Federal Building Adaptive Reuse Report Final

BELLINGHAM FEDERAL BUILDING
ADAPTIVE REUSE STUDY AND RE-TENANTING PLAN
MARCH 2012
The Bellingham Public Development Authority conducted an initial study of alternatives for the
adaptive reuse of the historic landmark Bellingham Federal Building, “a nearly intact example of
the City Beautiful Movement,” located downtown on West Magnolia Street at Cornwall Avenue.
The primary purpose of this study was to determine which alternative uses might be most
appropriate in the near-term and long-term for this registered landmark. After careful
consideration and a process of elimination, summarized in this report, the BPDA recommends a
proposed alternative with next steps for pursuing the recommendations.
Prepared by the Bellingham Public Development Authority, under the direction of James R. Long,
Executive Director with the assistance of Paul Schissler, a community development planner with
Paul Schissler Associates, Incorporated.
BELLINGHAM FEDERAL BUILDING
ADAPTIVE REUSE STUDY AND RE-TENANTING PLAN
TABLE OF CONTENTS
Cover and Table of Contents Page 1- 2
Executive Summary Page 3
Basic Background about the Adaptive Reuse Study and the Bellingham Federal Building Page 4 - 7
Historic Landmark Status Page 4
Ownership, Past and Present Page 5
Pertinent Documents Page 6
Historic Preservation Plan Page 6
Proposed Renovation Plan Page 7
Project Development Strategy and Fundamental Criteria Page 9 - 16

BPDA Strategic Plan Version 2.0 excerpt Page 9
Twelve Objectives and Criteria for Prioritizing Potential Uses and Tenants
Program Development, General Management and Administration Page 9
Implementation of City Legacies, Policies and Plans Page 10
Compatibility and Compliance with BPDA Plan Goals and Objectives Page 10
Prerequisites, Contingencies and Early Implementation Page 11
Project Interdependencies, Supporting Projects and Facilities Page 11
Programs’ Facility Requirements, Building Suitability and Capital Requirements Page 11
Potential Funding Sources Page 12
Economic Considerations Page 13
Fiscal Considerations Page 14
Environmental Considerations Page 14
Legal Considerations Page 15
Social and Cultural Considerations Page 15
Process of Elimination and Alternative Uses that Fit the Fundamental Criteria Page 17- 28
Bellingham Arts Business Accelerator Page 19
Initial Thinking and Feasibility Page19
Examples of Arts Business Accelerator Programs Page 22
Economic Impacts of the Arts and Creative Economy Page 23
City or Public Office Uses and Flex-Space Page 26
Special Quasi-Public Offices Uses and Flex-Space Page 27
Proposed Implementation Program Page 28- 32

Review and Adoption of the Adaptive Reuse Study and Re-Tenanting Plan Page 28
Leasing Letters of Intent Page 29
Preliminary Architectural and Engineering Studies Page 30
Contingent Lease Documents and Projected lease rates Page 30
Continued Funding Source Research and Applications Page 31
Final Architectural and Engineering Plans Page 32
Construction of Building Improvements, Common Area Improvements, Tenant Improvements Page 32
Federal Building floor plans, current configuration Page 33 - 36
Pertinent documents available at bellinghampda.org/library: BPDA Strategic Plan Version 2.0, Agreement
for Management of Property (Federal Building), Operating Agreement between the BPDA and the City.
BPDA Bellingham Federal Building Adaptive Reuse Study and Re-Tenanting Plan Page 2
Bellingham Federal Building
Adaptive Reuse Study and Re-Tenanting Plan
Executive Summary
The Bellingham Public Development Authority (BPDA) Strategic Plan calls for an adaptive reuse of the
Bellingham Federal Building, the historic landmark managed by the BPDA for the City of Bellingham (City),
under the terms of the “Agreement for Management of Property (Federal Building)” dated March 10, 2010.
The BPDA prepared this Adaptive Reuse Study and proposed Re-Tenanting Plan, with recommendations for
leasing the building for civic and placemaking activities that will “support efforts to sustain and improve
employment and commercial activity in the Central Business District,” which was the highest and best use
cited in the May 2010 BPDA’s Strategic Plan, and to enhance values for surrounding private properties
without competing with the private sector for tenants, described further in the Strategic Plan Version 2.0.
The primary purpose of this study was to compare alternative uses in light of BPDA goals and objective
criteria. After a process of elimination, summarized in this report, the BPDA recommends a preferred
alternative with next steps for pursuing the alternative.
The proposed scenario would add three complementary uses to the building’s current mix of uses:
 The Bellingham Arts Business Accelerator (The BABA), leasing much of the lower floors for a
Western Washington University (WWU)-led program focused on business development in the
economic sector that includes the arts and the creative economy.
 A City office annex or public office flex-space, providing offices on the upper floors to relieve
overcrowding or to make more efficient and functional use of space in City Hall or other public
buildings, with annual leasing costs per square foot roughly equal to the cost of offices in City Hall.
 Special quasi-public offices or flex-space; for example, for the Downtown Bellingham Partnership
to implement the work plan of the proposed Parking and Business Improvement Area.
Funding possibilities have been identified for the capital costs of renovation and tenant improvements:
A. Economic Development Investment (EDI) grants or loans from Whatcom County,
B. ArtPlace Initiative grants of up to $1,000,000 per year or ArtPlace Nonprofit Finance Fund loans,
C. Funders of the ArtPlace Initiative, including leading national foundations, in collaboration with the
National Endowment for the Arts, the White House policy council and seven other federal agencies.
Recommendations for next steps during 2012 - 2014 include:

1. Review and adoption of the Adaptive Reuse and Re-Tenanting Plan,
2. Leasing Letters of Intent,
3. Preliminary architectural and engineering studies,
4. Contingent lease documents,
5. Continued funding source research and applications,
6. Final architectural and engineering plans,
7. Construction of building improvements, common area improvements and tenant improvements.
The BPDA will work with the City to prepare the building for reuse by following the Implementation
Program proposed in this report. This re-tenanting plan will transition this underutilized building into
productive uses leasing space, with lease provisions recovering City Investment, and adding to business
activity and increased asset values for surrounding properties.
Further, this adaptive reuse plan helps propagate the community-building ripple effects that placemaking
analysts like to cite: (a) the arts and the creative economy foster more vibrant, thriving neighborhoods and
(b) create a more connected community, where “diverse groups share common experiences, hear new
perspectives, and understand each other better.” Quoting “The Arts Ripple Effect Report” from ArtsWave (Cincinnati)
Basic Background about the Adaptive Reuse Study and the Bellingham Federal Building
The Bellingham Public Development Authority commenced a study in late 2011 of alternatives for the
adaptive reuse of the Bellingham Federal Building located at 104 West Magnolia Street, on the corner of
West Magnolia Street and Cornwall Avenue in the heart of the Bellingham Central Business District.
The primary purpose of this study was to compare alternative uses of this historic landmark in light of BPDA
goals and objective criteria. After careful consideration and a process of elimination summarized in this
report, the BPDA recommends an alternative with next steps for implementing the recommendations. The
following proposed adaptive reuse plan describes renovation that will prepare the building for new
economic development initiatives and for official, public functions and offices.
Bellingham has a unique opportunity to repurpose this civic building, now nearly vacant for the first time in
a century. The BPDA envisions the landmark becoming a hub of activity, combining public and civic uses on
the upper floors, with much of the lower floors leased to the Bellingham Arts Business Accelerator, a
proposed WWU-led program that would focus on business development in the local creative economy.
The BPDA’s October 2011 Strategic Plan described the potential impact of the Federal Building’s reuse. The
following report and re-tenanting plan go further by describing how the proposed uses will help to energize
this east end of the Arts District, two blocks south of City Hall, on the Cornwall Avenue commercial corridor,
in a section of downtown Bellingham that has potential for much more activity and commerce.
Bellingham Federal Building, circa 1920, facing north at Magnolia Street and Cornwall Avenue
Source: Center for Pacific Northwest Studies, Western Washington University, Federal Building Collection
Historic Landmark status
The building (also known as The Post Office Building) celebrates its centennial in 2013, marking one
hundred years since it first opened for public use. When the Bellingham Federal Building Preservation Plan
was completed in 2005, the architects noted that,
“The Bellingham Federal Building has occupied a significant place in the history of everyday
life in the City since its completion in 1913. At the time, it was a vital monumental building
representing federal presence in a developing region at the country’s western margin. It
remains a nearly intact example of the City Beautiful Movement, the distinctly American
advocacy for Beaux Arts architecture.”
The building is listed on the National Register of Historic Places and the Washington State Heritage Register.
Ownership, past and present
During the building’s first century, the federal government owned and managed the property, filling the
three-story, 43,100 square foot building with federal agencies that included the main Post Office, a federal
courtroom and other federal agencies.
During more recent decades, the number of federal agencies in the building dwindled, and other lessees
came and went. Tenants included Congressmen Al Swift and Rick Larsen, Kelli Linville and other state
legislators, along with occasional private sector lessees.
Bellingham Federal Building, first floor lobby facing east

