Northwest Washington continues to grow
Commercial and residential projects flood region
by Dana E. Blozis

Looking at Blaine’s recent expansion – which includes massive residential and commercial growth, quickly escalating real estate prices and a comprehensive plan aimed at revamping its look and preparing for even more future growth – is not quite a microcosm of Northwest Washington’s growth, but it’s not far off.
Realtor Mike Kent of Windermere’s Semiahmoo office said a number of condominium projects are planned for Blaine along Peace Portal Drive. After tearing down the Westview Motel site in April, developer Joel Douglas of Harbor Lands Company will build a condo community called Seascapes. In addition, Douglas has plans to build The Palisades, a project planned for the west (water) side of Peace Portal Drive near the marina.
Closer to downtown, the City of Blaine plans to build a $1.5 million boardwalk along the western side of Peace Portal Drive. As a part of the boardwalk, developers Rick Osborn and Doug Romano plan to build Harborside Plaza, a multi-story project which will serve as the anchor on the east end of the boardwalk.
Terry Galvin, community development director for the City of Blaine, is excited about the boardwalk as well as the city’s downtown revitalization project.
“We’ve worked hard to clean it up and beautify it,” Galvin said of Blaine’s efforts to revive the downtown. “I’m really proud of the work the city has done.”
Throughout Northwest Washington, residential housing developments are underway, particularly in designated Urban Growth Areas. In addition, commercial properties are expanding with the planning of new retail centers and business parks throughout the region. In short, the region’s real estate industry, developers and city municipalities are working hard to capitalize on the large number of residents flocking to the area.

“North (Whatcom) County”
While Blaine, Semiahoo and Birch Bay have always been popular tourist spots, the hope is that pending projects will offer needed services and shops to area residents and tourists, provide additional employment opportunities and make Blaine a more viable location for year-round, coastal living.
Putting in this infrastructure takes creative investors, developers and realtors. A great example is The Palisades project, a the three-story building with plans for 18 two-bedroom condominiums. In an unusual twist, the bedrooms in the condos can be sealed off so they can be rented out as motel units. Units with waterfront views could be priced from $300,000 to $400,000, making them among the pricier properties in Blaine. The proposed design will be turn-of-the-century to fall in line with Blaine’s new historic downtown façade.
The City of Blaine’s boardwalk is designed to be the cornerstone of the central business district and will set the tone for the historic theme. It will stretch two blocks and provide a pedestrian path linking downtown, the marina, Marine Park and Blaine’s Wharf.
Four commercial buildings will be situated directly behind the boardwalk and will feature retail shops. Originally slated to open on the Fourth of July, construction has been delayed due to condemnation proceedings on one of the site’s existing properties, although city officials plan to begin construction before the condemnation proceedings are finished. Osborne and Romano’s Harborside Plaza also ties into the downtown renovation. At 3,500 square feet, the first floor will feature retail shops and possibly a restaurant or café, while the second and third floors will offer condominiums ranging from 1,010 to 1,500 square feet with prices beginning at $275,000. The top floor will be dedicated to a 2,200 square foot penthouse priced at $600,000. Parking, storage and office space will be available underground.
In addition to these projects, Kent reports the construction of the government service building is near completion. Next to Nature’s Path, the new building will serve as a regional office for Homeland Security, bringing approximately 100 jobs to the area. At the former Washington Net Building site there are plans for a 36,000-square-foot manufacturing facility, which will be built adjacent to the senior center. It is estimated this new facility will bring 20 full-time jobs to the area.
From a residential perspective, North County is booming with a handful of developers planning or breaking ground on projects in the area:
• At a 450-acre development formerly known as Vicwood, in Blaine, Bellingham developer Ken Hertz hopes to build more than 600 homes on the property in planned phases, with 200 acres remaining undeveloped.
• Developer Doug Connelly plans to build 100 homes on a site planned just off H Street.
• On tap at the Semiahmoo Spit is the Seagrass Cottages project. Owned by the Trillium Corporation, this 22-acre development could have up to 36 duplex cottages and a total of 72 units. At three neighborhood meetings, however, Trillium has met significant opposition from area residents who want the Spit to remain undeveloped. Concerned about increased traffic, environmental impacts, and the destruction of a commonly enjoyed environmental haven, residents hope to find a buyer for the property who will allow it to remain undeveloped.
Further south, in unincorporated Birch Bay, a number of developments are either planned or underway:
• Across from Birch Bay Village, Horizon, a mixture of 440-single-family detached homes and condominiums, is planned. Currently in the permitting process, the developer will hold neighborhood meetings in the near future to discuss his plans with area residents. Of particular interest is the fact that the project will provide a much needed connector road from Birch Point Road to Lincoln Road.
• In recent weeks, area officials broke ground on The Sandcastle, a Goldstar Resorts development. Next to Trend West on Birch Bay Drive, this commercial project will feature time-share/fractional ownership units, retail shops, The Dry Dock Restaurant, and Whisper on the Bay, a full-service day-spa owned by Ellen Shea.
• At the south end of the bay, at the corner of Jackson and Bay Roads, is the Homestead Development. Phases one and two of the project included the sale of more than 100-single-family detached homes. Developer Skip Jansen of JIJ Corporation is ready to begin phase three of the project, which Kent said should sell very quickly.
“I’m told this is one of the most successful developments Homestead has ever done,” Kent said.
• Abutting Homestead is Baycrest North, a new development with 130 homes planned. Kent said six homes were spoken for the first day the sales office opened.
• Located on a plateau above Birch Bay Drive, the Birch Bay Resort Park was purchased by a group of investors from Las Vegas. While details have not been disclosed, Kent said this mixture of commercial and residential properties in Birch Bay is “a real pivotal piece” to the development. Kent said the development will not directly affect traffic on Birch Bay Drive, a main thoroughfare and source of concern for area residents.
Kent said both residential and commercial growth is good for the area, bringing more full-time residents to the Blaine-Birch Bay area.
“We have more year-round commerce,” Kent said of the growing area. “Retailers are able to stick around. The area is becoming more ‘resident dependent.’”
Interestingly, Kent said the majority of full-time residents moving to the area are coming from southern California and Seattle to enjoy a more rural lifestyle. More Canadians are also moving to the area, adding a little international flavor to both the part- and full-time populations.

