On March 14, 2025, Bellingham Mayor Kim Lund joined the Old Town Village development team, City and County Council members, and others to celebrate the start of construction that is expected to bring approximately 800 new residential units and more commercial space to the Old Town District. The private developments will be constructed through eight city blocks over the next 10 years.
“This development is a visionary project that will inject new energy into Old Town, support economic vitality in our city center, and create hundreds of new housing opportunities over the next decade,” Lund said. “As we celebrate the future of Old Town, we also acknowledge the history of this neighborhood and what makes it special. We’re carrying that forward in this project – with the kind of smart growth our community wants and needs.”
While Old Town has the potential to accommodate much-needed housing supply in Bellingham, it has gone underdeveloped for decades. Under the development agreement for the project, this section of Old Town will be transformed into a dynamic area with dense, mixed-income housing and complimentary commercial uses. The pedestrian environment will be emphasized and view corridors to the natural features and historic landmarks will be maintained. The Old Village Trail that connects the Columbia and Lettered Streets neighborhoods to downtown will also be upgraded by the developer.
“Thank you for choosing to invest in an area of our community that has long been overlooked.” Tara Sundin, Community and Economic Development Manager said of the Old Town Village development team. “Your decision to build much-needed housing in this area not only reinvigorates this neighborhood – it also enhances the overall well-being of the people who call this place home while providing a boost to our downtown.”
“The Old Town Village redevelopment is a direct result of a successful public-private partnership with City of Bellingham.” said Curt O’Connor, member of the Old Town Village redevelopment team. “This is important because housing is the foundation to making people feel safe, creating community, and new opportunities. The future of Old Town is bright and is only possible through the hard work of many local stakeholders who have worked collaboratively with us continue the transformation of this special place in Bellingham.”
The Old Town District is one of Bellingham’s seven urban villages, which support vibrant mixed residential and commercial neighborhoods and are critical to helping us meet our community’s housing needs and climate goals. Urban villages comprise less than four percent of the city’s land area but are expected to accommodate 30 percent of future growth.
This project contributes to the supply of housing for moderate-income households and for lower-income households. The Old Town Village development team and Mercy Housing Northwest, a non-profit affordable housing developer, have an agreement in place for Mercy Housing to purchase a parcel specifically for affordable housing.
In 2024, developers completed renovations on 701 W. Holly Street, which improved storefronts. Construction started March 10, 2025, on the first new building, an 84-unit apartment that will be located on the 700 block of Astor Street. It’s anticipated to be completed by summer of 2026.
In addition to the new buildings, this area of Old Town is also undergoing publicly funded streetscape improvements. Together, the City and Whatcom County will invest $5 million in infrastructure.
Learn more about the project on our website.