Whatcom Museum of History and Art Cat. 95.1.4606
By the late 1990s, the property was considered for a “surplus property” designation by the federal
government’s General Services Administration. In general, when federal property becomes surplus to
federal needs, the property is offered to units of local government. The City of Bellingham agreed to take
responsibility for this real estate asset and its remaining leases, taking title in July 2004, and the federal
government agreed to provide a grant of $2.61 million so that the City could undertake an initial phase of
renovation and restoration, related primarily to seismic and code compliance upgrades.
Federal agencies continued their departure after 2004 as expected, and portions of the building formerly
occupied by the Social Security Administration, the Internal Revenue Service and other federal agencies
have remained vacant since. The current uses in the building include a branch US Post Office, the periodic
federal use of the second‐floor courtroom, a NOAA enforcement unit to vacate in June 2012, the BPDA
offices on the third floor, and City Museum storage and City Planning Department storage in the basement.
The federal transfer of ownership by quitclaim deed left the City facing an expensive capital improvement
project. The City accepted an obligation to preserve the landmark for posterity, beyond merely maintaining
the building and preventing its further deterioration. This burden, however, may have a silver lining if the
City can recover its investment by converting the Federal Building from a valuable, underutilized asset into
a productive hub of activity, with ripple effects on the surrounding area’s private and public asset values.
Ownership is expected to remain with the City for the foreseeable future. A sale of the building is severely
constrained by the requirements in the Historic Preservation Plan. Financing for acquisition and renovation
would be difficult for any purchaser to justify based on prevailing market conditions, if net operating
income is expected to repay the investment required to convert the building for Class A office or retail use.
Pertinent Documents
The City of Bellingham officially stepped into the role of owner in July 2004 when the federal government
transferred ownership to the City in a Quitclaim Deed, Auditor File No. 2040603710, containing covenants
and conditions relating to the required historic preservation and potential repurposing of the building.
These requirements were defined further in an April 2005 Memorandum of Agreement executed by the
City, the National Park Service and the Washington State Historic Preservation Office. Among these
stipulations, the City was required to prepare, for state and federal approval, a Bellingham Federal Building
Preservation Plan, which was completed in December 2005, guiding future restoration of the building.
With the creation of the BPDA in May 2008, the City anticipated that the management of the building
would be assumed by the BPDA, with oversight by the City’s Department of Public Work. Details of this
relationship and divisions of responsibilities are contained in the Agreement for Management of Property
(Federal Building) dated March 2010 and in the Second Operating Agreement between the City and the
BPDA, adopted in March 2011. These agreements can be found at http://www.bellinghampda.org/library.
Historic Preservation Plan
Fortunately, much of the building exterior remains historically intact and unchanged from its original
design. Interior spaces, walls and doors have been changed extensively, but the “historic fabric” of the
building remains evident throughout: wooden windows with vintage brass hardware, terrazzo and marble
hallways on the second and third floors, and a courtroom from a bygone era.
A two-story light court in the building, above the first floor workroom’s former skylights, results in the
upper two floors having offices only on one side of each hallway. The tall, vaulted ceiling above the second
floor courtroom further reduces office space on the third floor. As a result, only about 54 percent of the
building’s total gross floor area is net usable, with extensive common areas throughout the building.
The Historic Preservation Plan describes an

extensive rehabilitation effort, going well beyond “The recommended treatment
bringing the building back to usable, leasable approach for the Bellingham
condition. The Preservation Plan architect’s
estimated cost of renovation and restoration was Federal Building is primarily one
$18.4 million (approximately $427 per square of rehabilitation.”
foot), to be completed in three phases over a - Historic Preservation Plan, 2005
number of years.
However, the Preservation Plan does not identify funding sources adequate to cover restoration costs nor
does it address how that level of investment could be justified, over what period of time. It is unrealistic to
expect such high costs to be recovered from net rental revenue; that would be difficult, if not impossible,
unless the funding came from grants. The availability of such grant funding, whether federal, state or
private, is expected to be limited during the foreseeable future.
A first phase of repair and rehabilitation was funded with the initial $2.61 million federal grant provided
during the transfer of ownership in 2004. This grant allowed the City Public Works Department to address
numerous code compliance issues, seismic upgrades and deferred maintenance problems. Most of the
work was completed by 2010. The City also obtained Qualified Energy Conservation Bonds from the
Washington State Department of Commerce to fund installation of new, energy-efficient boilers and a
direct digital HVAC control system in early 2012.
To implement the entire Preservation Plan, the City would be required to launch an additional $16 million
construction project. Even if the City could afford that amount in the foreseeable future, it would be
difficult to justify, given the competing demands on any available funding. Furthermore, recouping an
estimated $16 million from future leasing of the building is improbable. The current, local market rate for
leasable space downtown is a small fraction of the $30 or more per square foot per year that would result
from such deep investments in renovation, even using grants and low-interest loans for construction.
Bellingham Federal Building, first floor lobby facing east, under construction in 1912.
Center for Pacific Northwest Studies, Western Washington University. Federal Building Collection. #16A
Proposed Renovation Plan
A more realistic, manageable scenario, given the present scarcity of funding for public buildings, argues that
the City could make strategic, efficient use of a smaller investment. The renovation work would not
preclude future restoration if and when more funding becomes available. In the meanwhile, renovation
would respect the historic fabric of the landmark so that space in the building can be safely and efficiently
used in as close to an “as-is” condition as possible.
The BPDA will need to secure grant and loan funding for the renovation and will coordinate with the City
Public Works Department to manage construction contracts to prepare the building for specific users, with
repair and restoration of existing site and building improvements where needed, and possibly to include all
or a portion of the proposed lessees’ tenant improvements.
To recoup the investment in renovation and repair, the BPDA
recommends using a break-even approach to establish the annual The BPDA
lease rates, with adequate budgets for reserves and future capital recommends using a
repairs and replacement. The leasable square footage of the
building could recoup the investment if the next phase of break-even approach
renovation is small and if grants and low-interest loans are used. to establish the annual
The building would break even because the future lessees would lease rates.
pay a prorated share of the building’s operating costs, reserves
and any annual debt service incurred for capital improvements.
Using this approach, the BPDA expects the building to become actively used, well maintained and
contributing to the vitality and vibrancy of downtown Bellingham and the region. Also, based on current
estimates and subject to further study, lease rates are expected to be comparable to other downtown
buildings that budget adequately for maintenance, reserves and future improvements.
The BPDA will continue to refine the estimates for renovation costs and lease rates. As shown in the
proposed implementation program, preliminary architectural and engineering studies will commence after
Letters of Intent from future lessees are in hand. A schematic level of design and programming will identify
the scope of renovation for site improvements, common area upgrades and renovation, and for tenant
improvements.
Bellingham Federal Building original elevator, September 1950

Whatcom Museum of History and Art Cat. 95.14.87
Project Development Strategy and Fundamental Objectives
The development approach that the BPDA advocates for renovating and re-tenanting the Federal Building
was included on pages 34 through 41 of the October 2011 BPDA Strategic Plan and focuses on the following
fundamental strategies and parameters:
i. Identify uses that meet identifiable existing or near term needs that could re-tenant 100
percent of the building within one to two years.
ii. Anchor the northern end of the Central Business District with an iconic use related to the
Arts District or the Civic Center.
iii. Minimize or defer major capital expenditures to renovate and reuse the building.
- BPDA Strategic Plan Version 2.0 page 35
This three-part formula is supported by a set of objectives and evaluation criteria, described on the next
several pages, which were refined and clarified during the adaptive reuse study. The criteria allowed the
BPDA to identify and then evaluate the impacts and outcomes of a number of potential activities and
occupants for the building. Using a process of elimination, the BPDA sifted through the alternative uses and
arrived at the proposed alternative for re-tenanting the building.
The following 12 objective criteria formed the basis of the comparative analysis of alternatives for reuse of
the Bellingham Federal Building:
1. Program Development, General Management and Administration

