Real Briefings

Bellingham City Council

BEL-CON-2026-10-05 October 05, 2026 City Council Regular Meeting City of Bellingham
← Back to All Briefings
Oct
Month
05
Day
—
Min
Published
Status

The Bellingham City Council held its regular meeting on the evening of October 5, 2026, following a day of committee meetings and a special morning budget work session. The council took formal action on three ordinances and one interagency agreement, all of which passed unanimously 7-0. The most consequential vote of the evening — and arguably the most consequential policy development in recent months — was final passage of the home occupation ordinance (AB 25074), which liberalizes rules for home-based businesses throughout the city. The ordinance is the first regulatory step in a deliberate "commercial continuum" strategy aimed at eventually allowing neighborhood-scale commercial uses in residential zones. The other major topic dominating the evening was the city's fiscal situation. Council held its first public hearing on the preliminary 2027 budget (AB 25084), which projects an $8 million general fund deficit and relies heavily on the hoped-for passage of a Regional Fire Authority (RFA) ballot measure in a February 2027 special election. The RFA — a proposed merger of Bellingham Fire and Whatcom County Fire District 8 into an independent government agency — drew pointed criticism from public commenters who questioned its regressive fire benefit charge and argued that a levy lid lift would be a simpler and less burdensome alternative. Deputy Administrator Forest Longman defended the RFA approach as the only mechanism offering durable, long-term financial stability. Council also received committee reports on: the Bellingham Mitigation Bank (a decade-long environmental project now ready to open); updated ambulance service rates (unchanged since 2014 except for CPI adjustments); a five-year extension of the Comcast cable television franchise; a draft RFA plan reviewed in Committee of the Whole; and informational presentations on the Whatcom Racial Equity Commission annual update and a new Drone as First Responder (DFR) program proposed by Bellingham Police Departm

**1. AB 25074 — Home Occupation Ordinance (BMC Titles 13, 20, and 21)** - **Vote:** 7-0 (first and second reading; final passage) - **Motion/Second:** Council Member Daniel Hammill / Council Member Michael Lilliquist - **Staff recommendation:** Approval, with revisions noted in staff memo correcting two errors identified after the Planning Commission hearing - **Council action:** Approved as presented, including staff-identified corrections - **Key specifics:** Expands home-based business permissions to include operation in accessory buildings; increases employee limit from 1 to 3; allows on-site retail sales of products made at the business; raises maximum square footage to 500 sq. ft. (capped at 50% of residence gross floor area); creates a tiered permitting structure (permit-exempt, administrative, and discretionary); exempts businesses under 500 sq. ft. from transportation concurrency fees; prohibits fleet dispatch centers and outdoor storage; requires operations plans for disc…

