, Black Fern Coffee, Artivem Mead Co, Honey Salon & The Hive, and The Bellingham Yoga Collective.
During the meeting, the commissioners did not mince words, voicing displeasure about the lack of redevelopment that’s taken place by Harcourt to this point.
The frustration gets “deep under my skin,” said Commissioner Michael Shepard, noting that trying to work with Harcourt has been very difficult throughout his four years in office.
Shepard said the current document represents some good compromises, but if Harcourt would prefer to walk away from this project altogether, he would be willing to consider that option as well.
Commissioner Bobby Briscoe seemed to echo that sentiment, saying it was time for Harcourt to either get it done or go home. Bell added that the treatment from the company to Bellingham has been abysmal.