Intent: > limit number of lessees to minimize impact on BPDA and City staffing requirements
> compatibility and potential for synergy with other uses that share the building
> preference for established institutions providing public programs and services
> linkage with other BPDA projects and relationship-building for future collaboration
The BPDA’s assignment is to manage the building on behalf of the City government, not to develop or
manage the programs or projects that will be operating in the building. The BPDA will look to lessees to run
their own programs without further BPDA assistance, much like any commercial landlord/tenant
relationship.
The BPDA must have confidence that potential lessees are strong and reliable, with the capacity to make
productive use of the building, with a commitment to operating their programs in an exemplary manner.
Preferred lessees will also demonstrate the support of their peers, allies and funders, as a further
confirmation of confidence in the decision to move into the building. All uses must also be reasonably
compatible with other uses that share the building, preferably with some potential for collaboration and
synergy that will add to the dynamic in the building and surrounding area.
In an ideal scenario, with a limited number of long-term tenants filling the building, the BPDA’s attention
can focus better on several other concurrent BPDA projects each year, in addition to the ongoing Federal
Building management responsibilities.
With the BPDA’s overall strategy in mind, it also makes sense for the BPDA to prioritize uses in the Federal
Building that create strategic linkages with other BPDA projects and that build relationships among the
entities that might be involved in other future projects undertaken by the BPDA. For example, the BPDA
sees the arts and the creative economy as a vital component and catalyst for enterprises that fit within the
Arts District’s streets and alleys west of the Federal Building, leading to “lower downtown” and the Army
Street project area.
2. Implementation of City Legacies, Policies and Plans

Intent: > contribute to development-related components of the City’s vision documents
> look for multiple potential impacts on other districts beyond the CBD
In its Operating Agreement with the City, the BPDA commits to developing properties in a manner
consistent with City plans and policies. In its updated Strategic Plan on page 3 through 12 of Appendix A,
the BPDA listed official City plans and related objectives where BPDA projects could contribute to achieving
the community vision described in those City plans.
The BPDA assigns higher priority to projects and activities that contribute to achievement of multiple City
goals. Of particular significance for the Federal Building, the proposed BPDA adaptive reuse plan can help
to energize the Central Business District (CBD) in ways that also lead to potential cross-district synergy with
the Arts District, Waterfront District, Old Town and Civic Center subarea plans.
From the BPDA perspective, renovating and repurposing the Federal Building goes beyond merely
implementing plans for the CBD; it also improves the feasibility of, or accelerates the timing of, other
projects in other plans, including future potential in the Waterfront District.
3. Compatibility and Compliance with BPDA Strategic Plan Goals and Objectives
Intent: > implement the BPDA strategy for the building in context of nine BPDA goals
The Appendix of BPDA Strategic Plan V. 2.0 tabulated nine goals and 48 related objectives that were used to
establish priorities among the four projects currently assigned to the BPDA. The BPDA used this objective
payoff scoring matrix to calculate a Total Project Payoff Score that represents the relative ranking of each
BPDA project, after factoring into the analysis the merits of each project against these 48 objectives.
The Federal Building ranked second overall behind the Army Street Project, with a score of 178 compared
to the Army Street Project’s 224 points. The Federal Building scored particularly well in terms of early
implementation, enhancement of nearby property values, making better use of a public asset, preserving
an iconic building, and adding to the cultural fabric of the community.
The Federal Building’s Project Payoff Score of 178 can be supported by each of the potential uses
considered for the building. To further differentiate among potential uses and tenants, this Adaptive Reuse
Study used the set of 12 objectives described in this section.
4. Prerequisites, Contingencies, and Early Implementation
Intent: > preference for uses that address existing needs or current problems
> preference for uses whose implementation do not depend on or require
implementation of other capital projects
The BPDA will prioritize uses and tenants with a high potential for early commencement with fewer
prerequisites or contingencies. By working towards earlier implementation, the BPDA can accelerate the
production of public benefits, including revenue generation that contributes to the recovery of City
investments and achievement of BPDA self-sufficiency.
Higher priority uses will be those that can be implemented earlier and meet existing, near-term needs
rather than having the BPDA undertaking a more speculative renovation for unidentified, future lessees.
During 2012, the BPDA hopes to move into a construction planning phase with each prospective lessee
providing a Letter of Intent, expressing willingness and ability to sign a lease and noting any contingencies
that affect the lessee’s ability to sign.
5. Project Interdependencies, Supporting Projects and Facilities

Intent: > preference for uses that interconnect to other BPDA projects and plans
> prioritize uses that will support existing patterns and plans for adjacent districts
> capitalize on the adjacency of the Arts District and the Civic Center
With the right tenants, the Federal Building, in conjunction with other buildings nearby, can contribute to a
“critical mass” of destination activity anchoring the upper end of the CBD core. After the Army Street
Project begins anchoring the lower end of the CBD, the zigzag of interconnecting streets and alleys between
these two nodes of activity will see increased pedestrian traffic, adding economic activity that will enhance
property values and the feasibility of reinvestment and redevelopment of other properties.
The Federal Building sits on the eastern edge of the City’s Arts District that already includes such regional
draws and community focal points as the Mount Baker Theatre, Lightcatcher Museum, SPARK Museum of
Electrical Invention, and the Pickford Film Center, all of which represent significant community investments.
A conversion of the Federal Building to uses complementing the uses in this established, arts-themed
district would be mutually beneficial and leverage past public capital investment.
The Federal Building has a similar relationship with the Civic Center. Just a five-minute walk south from City
Hall and the Courthouse, it would be convenient to use the Federal Building for public agency offices and
civic activities. This proximity, and the Federal Building’s traditional function for government offices, lends
itself to use as civic or public agency offices if civic office expansion or replacement needs can be met by the
Federal Building.
6. Programs’ Facility Requirements, Building Suitability and Capital Requirements

Intent: > requirement that uses are compatible with historic landmark preservation
> preference for uses that can use the building in a repaired “as-is” condition
> possibility of urban pocket park if demand for on-site parking is lessened
The BPDA can only consider tenants for the Federal Building that are compatible with the existing features
and systems of the building or, if modifications are required for a lessee’s programs, the modifications must
be compatible with the Historic Preservation Plan.
The BPDA would prefer tenants that can use the building in a repaired but “as-is” condition, as much as
possible, to minimize impacts on the City’s Cost Basis. The capital improvements budget can be kept much
smaller if few, if any, walls are moved or removed. The ideal would be a lower total for repair and
restoration before occupancy in 2014, rather than needing a larger amount for this next phase of capital
improvements.
Currently, the building offers vacant offices in a range of sizes and configurations, with one large contiguous
leasable area, the 6,000 square foot former Social Security Administration offices on the first floor. The
courtroom on the second floor must be preserved; at the same time, the courtroom provides unique
potential for civic meetings and other public gatherings, potentially including performance events and
recording sessions. Much of the basement is also available, although currently divided into a warren of
storage, shop and mechanical uses, and unfortunately half the basement’s areaways (window wells) have
been paved over and no longer offer daylight and ventilation. (Existing floor plans are attached at page 33.)
Restoration of the property could include an outdoor plaza, urban pocket park or other accommodations
for outdoor public use, along with reopening the basement areaways. Although this could reduce the up-to
22 spaces on-site, parking ought to be less of a factor with the Whatcom Transit Authority bus station one
block away and many other parking options nearby, such as the Parkade less than one block away. City
plans call for future additional parking downtown, and the CBD has no on-site parking requirements for
nonresidential uses.
7. Potential Funding Sources

