Bellingham waterfront developer defaults, loses future contract opportunities, port says
The development company responsible for constructing three unfinished multi-million dollar residential condo buildings along Bellingham’s waterfront has defaulted on its contract, according to Bellingham Port Commissioner Michael Shepard.
Harcourt Developments, the company originally selected in 2015 as the lead developer for about 19 acres of the Waterfront District, will likely lose the opportunity for future development there, Shepard indicated.
The residential units in the buildings, which range in price from $550,000 to more than $3 million, were originally expected to begin housing people by the end of this year.
“The Port and City will continue to work with Harcourt as they complete their partially built residential condo project,” Shepard wrote in a statement on Facebook.
Harcourt representatives could not be immediately reach for comment Thursday evening.
The Port notified Harcourt on Oct. 20 that the company was found to be in eight individual contractual defaults, including failure to complete its first two residential buildings within the contract’s timeline.
When Harcourt was originally selected as the lead developer for the district, it purchased and renovated the Granary Building site. In 2018, the company purchased two additional acres of land near the Granary Building to construct the three luxury condo buildings. In 2021, Harcourt and the Port renegotiated their development agreement after Harcourt missed other contractual deadlines for the initial site construction work and requested an extension.
“The Commission approved an extension, partly due to global challenges related to the COVID-19 Pandemic. The extension was provided on the condition that future deadlines would be met and reduced Harcourt’s development option from 19 acres to 9 acres,” Shepard said.
The Port and city of Bellingham have been working to redevelop a total of 237 acres on Bellingham’s central waterfront that was formerly a pulp and tissue mill. A Master Plan has been approved to create what the Port is calling ‘a vibrant, mixed-use neighborhood with new parks and trails and thousands of new jobs.’ The redevelopment is expected to occur in phases over the next several decades.
“The Port will continue to work with the City and partners to plan development in the Waterfront District that meets community expectations for job creation, housing, recreation, and environmental sustainability,” Shepard said.
This story will be updated
This story was originally published November 2, 2023 at 5:47 PM.