Ferndale adds largest mall in Whatcom
Further south, in Ferndale, the Pioneer Plaza, a major commercial and residential center, plans to break ground in the coming year. The center, planned to be built on 100 acres of land south of Axton Road and east of Interstate-5, would include one million square feet of retail and office space along with 160 condominium units.
Ferndale Associate Planner Michael Jones said the Pioneer Plaza submitted its project application on April 11. Following a review of the application, environmental assessments must be completed before the plan is brought before the Planning Commission.
At that point, a series of public hearings will be held before the plan is ultimately submitted to the Ferndale City Council for review. While the project’s proposed timeline is not yet known, the project stands to bring significant commerce to the area.

Greater Bellingham’s growth
In Bellingham, the Whatcom County seat, a number of major developments are in the works, many hotly contested by local residents. City planners, however, have a plan to infill and developers are capitalizing with mixed-use buildings that feature retail and office space on the bottom floors and residences on the upper floors.
In Fairhaven specifically, these mixed-use buildings are matching architectural styles while providing both residences necessary for the growth explosion and business space to serve the areas residents. Here is a sampling of projects in Fairhaven:
• Located at the corner of Old Fairhaven Parkway and 12th Street in Fairhaven, 12th Street Village is well underway. This 20,000 square foot facility features four condominium buildings and two commercial buildings with requisite parking. The mixed-use center will feature 30 upscale condominiums, office, retail and restaurant space and an enclosed courtyard.
• Also under construction is the Harris Square project in Fairhaven. Developed by Troy Muljat this 100,000 square foot multi-story building is situated between Harris and McKenzie Avenues and 9th and 10th Streets. With three buildings and underground parking, Harris Square will offer both residential and commercial opportunities.
• At another project, behind the Fairhaven Market at the corner of 13th Street and McKenzie Avenue, designers want to bring another multi-use building to the area. Still in the planning and design stages, a 26,000 square foot building is anticipated with space for commercial use as well as multi-family housing.
With these projects, and others planned for the future, parking has become a problem for patrons and workers alike. To help alleviate the problem, concerned developers, business owners and real estate agents have pooled their resources to provide temporary parking for 70 to 80 cars just north of Mill Avenue between 10th and 11th Streets.
In addition to the mixed-use buildings in downtown Fairhaven, developer David Edelstein recently announced plans to build up to 739 homes along Chuckanut Drive. The development, Fairhaven Highlands, is expected to offer a mixture of single-family homes and condominiums in buildings that could be as tall as 10 stories. Although the project is in the initial planning and public notification stages, area residents are concerned about its impact on the community, specifically traffic and environmental issues.
Edelstein said, however, he chose to develop the area because of its convenient location, proximity to arterial roads and the housing shortage in the area. The future of the project is not yet known, but the City of Bellingham has promised to commit a portion of its Web site to providing updates on its progress.
Finally, as noted in the April 2005 issue of Northwest Business Monthly, the Bakerview-Hannegan industrial area continues to develop commercial properties. In addition to buildable lots with Hannegan Road frontage, Henifin Construction plans to build a small industrial park between Builders Alliance and Bellingham Millworks. With two phases planned, Jaime Henifin hopes to have the first 20,000-square-foot building operational by the end of the year.