Intent: > preference for uses that are fundable, given the limits on available funding
> prioritize uses that correlate with funding streams that are expanding
When considering which tenants to pursue, the BPDA must keep in mind potential grant funding and low-
interest loans that could be available for renovation during 2012 and longer term. Overall, such funding can
be expected to remain scarce and competitive. The trend in recent years has been a reduction in programs
that can offer grants, low-interest loans and loan guarantees to projects like the BPDA’s.
Among the fewer public programs that remain, most of the current year’s available funds have already
been allocated, including general funds, Real Estate Excise Tax (REET) revenues and other local and nonlocal
funding. BPDA projects will be eligible for some of these funds during their annual allocation processes, but
getting access to appropriate revenue sources will take additional time.
Meanwhile, PDAs have a notable difference when it comes to funding: PDAs have access to financing
strategies that are different than most public agencies, or that most public agencies do not use. For
example, the “redevelopment agency” work of the PDA makes it eligible for various “community economic
development” programs and for the Economic Development Investment (EDI) fund allocated in the
Whatcom County budget. The BPDA can also use financing that has not been used locally, such as 63-20
bonds, or CDFI (community development financial institution) financing like the Nonprofit Finance Fund.
The BPDA notes that a dozen large national foundations and many federal agencies now support
“placemaking” initiatives that incorporate arts-based activity and the creative economy as a central
component of community economic development strategies. The national ArtPlace Initiative grantmaking
program, with one-year grants of up to $1,000,000 for placemaking projects, and other related funding
programs, might play a role in funding future renovations, operations and endowments, depending on what
uses are housed in the Federal Building.
8. Economic Considerations
Intent: > prioritize uses and lessees that can afford to pay the break-even costs of space
> preference for uses that contribute to overall economic development plans
> avoid competing with nearby commercial spaces owned by the private sector
> prioritize recovery of City Investment and ongoing break-even revenue
The BPDA’s mission is to “Develop and promote the use of City-owned property for the financial, social and
environmental well being of the community.” For the Federal Building’s adaptive reuse, financial well being
focuses on at least four levels: the building being able to cover its own annual costs, the BPDA’s role in
growing the economic base of the community, the BPDA’s recovery of City Investment, and the BPDA goal
of becoming a self-supporting agency.
For the Federal Building, the BPDA must find uses and lessees that can afford to pay the break-even cost of
managing and maintaining the property. Even without debt service, annual lease rates will be a challenge
or unaffordable for certain start-up programs and for many private nonprofit ventures. But for well-
established agencies and institutions that might need additional space, like a city or a university, their
budgets would see adding this building as a small percentage of their annual costs for office space and
facilities.
On a larger, community-wide scale, the BPDA’s mission is to help promote the health of the economy. The
Federal Building is an important new opportunity to “improve employment and commercial activity in the
CBD”, and the Federal Building can play a significant role in the local community economic development
strategy (CEDS) depending on who the tenants of the building will be.
To support this economic development role, higher priority uses in the Federal Building would be public or
institutional uses that do not include office or retail space that would compete with nearby spaces owned
by the private sector nor add to downtown vacancies. Rather, the uses of the Federal Building could help to
“animate” the CBD with business activity and visitors that would support nearby private properties.
The BPDA expects the private properties surrounding the Federal Building to see an increase in activity, and
that increase will gradually be reflected in stronger lease rates and enhanced property values nearby.
These positive impacts also ripple into increased tax revenues so that local governments can then afford to
offer better services in the community, particularly downtown. Better services and streetscapes attract
more pedestrian activity, and the cycle continues: more activity brings increased revenue for better
services, and that attracts more activity which brings increased revenue for better services, ad infinitum.
The BPDA must also concentrate on two more, internal obligations as it considers alternative uses: the goals
of recovering the City Investment in the property and becoming self-supporting as an independent agency
of the City, with annual revenues that sustain BPDA operations and further development efforts. The
Federal Building can produce a stream of net revenues and serve as an example of the revenue sharing that
is described in the BPDA’s Operating Agreement with the City.
These economic arguments have broad appeal, from the perspectives of nearby property owners, for more
employment and business opportunities downtown, for increased government revenues, and for building
the sense of place and pride of place that a vibrant downtown can exude.
9. Fiscal Considerations
Intent: > get more value from annual costs of ownership, operating and maintenance
> minimize initial capital expenditures so that break-even lease rates are lower
> prioritize uses that can use the building in a repaired “as-is” condition
> avoid duplication or less efficient use of capital spending on other public facilities
The adaptive reuse of the building makes immediate fiscal sense, because the building is unavoidably
costing the City approximately $200,000 per year in ownership, operating and maintenance expenses. The
BPDA prioritizes uses that can begin recouping this annual expenditure along with the cost of
improvements to accommodate new tenants.
Based on early estimates, the cost of renovating and operating the building will result in leasing rates that
are comparable to other commercial downtown properties if all costs of ownership and stewardship are
included. In the case of the Federal Building, the BPDA is not required to generate a profit, but the costs of
maintaining a landmark building will be higher than nearby properties have been spending on their
buildings. As a net result, the Federal Building lease rates will not be much different than other commercial
properties nearby.
Keeping the leasing rates at reasonably affordable levels will require that the BPDA minimize the initial
capital expenditures and find the best possible financing for the construction phase. Capital improvement
costs need to be recouped through lease rates, and lease rates can be lower if the improvement costs can
be reduced. Higher priority can be assigned to uses that can be accommodated with lower amounts spent
on renovation. It’s possible that much or all of the building can be used in its “as-is” configuration, at least
during the initial terms of leases, without precluding the possibility of future renovation or restoration of
the building as uses evolve over time.
Another fiscal consideration is the policy of avoiding duplication when it comes to public facility spending.
The BPDA will continue to make sure not to interfere with nor duplicate any other public agency’s facility
plans. Conversely, if the BPDA can provide space to other public agencies that have outdated, inefficient or
inadequate facilities, then the BPDA can offer a lease as a cost-effective way for those agencies to avoid
capital costs elsewhere. The Federal Building offers the City administration and City Council the option of
flex-space, to relieve overcrowded or inefficient use of offices in City Hall, or for other City functions that
need expanded, repaired or replacement facilities.
Also, on the plus side, as noted above under 8., Economic Considerations, a fully leased building will be
recognized as a return of the City Investment, as tabulated annually by the BPDA, per its Operating
Agreement with the City, and as a financial return on the annual operating expenses that are always
unavoidable with ownership of a building.
10. Environmental Considerations

Intent: > generally consistent with NEPA and SEPA policy for urbanizing areas
> capitalize on opportunities to showcase compact urban community development
> capitalize on the transit-oriented multimodal nature of the location
The Federal Building is, fortunately, not a “brownfield” project, although some remediation of old paint and
finish materials will add to the costs of renovation. From a National and State Environmental Policy Act
(NEPA and SEPA) perspective, the reuse of a commercial building poses few environmental concerns and
offers a number of environmental pluses such as improved, efficient water and energy use and a central,
urban location that is transportation-efficient.
As the City continues to urbanize, the Federal Building vicinity will exhibit much of the Urban Village nature
cited in community plans. The BPDA will be able to capitalize on the trends that continue to favor a
compact, transit-oriented form of community development. In addition, the Federal Building can exemplify
tenets of a “grow smarter” philosophy, by getting more utility out of existing facilities and infrastructure
and making it more appealing to go downtown without driving a car.
The BPDA can also prioritize uses for the Federal Building that will be compatible with Bellingham becoming
a more transit- and bicycle-oriented community. The BPDA can de-prioritize uses that require lots of car
parking which is available but limited in the CBD. For potential users of the Federal Building, it will be a
tremendous advantage to have the Whatcom Transit Authority’s central station one block away, which will
reduce the number of miles driven to get to Federal Building uses, especially compared to having those
same uses at different, more car-oriented locations.
11. Legal Considerations

