Second phase of downtown Bellingham affordable housing project inches closer to reality
The second phase of an affordable housing and commercial project is on its way to Bellingham’s waterfront district, with construction expected to begin this fall.
Phase II of the Millworks project is expected to break ground in October at 110 W. Laurel Street on the historic former site of the Georgia-Pacific West pulp and paper mill.
The development will include a seven-story mixed-use building with 2.5 stories of commercial space and five stories with a total of 109 affordable residential units. It’s expected to be complete by January 2028, planning documents show.
Community project specs
The commercial space in the building is designed to support a “food campus” with the intention of strengthening Whatcom County’s food economy by helping local farmers create products and supply restaurants. A commercial kitchen will be meant to support small business owners running operations like food trucks and catering services as well as other nonprofit food programs.
This building is also designed to include the Western Washington University Small Business Development Center, a statewide employee-ownership resource center, co-op office spaces, and a public gathering and event space, according to the Millworks project website.
Structured parking for more than 180 vehicles is expected to be built under the building and partially occupy the first two floors, planning documents indicate. About 100 bicycle parking spaces are also anticipated to be provided with the project.
This second phase of development will complement the already complete Millworks Phase I, which features 83 units of affordable housing and a six-classroom YMCA early learning center designed to support about 100 kids in early childhood education. Construction on Phase I of The Millworks Project began in late 2022 with the first residents moving in by April 2024.
Cleanup makes way for new beginnings
The development site was formerly used for decades as storage for paper mill byproducts, which caused significant contamination to the soil. However, through a partnership with the State Department of Ecology, the site was cleaned up and prepared for development.
The Millworks Project was the first Whatcom County project to participate in the state’s new program focused on environmental cleanup for housing. Phase I of the project was estimated to cost about $37 million and was largely funded through low-income housing tax credit financing.
The Millworks Project is one of several large projects underway or planned along Bellingham’s Waterfront District as part of a greater redevelopment vision, including three luxury condo buildings nearing completion and the planned BoardMill Block project which is expected to feature a four-story boutique hotel, a seven-story mixed-use residential building and a five-story mixed-use residential and parking building.
Meeting the affordability need
The state established targeted housing goals for every county in Washington over the next 20 years. Between 2024 and 2044, Whatcom County is estimated to need almost 35,000 new housing units. About 22,000 of those units, more than 60%, need to be affordable, according to the City of Bellingham.
To be considered affordable, housing costs can’t exceed 30% of a family’s gross income and must serve families making 80% or less of the area median income, according to the city.
The median household income in Whatcom County is about $74,884, according to the latest U.S. Census data.
Bellingham makes up about 48% of the housing production in Whatcom County. So the city needs to produce almost 17,000 total housing units to help meet the goal. More than 10,000 of those need to be affordable. To stay on track, the city needs to build more than 500 affordable housing units every year.
