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Project Overview
Several new developments are planned for the Old Town District. The private developments will be constructed through eight city blocks over the next 10 years. In all, they will provide approximately 500 new residential units in Old Town, and commercial space.
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, a non-profit affordable housing developer, have an agreement in place for Mercy to purchase a parcel specifically for affordable housing.
Project Status – March 2025
- In 2024, the developers completed renovations on 701 W. Holly Street, which improved storefronts.
- Construction started in March 2025 for 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.
- The City received an application from Mercy Housing to assist with $5 million in capital construction of a 68-residential building. The request will be delivered to Bellingham City Council for consideration in spring 2025.
Background
This project is especially important for our downtown core. The addition of several hundred more housing units in Old Town supports the economic vitality of our city center, promotes walkability and reduces car trips (the project is in close proximity to goods and services).
Old Town has the potential to accommodate some much-needed housing supply in Bellingham, but has gone underdeveloped for decades. The Old Town District is one of Bellingham’s seven urban villages, which support vibrant mixed residential and commercial neighborhoods and are key 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.
Old Town Development Agreements
In response to the goals and policies of the Old Town Sub-Area Plan, the City entered into a Development Agreement with Parberry’s, Inc. and with Old Town Village, LLC and Capron, LLC to create the conditions necessary to transition the north end of Old Town from a light industrial area to an urban village.