Intent: > BPDA authorized to invite or pursue potential tenants, both public or private lessees
> conforming with City/BPDA Operating Agreement for management of this property
> preference for potential uses and lessees with legal access to other funding sources
The BPDA will continue to coordinate with the City as it implements the Agreement for Management of
Property (Federal Building), including negotiating with potential lessees. When an appropriate tenant is
ready to commit, the BPDA is authorized by the City to sign leases, with any below-market rate leases
requiring City Council approval before final signature. Before any tenant leases are signed, legal review will
confirm that the lease terms conform to applicable laws and regulations.
In the meantime, legal considerations appear to have little bearing on which uses or lessees can be
considered by the BPDA. Nothing in state or local statutes or regulations prevents a public entity like the
BPDA from negotiating leases with private or public tenants. When the other party in a potential lease is a
public agency, a government-to-government dialogue might include considerations that a for-profit lessee
would not find important. For example, the BPDA prioritizes area-wide impacts and the long-term ripple
effects of redevelopment; therefore, adaptive reuse by lessees that offer multiple public benefits can
command a higher priority.
The BPDA would prefer lessees whose legal status will bring access to other funding. For example, some
grants and loans are available only to projects that produce public benefit. The BPDA will be a stronger
competitor for grants and loans if its lessees are engaged in activities that fit funders’ legal requirements
and when the BPDA can point to community-wide benefits and the common good.
12. Social and Cultural Considerations

Intent: > preference for uses with multiple benefits from a triple bottom line perspective
> prioritize uses with direct, complementary impacts on the social and cultural fabric
> use “enduring cultural values” to identify what market niche might be a good focus
> pursue business development of the arts and creativity as a placemaking strategy
The BPDA takes a triple bottom line perspective in its mission statement, which means that social well being
is equally important to economic and environmental well being. This commitment to social well being is
reflected throughout BPDA and City plans; however, finding better ways to improve social and cultural well
being can be challenging and hard to fund.
For the Federal Building, the BPDA looked for suitable ways the building could play a role in the social and
cultural fabric of the community, while also keeping in mind the other eleven criteria about economic
impact, fiscal considerations, historic preservation, limited funding, etc.
The Historic Preservation Plan noted that the building “occupied a significant place in the history of
everyday life in the City since its completion in 1913.” That could remain true in the future, depending on
which new uses and tenants occupy the building. The BPDA looked for uses that have the potential for such
an impact and resonate with the enduring values of Bellingham, including life-long learning and artistic
heritage.
Education and learning have a direct impact on the social and cultural fabric of a community, and life-long
learning is an “enduring cultural value” that, locally, could become more prominent and powerful in future
years. Life-long learning has strong allies locally, including school districts, public colleges and universities,
and many independent programs and professionals.
Educational uses would fit well within the Federal Building. Inside it looks like an institution of learning,
with classroom-like spaces throughout. The upstairs hallways have the air of a venerable building one
might find at an old college. The BPDA considered how an educational program or something like a school
or academy might be an appropriate use for some or all of the building.
Artistic heritage is another enduring cultural value of the community. If one looks for heritage that is
“uniquely Bellingham,” it can be found in the creative arts that invigorate the social and cultural life of the
region.
The BPDA looked for ways the Federal Building could support the arts and culture that already make a
significant contribution to the community’s economic base and triple bottom line. Successful communities
around the US are emulating the places people want to live in or visit, and often the most appealing places
have a creative vibrancy and vitality that celebrates local heritage though the arts, culture and the creative
economy.
Where the Federal Building might fit into life-long learning strategies and into the arts and cultural life of
the community became a fundamental objective against which to compare alternative uses and potential
lessees. The role of the building might evolve over time, and in the near time, the BPDA can prioritize the
potential uses and tenants that can help to support these two enduring values.
Courtroom details, construction drawings dated October 31, 1910
Process of Elimination and Alternatives that Fit the Fundamental Criteria
Synopsis of the Process of Elimination
During 2011, as the BPDA refined its strategy and criteria for evaluating alternatives for the conversion and
reuse of the Bellingham Federal Building, different alternative uses were considered. The BPDA’s
consideration of these alternatives helped to iterate and clarify the fundamental criteria listed above.
Some suggested uses could be set aside or deferred The BPDA seeks uses for the
quickly. For example, conversion to apartments or
condominiums would be costly and difficult within the building that will avoid
restrictions of the Historic Preservation Plan, and this competition with other
use would compete with other private residential
properties.
properties and instead will
bring more people and
The same was true for the suggestions of a hotel, activity downtown as a
brewpub or restaurant. The BPDA seeks uses for the
building that will avoid competition with other public benefit to other
properties and instead will bring more people and properties in the vicinity.
activity downtown as a public benefit to other
properties in the vicinity.
Similarly, conversion of the building to private sector retail or office uses would be costly, would compete
with nearby private properties, and could increase downtown vacancies if businesses relocated to the
Federal Building.
Around the Federal Building project area, the BPDA would prefer to see private office and private retail uses
accommodated in other buildings owned by the private sector, especially during this slow market for office
and retail space. Choices (vacancies) are available in private properties nearby, where private office or
retail use is allowed and lease terms are reasonable and comparable.
By mid-2011, the BPDA had identified two general types of uses that would conform to the initial twelve
fundamental criteria: either an educational use and/or public office uses.
Within these two general uses, the BPDA identified three specific potential uses that fit the criteria: a
Science, Technology, Engineering and Math (STEM) school or academy, an arts business accelerator concept
that would be led by Western Washington University, and/or a City office or local public agency office
annex. Each of these alternatives would bring new activity to the Federal Building without duplicating or
competing with private properties nearby nor straining parking capacity in the vicinity.
By year’s end, the BPDA had arrived at a recommendation that includes a mix of the latter two alternatives,
No binding decisions have been made, and discussions with the potential lessees will continue in 2012.
During 2012, the BPDA will work with each potential lessee that indicates an interest in a possible lease,
gathering parameters for a lease proposal. The parties will prepare a Letter of Intent that could lead to a
lease agreement that addresses all the concerns and contingencies of the BPDA, the City and the lessee.
Other next steps are detailed in the Proposed Implementation Program in the last section of this report,
starting on page 28, following this section discussing alternative uses that fit the fundamental criteria.
The following section, page 18 to 28 recaps how the BPDA sifted through the range of alternative uses, in
light of the fundamental criteria that were being refined during the Adaptive Reuse Study.
Following the Strategic Plan Version 2.0
The BPDA Strategic Plan Version 2.0 advocated an approach for converting and re-tenanting the Federal
Building by applying the set of fundamental criteria, summarized into these three key parameters:
i. Identify uses that meet identifiable existing or near term needs that could re-tenant 100
percent of the building within one to two years.
ii. Anchor the northern end of the Central Business District with an iconic use related to the
Arts District or the Civic Center.
iii. Minimize or defer major capital expenditures to renovate and reuse the building.
The BPDA identified several alternative uses, as noted in its Strategic Plan, for further consideration during
the latter half of 2011. One option, the STEM school program, dropped out early, though it has merit and
may happen in the future; the two other general uses evolved into more specific ideas that could become
tenants after renovation. First, a discussion of STEM:
STEM School or Academy as a Bellingham School District Annex
This alternative looked at the conversion of all or part of the building for use as a secondary school or
academy dedicated to Science, Technology, Engineering and Mathematics (STEM) programs or other
specialized school programs. STEM aims to better prepare students for post-secondary study or training in
a wide variety of professional, academic and technical disciplines and employment.
A STEM program and stand-alone STEM school or academy (sometimes with the addition of Art to make
STEAM) are propagating rapidly throughout the United States, with increasing amounts of public and
private funding becoming available. The US Department of Education and National Science Foundation
have offered STEM-related grants as have a growing number of foundations and public agencies.
In Washington State, a recently organized nonprofit, Washington STEM, makes grants with funding from
the Gates Foundation, Boeing, Microsoft and many others. Washington STEM “advocates for… policies and
practices that will rapidly scale STEM education innovation, support educators in preparing students
throughout Washington State for success in postsecondary education and work opportunities, particularly
those students who have historically been underserved.”
At its core, STEM education initiatives aim to boost students’ success, regardless of their background, in
STEM subjects. Advocates argue that public schools’ investments in STEM will payoff, long-term, with more
prosperous, innovative communities. At the same time, STEM will increase the odds that individual
students will succeed in a wide range of career opportunities.
The BPDA looked for a STEM use to be undertaken in conjunction with the Bellingham School District,
serving students from the district’s three high schools and possibly other school districts.
Although STEM plans may be incorporated into the Bellingham School District’s future strategic plans, the
District’s current planning process is focused on coping with significant budget cutbacks and preliminary
work leading to its next strategic plan. As exciting as a STEM use in a BPDA project might be, the timing
puts that off in the distance, too far off for this Federal Building plan.
Bellingham Arts Business Accelerator
Initial Thinking and Feasibility
This alternative would convert most of the building for use by a new program that combines an
educational/school use of the facility with business development of the arts and the creative economy. The
new program would function as a helpful component in a placemaking strategy that builds on some of the
enduring cultural values that are the essence of Bellingham and the surrounding region.
The BPDA teamed up in 2011 with the deans of two colleges at Western Washington University, the College
of Fine and Performing Arts and the College of Business and Economics, to shape the concept of an “arts
business accelerator” that would offer practical training in a program serving students and emerging artists,
established artists, arts organizations, arts-related projects, artisans, and other arts-related economic
enterprises in the creative economy. The placeholder name for the program is the Bellingham Arts Business
Accelerator (the BABA).
As 2011 ended, the BPDA was encouraged by WWU’s enthusiasm for creating the BABA and by the positive
reception the concept has received. WWU and the BPDA will move forward with more detailed program
development and feasibility work in early 2012 to clarify the component parts and funding needed to
launch and sustain the program that would offer education, training and support for arts-based businesses
and the creative economy.
The BPDA and WWU will work together to identify the conditions, contingencies, and facilities required for
the BABA program and program feasibility.
WWU, the BPDA and the City would be replicating a community economic development strategy that has
worked well in communities large and small across the United States. Evidence is accumulating that smart
communities get great results when they nurture their local artistic and creative talent that, in most places,
represents an underappreciated, underdeveloped community asset.
Arts-based placemaking efforts,