Easier development adds to Skagit’s growth
Whatcom County is not the only area subject to growth – Mt. Vernon is experiencing more residential and commercial expansion than ever before. Due in part to the commitment made by the city, it is now easier to develop properties than it was in the past.
Both residential and commercial development highlight the growth in Mount Vernon:
• In March, Cedar Heights LLC proposed a 221-lot planned unit development of 41 acres of second growth forestlands. Located south of Division Street, north of the Eaglemont neighborhood, and east of Montgomery Place, lot sizes will range between 4,240 and 9,550 square feet, along with 7.5 acres of developed open space.
• A smaller residential development, Skagit Highlands, is also in the application process. The proposed subdivision is just more than 12 acres and will offer 69 lots ranging in size from 3,900 to 5,200 square feet. Situated within the city limits, the site is located west of the eastern limits of Mt. Vernon. Already included as a part of the city’s master plan, additional infrastructure will be needed to serve the subdivision.
• From a commercial perspective, Mt. Vernon is the home to the new Advantage Business Park on George Hopper Road. With phase one completed, the owners hope to completely occupy the first 16,000-square-foot building before adding two more identical buildings on the adjacent property. With space ranging from 1,000 to 16,000 square feet, the offices are considered upscale and are located in a growing area. Occupants first moved into the building in the fall of 2004, with additional office space in phase one still available.
Margaret Fleek, planning director for the city of Burlington, reports there are also a number of projects in progress in her area:
• From a residential perspective, a 60-unit condo project is planned for Burlington Hill.
• From a commercial standpoint, Advanced H20 is building a 200,000 square foot water- bottling warehouse on Port Drive. The project is currently in the permitting process.
• Burlington Crossing, a major retail center, is entering phase two and is moving forward to build the remainder of the site.
• Along Burlington Boulevard, on the property previously occupied by the VFW, retail locations have been discussed including a four-story Hampton Inn, two banks and an espresso stand.
“Burlington is in the business of business,” Fleek said of the town, which boasts 50 percent of its zoning as commercial and industrial. “We give it a lot of time and effort, because it is important to our community.”
Anacortes, on the other hand, is not experiencing a lot of growth currently, said Planning Examiner Don Measamer. However, there are a few projects in the works:
• In Sunset Cove Estates, a three-story, six-unit condominium development is planned. With two units per floor, each building is 18,000 square feet in size. The developer picked up the permits last week and is ready to begin building.
• From a commercial perspective, Western Washington University is expanding its Shannon Point marine education center in Anacortes. With the addition of 11,000 square feet to its existing facility, WWU will add lab space to the education center. Measamer also anticipates the submission of building permits for a local aircraft hangar, but he has not yet received applications.
The bottom line for Northwest Washington is that growth is coming and nothing can be done to stop it. With the need for growth and the scarcity of buildable land, it is important that developers, city planners and area residents recognize each sides’ concerns. Only by working together to achieve reasonable levels of housing and commercial development will the region succeed in preserving the environment while allowing each separate community to thrive.