About 49% shown — sign up free to read the rest Sign up free →
**Home Occupation Ordinance — AB 25074** The home occupation ordinance amends Bellingham Municipal Code Titles 13, 20, and 21 to modernize rules for home-based businesses in residentially zoned areas. The changes advance the city's "commercial continuum" strategy — a phased approach to introducing commercial activity into residential neighborhoods, beginning with in-home businesses, progressing to uses in accessory structures, and eventually allowing neighborhood-scale corner stores and retail. Planners Sydney Prusac and Sarah [last name not provided in transcript] presented the item, with Planning and Community Development Director Blake Lion providing context. Prusac explained that the current code requires home businesses to operate strictly inside the dwelling, prohibits exterior modifications, limits employees to one, and bans retail sales. The proposed changes were informed by research from the American Planning Association recommending a tiered regulatory approach: low-impact uses (such as tutoring or massage therapy) remain easy to permit, while higher-impact uses (such as woodworking) require a discretionary permit with public notice. Staff emphasized that the 500-square-foot threshold was chosen deliberately because it aligns with the building code's commercial code exemption, making the path to permitting cheaper and simpler. The requirement that residential use remain primary was flagged repeatedly as essential — both by staff and by Council Member Lilliquist — to ensure home businesses do not drive out housing. Staff also noted that an occupant requirement had been inadvertently omitted from the post-Planning Commission draft and was restored before the council vote. Without it, the city risked permitting properties for commercial lease rather than residential occupancy. Council Member Lisa Anderson asked about how structural enlargements for home occupations would interact with impact fees. Staff explained that the home occupation permit must be issued before the building permit, and fees would be calculated as part of the building permit process with the home occupation context informing what is charged. Council Member Jace Cotton asked about the relationship between the transportation concurrency exemption and transportation impact fees more broadly; staff clarified that the $1,700 concurrency certificate was a historical barrier removed under the new ordinance for businesses under 500 sq. ft. Council Member Lilliquist expressed initial surprise that the ordinance did not address neighborhood-scale corner stores (the "Super Duper Teriyaki in Happy Valley" model he and others expected from the mayor's economic development executive order), but acknowledged that this ordinance was explicitly described as Step 1 of a multi-phase process. He praised the primary-residential-use requirement and the prohibition on outdoor storage as appropriate protections but flagged parking as a likely public concern — noting, however, that a separate ordinance already eliminated citywide on-site parking requirements, making specific parking rules for home occupations redundant. Anderson also asked whether the property owner consent mechanism for renter applicants was adequate. Staff noted that land use applications require both applicant and property owner signatures (or a consent representation), and that the self-limiting nature of business formation makes this less likely to be gamed than short-term rental listings. The one public …
About 40% shown — sign up free to read the rest Sign up free →
**Brian Armstrong** (public commenter, unaffiliated): - Greenways Advisory Committee (GAC): Argued that Greenways levy funds are being improperly redirected to salaries, sports facilities, and projects unrelated to the voter-approved purposes of trails, habitat, and climate resilience. Alleged that a staff member (Nicole Oliver) attempted to include ball fields in the definition of "greenways." Argued that mayoral appointment of all GAC members creates structural conflicts of interest. Named Carrie Burnside as a qualified housing advocate wrongly excluded from the landlord-tenant advisory work group. - Budget: Characterized the RFA as a repackaged version of the public safety sales tax — a way to free up general fund money rather than make hard cuts. Opposed new taxes; urged council to lobby for statewide single-payer healthcare as a structural fix for local government budget pressures. **Todd Legacy** (public commenter, unaffiliated): - RFA/Budget: Challenged Deputy Administrator Longman's characterization of property tax revenue growth, citing city financial reports showing property tax revenues rose from $17.4 million (December 2024) to $20.7 million (December 2025) — a 10-plus percent increase driven by new construction. Argued the fire benefit charge is regressive — charging a 2,000 sq. ft. home in Roosevelt the same as one in Edgemoor. Contended a levy lid lift (50 cents per $1,000 would yield $13 million annually…
About 49% shown — sign up free to read the rest Sign up free →
**Sydney Prusac, on the purpose of the home occupation ordinance:** "It doesn't really make sense if eventually we allow a full-service restaurant in a residential area and then we prohibit a home-based hair salon from selling shampoo with the business." **Sarah [last name not provided], on the 500-square-foot threshold:** "The building code actually exempts home businesses less than 500 square feet from having to comply with commercial building code. So it sort of guides businesses towards a…
About 49% shown — sign up free to read the rest Sign up free →

- **October 12, 2026 (Monday):** Indigenous People's Day celebration, 6–8 p.m. (doors at 5:30 p.m.), Lummi Nation School. Sponsored by the Community Consortium for Cultural Recognition. - **October 13–16, 2026:** Whatcom Housing Alliance Housing Week — 17 events, tours, and workshops including a tour of North Haven Tiny Home Village. More information: Whatcom Housing Alliance and Sustainable Connections websites. - **October 14, 2026 (Wednesday), 6:00 p.m.:** RFA Planning Committee public hearing on the fire benefit charge, Council Chambers, City Hall. - **October 19, 2026 (Monday):** Next City Council regular meeting, including: - Morning budget work session covering public safety (police, fire, municipal court) — AB 25085 continued - Revenue forecast public hearing - Three public hearings on ballot measure resolutions: 1. Resolution to o…

About 50% shown — sign up free to read the rest Sign up free →
**After this meeting, the following is materially different:** 1. **Home occupation law is changed.** Bellingham Municipal Code Titles 13, 20, and 21 now permit home-based businesses to operate from detached garages and accessory structures, employ up to three people, sell products made on-site, and expand the physical footprint of the business space. Businesses under 500 sq. ft. are exempt from transportation concurrency fees. Before this meeting, home businesses were confined to the interior of the dwelling, limited to one employee, and prohibited from retail sales. 2. **Bellingham Mitigation Bank is formally authorized.** The interagency agreement between the city, Army Corps of Engineers, and Department of Ecology is approved and the mayor is authorized to execute it, completing a 10-year process. The bank can now proceed toward its February–March 2027 opening. 3. **Ambulance service rates are updated.** Fire department billing rates are increased for the f…
About 50% shown — sign up free to read the rest Sign up free →
null…
About 100% shown — sign up free to read the rest Sign up free →
null…
About 100% shown — premium members only Upgrade to premium →

Share This Briefing