when successful, like those in
Cincinnati and Fort Collins, build to
a more widely held sense that a
community is a creative place that
celebrates the importance of the
arts and culture in a thriving local
economy.
The resultant socioeconomic data

are significant, whether measured
in terms of jobs and spending in
the local economy or whether
Federal Building courtroom, second floor, looking west
measured in qualitative terms like
pride of place and quality of life.
A successful placemaking effort can also be measured in nonmonetary terms such as people participating in
the arts, audiences that loved a performance, or attendance at arts-focused community gatherings.
Bellingham and Whatcom County already enjoy a robust cultural economy, with the arts and creative sector
adding at least $38 million per year in local economic activity, according to a 2010 report published by the
Western States Art Federation (WESTAF) and the Washington State Arts Commission. (More numbers
reported below).
Ann Markusen, professor of economics at the University of Minnesota, studies the creative economy and
methods for defining, measuring and tracking economic indicators for the “cultural workforce” and the
contribution of the arts and creativity to local economics. In her keynote address to the WESTAF-sponsored
2008 symposium, State Economic Development and the Creative Economy: Looking Forward, Dr. Markusen
told the story of New York Mills, a small Minnesota town three hours from Minneapolis, that she calls “a
poster child for how an arts and culture investment can revitalize an economy.”
New York Mills shows “how a small locally-oriented industry or community activity can transform a town,
create jobs and opportunities, and draw people in – not from far-off cities, but from the surrounding
countryside.” Markusen goes on to argue the merits of goods and services produced for local consumption,
for “local income capture,” as a source of job growth, stability and resilience. It’s a shift from thinking that
“only industries that export out of their respective regions deserve nurturing.”
This shift in thinking, to a more resilient economy with appreciation of what’s local, has catalyzed change in
places like Cincinnati. In a collaborative project led by a nonprofit, ArtsWave, research and dialogue led to a
more broadly shared sense of responsibility for the arts and culture in the region. ArtsWave’s mission is to
help “create the kind of thriving arts environment that makes the Cincinnati region a better place to live,
work, play and stay.” In its 2010 publication The Arts Ripple Effect: A Research-Based Strategy to Build a
Shared Responsibility, ArtsWave notes that, “the following two ripple effects are especially helpful and
compelling to enumerate:
• A vibrant, thriving economy: Neighborhoods are more lively, communities are revitalized, tourists
and residents are attracted to the area, etc. Note that this goes well beyond the usual dollars-and-
cents argument.
• A more connected population: Diverse groups share common experiences, hear new perspectives,
and understand each other better.”
Closer to home, the Washington State Arts “In our vision of the future, our
Alliance advocates along similar lines: “The arts
create positive ripple effects throughout our state and local communities get
communities... a cornerstone of a healthy the maximum economic benefit
economy, and key to tourism and economic
development.”
from a strong creative sector”
- Washington State Arts Alliance
The BABA would be patterned after successful arts-based economic development and placemaking efforts
happening around the United States, including those showcased and supported by the ArtPlace Initiative
grant program and its many private funders and federal partners. From the ArtPlaceAmerica.org website:
“ArtPlace believes that art, culture and creativity expressed powerfully through place can create vibrant
communities, thus increasing the desire and the economic opportunity for people to thrive in place. It is all
about the local.” www.artplaceamerica.org
ArtPlace’s participating foundations include Bloomberg Philanthropies, The Ford Foundation, The James
Irvine Foundation, The John S. and James L. Knight Foundation, The Kresge Foundation, The McKnight
Foundation, The Andrew W. Mellon Foundation, The Rockefeller Foundation, Rasmuson Foundation, The
Robina Foundation and an anonymous donor.
In addition to the National Endowment for the Arts, federal partners are the departments of Housing and
Urban Development, Health and Human Services, Agriculture, Education and Transportation, along with
leadership from the White House Domestic Policy Council and the Office of Management and Budget.
ArtPlace Initiative funders see their role as providing “venture funding in the form of grants, seeding
entrepreneurial projects that already enjoy strong local buy-in and will occur at places already showing
signs of momentum, integrate with a community’s economic development and community revitalization
strategy and have the potential to attract additional private and public support to the community. “
According to the US Department of Housing and Urban Development, “ArtPlace will weave the creative
community – including artists and art groups – into broader attempts to redevelop neighborhoods and
improve the economy. And it will do so with the support of a number of private partners. Creativity and
enterprise, government and private partnerships: It takes a 360-degree approach to energize the American
economy and build bustling neighborhoods of opportunity, and ArtPlace is embracing that reality.”
The top-tier list of ArtPlace grantmakers and policy leaders confirms that WWU, the BABA and the BPDA are
on the right track. Other communities may have a head start, but lessons learned from experiences
elsewhere will improve the BABA’s program design and its potential to excel.
Note also that replicating this strategy (arts-based placemaking and business development of the arts and
creative economy) does not require that Bellingham be first and only; instead, it’s a decentralized model
that allows each community to find its own unique blend of arts, culture and creative enterprise. Success in
other regions enhances, rather than diminishes, the chance of success here.
What form might it take if the Bellingham region replicates

the concept of an arts business accelerator?
Dean Dan Guyette and Dean Brian Burton, respectively the deans of the College of Fine and Performing Arts
and the College of Business and Economics, are leading the combined effort of their two colleges and
working with the BPDA to shape the concept of a WWU-led program focused on business development of
the arts and creative economy, using the BABA as its working title. Launching the BABA program would
dovetail with another initiative being explored by the two colleges: the possibility of a combined Master of
Fine Arts/Master of Business Administration degree that would prepare graduates for careers in the
creative economy.
The preliminary results of a feasibility analysis, compiled by two student teams from the WWU Small
Business Entrepreneurship class taught by John Sands during the Fall 2011 quarter, indicate that demand
and support for such a program exists locally. To excerpt from the students’ work:
“The BABA’s vision is to be a place where artists can develop into successful entrepreneurs, to be a stronger
presence for WWU in Bellingham’s downtown area, and to be a stronger connection between business and
the arts. The mission of The BABA is to provide business education to artists and enhance the presence of
the arts in the Bellingham area. This will be achieved by providing educational courses and mentoring
opportunities to program participants while acting as a hub in Bellingham’s Art District.”
The BABA could make good use of the Federal Building, with existing spaces used for hands-on learning
opportunities, management offices, classrooms and small studios, with a showcase/exhibit hall for BABA
participants on the first floor, preservation and use of the courtroom for meetings and performances, and
use of the basement for workshop and studio space.
The student teams reported that space for such a program would be constrained and expensive on the
WWU campus, and the costs of construction on campus would far exceed the estimated costs of renovating
and leasing space in the Federal Building.
A downtown location also fits better with the Colleges’ intent for the BABA to serve the larger community
and aligns with the university’s goal of having a larger role in the off-campus life of Bellingham and the
region.
In addition to serving the BABA participants from throughout the community, the program could serve
graduate level WWU students gaining practical training for future career opportunities in the combination
of arts and business practice. A combination Master of Fine Arts/Master of Business Administration degree
at WWU may be offered in the future, providing graduates for the growing number of management
positions in the creative economy.
In its initial conceptualization, the BABA program would include collaboration with other support services
and agencies that offer local technical assistance and business training, customized to the needs of each
BABA participant. These could potentially include the Center for Economic Vitality, the Small Business
Development Center, Senior Core of Retired Executives, Sustainable Connections, Northwest Economic
Council and other economic development agencies.
Coursework and training for BABA participants could potentially include offerings from WWU, Bellingham
Technical College, Whatcom Community College, and the Lummi Nation Service Organization as well as
from independent professionals and trainers. The program could include artists-in-residence, coaching and
arts mentorships, business planning and access to capital, opportunities for collaboration and synergy, etc.
Although many logistical details have yet to be worked

