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Real Briefings

Hearing Examiner

BEL-HEX-2024-09-25 September 25, 2024 Public Hearing City of Bellingham
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The Bellingham Hearing Examiner held a public hearing on September 25, 2024, to consider two related applications for property at 2912 Birchwood Avenue: an innovative affordable homeownership project under the city's incentive program (SUB-2024-006) and a conditional use permit for the existing City Sprouts Farm agricultural nursery (USC-2024-012). The applications, submitted by Kulshan Community Land Trust (KCLT), propose developing 9 affordable homes (18 total units including ADUs) while maintaining the existing one-acre educational farm operation. The project represents a significant test of Bellingham's affordable housing incentive program, which allows modifications to standard development regulations to increase affordability. The proposal includes attached and detached homes designed for households earning 80% or less of area median income, with permanent affordability restrictions through condominium covenants. The City Sprouts Farm, which has operated on the site since 2018, would continue serving the Birchwood neighborhood through food access programs and educational activities. Three neighborhood residents testified in opposition, raising concerns about coal mine hazards, parking adequacy, tree removal, and impacts to neighborhood character. Staff recommended approval with conditions, while the applicant team presented detailed testimony about community engagement, design features, and compliance with approval criteria. The hearing examiner will issue a written decision after reviewing all testimony and evidence. The record was held open for potential post-hearing written comments from those experiencing technology difficulties.

No formal votes were taken as this was a public hearing before a hearing examiner. The hearing examiner (Sharon Rice) will issue a written decision at a later date after reviewing all evidence and testimony. **Applications Under Review:** - **SUB-2024-006:** Incentive Program for Innovative Affordable Homeownership Projects (9 lots, 18 units total) - **USC-2024-012:** C…

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**Affordable Housing Incentive Program Implementation** Staff presented the project as utilizing Bellingham Municipal Code Chapter 20.29, which allows regulatory modifications to increase housing affordability. Kulshan Community Land Trust qualified as an approved applicant, having previously completed two affordable housing projects through similar programs. The permanent affordability mechanism relies on condominium covenants restricting resale prices and requiring owner-occupancy. **Agricultural Land Use in Single-Family Zones** The conditional use permit addresses the existing City Sprouts Farm, a one-acre educational operation managed by Western Washington University. Staff determined the farm qualifies as an "agricultural nursery" under city definitions, despite growing produce rather tha…
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**Kulshan Community Land Trust (Applicant)** - Ali Taysi (Agent): Emphasized code compliance and affordability mechanisms - Michelle Philhower (Finance Director): Detailed permanent affordability structure serving households at 80% AMI - Dan Welch (Architect): Presented design rationale based on community input and energy efficiency - Ellie Duncan (Farm Manager): Described low-intensity educational farm operations **City Staff (Kathy Bell, Senior Planner)** Recommended approval with conditions, finding the applications meet criteria for both the incentive program and conditional use permit. Accepted applicant's pr…
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**Sharon Rice (Hearing Examiner), on land use decision-making:** "Land use permits are not decided based on how popular they are. The number of people who are for a project, or the number of people who oppose a project. Those numbers of people are not relevant. What's relevant is whether the information shared by the people in this meeting tends to show the project does or does not comply with the permit criteria for approval." **Dan Welch (Project Architect), on community engagement:** "Not m…
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- Hearing Examiner will issue written decision (requested 5 additional business days beyond standard timeframe) - Record held open for 2 business days for post-hearing written comments from those with technology issues - If post-hearing comments received, 2-day response period for st…