out, the BABA program might periodically select its
participants by inviting applications or proposals from
students, artists, artisans, arts organizations and arts-
related projects. Applicants would request the
opportunity to participate in the BABA program and
make use of the services it will offer.
A Request for Proposals (RFP) process could provide the

BABA a basis for selecting program participants, with
Typical corridor, second floor
objective criteria and parameters for selection.
Applicants could come from throughout the community, with the “arts” and arts-related economic
enterprise broadly defined. The program might be staggered into three-month quarters or a series of
quarters. Participants would have a time-limited stay in the program, depending on need, progress,
program services and other parameters.
Examples of Arts Business Accelerator Programs
In its publication, Incubating the Arts: Establishing a Program to Help Artists and Arts Organizations Become
Viable Businesses, the National Business Incubator Association reported on the evolving field, citing Chicago
in 1987 as the first place that adapted the business incubator model to serve artists and cultural enterprise.
Today, a growing number of places with similarities to the Bellingham region are offering arts business
incubator programs. Here are two good examples:
In Cincinnati, ArtWorks, a local nonprofit and one of ArtsWave’s allies, now offers SpringBoard, a business
planning and development program for artists, artisans and creative entrepreneurs. SpringBoard “offers
entrepreneurs a variety of resources to achieve their artistic and economic goals by creating a unique and
collaborative learning environment…. creatives will build a comprehensive business plan and learn valuable
marketing and financing management skills. Access to resources and an opportunity to develop
relationships with other entrepreneurs and community partners will set these small businesses up for
success.” SpringBoard received an ArtPlace Initiative grant. www.springboardcincinnati.workpress.com
In Colorado, the Arts Incubator of the Rockies (AIR) may be one of the most inspiring among the growing
field. AIR shows the strength and dynamics of a “triangle alliance” when the private sector, local
governments and local colleges work together on a shared vision. In this case, local artists and nonprofits
allied with the City of Fort Collins and the Leadership, Entrepreneurship, Advocacy, and Performance
Institute of the Arts (LEAP) at Colorado State University. While working together to create AIR, the
stakeholders arrived at this formulation:
AIR will “offer administrative services, professional resources, and gallery and performance spaces to
students and professionals to assist them in creating, redefining, and sustaining their creative careers in the
new economy.” www.airartsincubator.org
By studying the best practices and lessons learned in other communities, the BABA can formulate a
program that will be “uniquely Bellingham”, based on local assets and the support that can help arts-based
businesses to thrive here.
EXAMPLES OF ARTS BUSINESS ACCELERATOR PROGRAMS

Successful programs that focus on economic development of the arts:
 SpringBoard (http://springboardcincinnati.wordpress.com/), Cincinnati
 Arts Incubator of the Rockies http://beetstreet.org/arts-incubator-of-the-rockies), Fort Collins
 ArtServe (http://artserve.org/), Fort Lauderdale
 Arts IMPACT (http://www.artsimpactinc.com), Detroit
 Austin Artist Career Accelerator (http://www.afdrecruiting.com), Austin, Texas
 Center for Design Innovation (http://www.centerfordesigninnovation.org), Winston-Salem
 DiverseWorks (http://diverseworks.org/about/faq/artist-opportunities/) Houston
 Zero 1 (http://www.zero1.org/about/mission) San Jose, California
 CreateHere (http://www.createhere.org/) Chattanooga
Economic Impacts of Arts and the Creative Economy
The arts and creative enterprise play a major role in the economic life of Bellingham and the nation as a
whole. The economic impact is already larger than one might guess, and a glimpse at national and local
data helps to put the financial impact in perspective.
Community economic development strategies can identify and track the components of the creative
economy, measured in terms of jobs, earned income, private sector spending and public sector revenue.
Tracking the trends and measuring the impacts gives Bellingham the opportunity to focus on, and try to
improve on, the triple bottom line.
On a national scale, the nonprofit arts and culture sector plays a multibillion role each year, according to an
analysis published by Americans for the Arts in 2007: Arts & Economic Prosperity III: The Economic Impact of
Nonprofit Arts and Culture Organizations and their Audiences.
The study’s methodology used data from across the US, looking at five quantifiable measures to define
economic impact:
1. Jobs, as full-time equivalents, as a measure of the labor employed by the nonprofit arts sector.
Full-time equivalents include part-time employees in the total FTEs; the actual number of people
paid by the nonprofit arts sector would be significantly higher since many jobs are part time;
2. Resident household income, including salaries, wages and entrepreneurial income paid to local
residents. Sometimes called earned income or personal income, resident household income is
spent by local households to cover basic needs like food, housing and services, or saved or invested
in mortgages, education and discretionary pursuits;
3. Revenue to local governments, including revenue from taxes (property tax, excise tax, utility tax,
etc.) as well as from fees and charges for licenses, utility services and other similar sources;
4. Revenue to state governments, including taxes, fees and charges; and
5. Revenue to the federal government.
Nationally, arts nonprofits generated an estimated $166.2 billion in economic activity in 2005, including
paying salaries and wages for 5.7 million full-time equivalent (FTE) jobs. Of that $166.2 billion, an estimated
$104.2 billion was resident household income and $29.6 billion went to federal, state and local government
revenues. Note that government took in seven times more revenue than the amount spent collectively on
nonprofit arts-related activity by federal, state and local governments, $29.6 billion collected compared to
$4.0 billion spent, a 7 to 1 ratio.
This national study, Arts & Economic Prosperity "In my own philanthropy and
III: The Economic Impact of Nonprofit Arts and
Culture Organizations and their Audiences, business endeavors I have seen
included Bellingham among the 156 the critical role that the arts play
communities and regions in the analysis,
posted at the Americans for the Arts website,
in stimulating creativity and in
www.artsusa.org/about_us. developing vital communities. As
this study indicates, the arts
The Bellingham-specific report, posted at the
Bellingham Arts Commission webpage, shows have a crucial impact on our
that 2005 economic activity was $14.1 million economy and are an important
from the Bellingham nonprofit arts and culture
industry, including 511 full-time equivalent
catalyst for learning, discovery,
jobs, an annual total of $9.5 million in local and achievement in our country."
household income, $538,000 in local tax - Paul G. Allen, Philanthropist and
revenue and $666,000 in state tax revenue. Microsoft Co-Founder
Americans for the Arts will report an updated set of Arts and Prosperity numbers this spring, including new,
updated numbers from Bellingham and Whatcom County. Allied Arts of Whatcom County and its member
organizations have been gathering data that will feed into this next Arts and Prosperity report.
The Arts and Prosperity methodology works as a measure of the nonprofit arts and culture sector’s
economic impact, at least as a measure of nonprofit spending, payroll and audience spending.
But what about the for-profit sector?
Adding in the for-profit sector of the creative economy more than doubles the economic impact, according
to the Western States Arts Federation (WESTAF). To measure the combined private for-profit plus private
nonprofit activity, WESTAF, in collaboration with the Washington State Arts Commission, developed the
Creative Vitality Index™ to measure and compare local spending and employment in the arts, using US
Department of Labor, US Census Bureau and Urban Institute's National Center for Charitable Statistics data.
According to WESTAF, the Creative Vitality Index™ (CVI™) measures annual changes in the economic health
of an area by integrating economic data streams from both the for-profit and nonprofit sectors. Using per
capita measurements of revenue data from both for-profit and nonprofit entities as well as job data from a
selection of highly creative occupations, the research aggregates the data streams into a single index value
that reflects the relative economic health of a geography's creative economy.
According to the specific jobs and sales