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- Record expanded to include additional public comments received day of hearing - Two transportation-related documents added as exhibits (concurrency certificate and public works email) - Applicant presented updated site plan with corrected parking count and sidewalk config…
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--- # Hearing Examiner Weighs Affordable Housing Project Amid Community Concerns **September 25, 2024** — In a packed hybrid hearing at Bellingham City Hall that stretched well into the evening, Hearing Examiner Sharon Rice listened to testimony on one of the city's most complex land use applications this year: a proposal by Kulshan Community Land Trust (KCLT) for an innovative affordable housing development combined with an agricultural nursery on Birchwood Avenue. The project, formally titled the "Incentive Program for Innovative Affordable Homeownership Projects," would create 18 total units — 9 primary residences with attached accessory dwelling units — on what is currently a largely undeveloped 3.6-acre property in the Birchwood neighborhood. The development also includes a conditional use permit for City Sprouts Farm, an existing one-acre educational vegetable farm that has operated on the site since 2018. ## A Test Case for Bellingham's Housing Innovation Rice, an attorney who works as a hearing examiner for Bellingham and about ten other Washington jurisdictions, opened the hearing by explaining that this would be her first encounter with Bellingham's incentive program regulations. "I have a bunch of work in front of this project, but this project is complicated, and we'll be dealing with regulations I don't believe I've dealt with before," she told the packed room. The complexity stems from the project's use of Bellingham Municipal Code Chapter 20.29, which allows modifications to standard development regulations in exchange for permanently affordable housing. KCLT is requesting four key modifications: reduced lot sizes (clustering units on lots as small as 3,000 square feet instead of the standard 20,000), a 50% density bonus allowing 9 units instead of 6, smaller parking stall dimensions, and permission to serve all units via a single private lane rather than individual street frontage. City Senior Planner Kathy Bell explained that KCLT would be only the third applicant to use the incentive program since its adoption in 2004. Previous projects by the same organization included 14 units in Happy Valley (2006) and 3 units on Lafayette Street in Birchwood (2014). "So far, Kulshan Community Land Trust is the only applicant that has brought forward a proposal to use our incentive program," Bell noted. ## The Vision: Community-Oriented Affordable Housing Ali Taishi, the project's land use consultant, walked the hearing examiner through an amb…
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### Meeting Overview Sharon Rice, hearing examiner, conducted a public hearing for two related applications: an incentive program for innovative affordable homeownership projects (9 affordable housing units) and a conditional use permit for City Sprouts Farm agricultural nursery. The hearing combined review of both applications under a single process. ### Key Terms and Concepts **Hearing Examiner:** An appointed attorney who makes final decisions on certain land use applications for the city, operating independently from city staff and elected officials. **Incentive Program for Innovative Affordable Homeownership Projects:** A city program (BMC Chapter 20.29) that allows modifications to standard development regulations to enable affordable housing projects with permanent affordability restrictions. **Community Land Trust (CLT):** A nonprofit organization that owns land in perpetuity while selling affordable homes with deed restrictions to qualified buyers, maintaining long-term affordability. **Conditional Use Permit (CUP):** A special permit required for certain land uses that may be compatible with a zone but need review to ensure they won't negatively impact surrounding properties. **Agricultural Nursery:** The land use classification under which City Sprouts Farm operates, involving growing plants/produce for distribution rather than purely residential gardening. **SEPA (State Environmental Policy Act):** Washington state law requiring environmental review of proposed developments, with determinations subject to court appeal rather than administrative appeal. **Short Subdivision:** A land division creating 9 or fewer lots that requires hearing examiner approval but less extensive review than major subdivisions. **Coal Mine Hazard Area:** Critical area designation for properties above historic underground coal mines with potential structural stability concerns. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Sharon Rice | Hearing Examiner | | Kathy Bell | Senior Planner, City of Bellingham | | Ali Taysi | Applicant representative, ABT Consulting …
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Housing Land Use & Planning Economic Development Government Operations Bellingham Planning Department Birchwood Neighborhood Association City Council City Sprouts Farm Kulshan Community Land Trust Western Washington University Ali Taysi Dan Welch Ellie Duncan Heather Reichendefer Joanne Padgett Kathy Bell Mary Lou White Michelle Philhower Sharon Rice Accessory Dwelling Units Affordable Housing Agricultural Nursery Building Permits Coal Mine Hazards Comprehensive Plan Conditional Use Permit Incentive Program Land Use Policy Neighborhood Character Parking Public Participation Sepa Subdivision Tree Ordinance