Art by the Numbers in Whatcom County
data used by WESTAF, the Whatcom
Art Gallery & Individual Artist Sales $21,090,000
County area had over $38 million in arts-
Art Dealers $3,436,000
related economic activity in 2008,
Performing Arts $3,087,000
combining creative and arts-related
Theatre Companies $250,000
employment and arts-related goods and
Musical Groups and Artists $2,837,000
services. WESTAF also reported a total of
Non-profit Arts Organizations Revenues $4,827,000
2,882 arts-related jobs in the county in - Creative Vitality in WA State: 2010 Update
2008.
For the four county area of Northwest Washington (Whatcom, Skagit, Island and San Juan), WESTAF’s
report, Creative Vitality in Washington State: 2010 Update, showed a tally of over $82 million in 2008 and
5,500 arts-related jobs, using the same data sources.
Statewide, the total for these specific jobs and arts-related goods and services in 2008 was $1.8 billion and
over 100,000 jobs in Washington.
Another source of data about employment in the arts and creative economy can be extracted from Brad &
Dunstreet data. As of January 2011, according to this data, Washington Congressional District 2 is home to
2,365 arts-related businesses that employ 5,383 people in art-centric businesses. These creative industries
account for 5.09 percent of the 46,467 total businesses located in District 2 and 1.89 percent of the 285,074
total people they employ, or two out of every hundred employees in the District.
The creative industries are composed of arts businesses that range from non-profit museums, symphonies,
and theaters to for-profit film, architecture, and advertising companies.
For Washington, the totals are 20,703 arts-related businesses that employ 62,047 people, equal to 5.21
percent of the 397,032 total businesses located in Washington and 2.19 percent of the 2,830,512 total
employment. www.artsusa.org/information_services/research/services/creative_industries/default.asp
Based on these same industries, the Brad & Dunstreet national total as of January 2011 was 756,007
businesses in the U.S. involved in the creation or distribution of the arts, employing 2.99 million people,
representing 4.14 percent of all businesses and 2.17 percent of all employees.
Since many nonprofits and individual artists are not registered with Brad & Dunstreet, these totals can be
considered conservative numbers that underestimate the actual totals.
Although tracking the jobs and dollar figures is important, the impacts go well beyond dollars-and-cents.
When the national Arts & Prosperity III study was published in 2007, the President and CEO of Americans
for the Arts, Robert L. Lynch, prefaced the statistics and analysis in the report by saying, “Understanding
and acknowledging the incredible impact of the nonprofit arts and culture, we must always remember their
fundamental value. They foster beauty, creativity, originality, and vitality. The arts inspire us, soothe us,
provoke us, and connect us. But they also create jobs and contribute to the economy.”
To get at the big-picture, triple bottom line impacts, other analysts are devising additional methods to
measure the social changes that accompany the economic impacts that the financial data represent.
Coming out soon, in May 2012, the ArtPlace Initiative’s partners will unveil their new Vibrancy Indicators
and tracking methodology. The Vibrancy Indicators will measure the outcomes one would hope to see as a
result of successful implementation of an arts-based placemaking strategy.
According to the preview on the ArtPlace website,

www.artplaceamerica.org/vibrancy-indicators, Successful communities depend on
“Successful communities depend on their ability to their ability to develop, attract and
develop, attract and retain talent. In a community retain talent. In a community with
with abundant talent, everyone benefits. The ability
to attract and retain talent depends, in part, on
abundant talent, everyone
quality of place. And the best proxy for quality of benefits.
place is vibrancy. - ArtPlace Initiative Vibrancy website
“We define vibrancy as places with an unusual scale and intensity of specific kinds of human interaction,” to
quote from ArtPlace. “While we are not able to measure vibrancy directly, we believe that the measures
we are assembling, taken together, will provide useful insights into the nature and location of especially
vibrant places within cities. We will use three broad sets of indicators to measure urban vibrancy: people,
activity and value.”
Bellingham can consider using the Vibrancy Indicators, once the methodology is available in May, to
determine the baseline data for 2012 and to measure change over time.
It may be that a combination of the Arts & Prosperity methodology, the Creative Vitality Index™, the
Vibrancy Indicators will be useful for measuring the annual totals and trends over time in the creative
economy.
City Hall Annex or Public Office Uses and Flex-Space
The City of Bellingham can consider the Federal Building’s vacant space as an alternative location for any
number of City functions that currently occupy office space in City Hall or other City facilities.
The BPDA and the City can convert all or part of the building for use by city management and administrative
functions that are currently located in other facilities that may be inadequate or inefficient, that may be
needed by other City departments, or that will be requiring extensive capital repairs or improvements.
The City can avoid capital expenses that it might be considering for other City buildings that need
renovation or upgrading if instead the City can use space in the Federal Building, on either an interim or
long-term basis. Public sector offices would fit into existing spaces in the Federal Building, with minimal
upgrades and tenant improvements, using the building in a repaired, “as-is” condition.
This alternative would focus on public uses versus expensive conversion of Federal Building space to Class A
office or retail space for private sector tenants. As noted above, the BPDA prefers to avoid competition
with private sector tenants or adding to downtown vacancy rates.
The BDPA’s criteria on page 14 noted the fiscally prudent policy of getting the maximum benefit from
existing City buildings like the Federal Building, including getting a return on the City funds spent to operate
and maintain the building. Annually, the City spends approximately $200,000 per year, not including the
costs of capital repairs or renovations.
The Federal Building, as an underutilized City facility, provides an opportunity to rearrange operations in
City Hall and/or to allow the consolidation of other uses in that building or other City-owned buildings.
If the City used the Federal Building as a City Hall office annex or flex-space, it would make good use of a
City-owned facility, deriving benefit from its sunk costs and on-going costs (City Investment) in a building
that might otherwise remain vacant and unproductive for an extended period of time. The Federal Building
is interconnected with the City’s information technology (IT) systems and is conveniently accessible to City
Hall, a three- to five-minute walk.
Additional work will be required to determine City departmental needs and to identify adjustments in space
requirements for City departments. Possibilities that might be considered further include:
• separating conflicting uses, visitor traffic congestion and overcrowding within City Hall second floor
spaces shared by the Mayor’s Office, City Attorney’s Office and City Council;
• providing expansion space or relocation space in the Federal Building for City Hall functions while
avoiding the costs of City Hall expansion or renovation;
• potential use of the Federal Building courtroom for public meetings as an alternative to the Council
Chambers or the always-busy Mayor’s Board Room; and
• “flex-space” for temporary, one-time, or rotating uses that could make good use of Federal
Building space.
When the City’s Municipal Facilities Master Plan was completed in 2008, it noted that the City’s projected
population growth would require a commensurate growth in City staffing and additional facilities to house
City services. For example, the Facilities Master Plan recommended that City Hall be expanded with a four-
story, 24,000 square foot addition.
By the time the City’s Capital Facilities Task Force released its 2010 report, economic conditions had
changed significantly from 2008, and the Task Force recommended a focus on the “use and maintenance of
existing city buildings”, putting a lower priority on the earlier Facilities Master Plan’s recommendations for
new buildings or building additions.
The BPDA considered the costs of relocating City functions into the Federal Building and, based on
preliminary estimates, found that the annual cost of office spaces in the Federal Building would be roughly
equivalent to the projected costs of office space in the City Hall when all costs are included (operating costs,
tenant improvements financing costs, common area improvements financing costs, repair/replacement
reserves).
The BDPA will continue to work with the City administration and City Council to identify City office needs
that could be accommodated efficiently or economically in the Federal Building, and those discussions will
continue during 2012.
If the City determines that it does not need office space in the Federal Building, the BPDA can reach out to
the County government or other public agencies that may need interim or long-term office space
downtown.
Special Quasi-Public Offices Uses and Flex-Space
The BPDA could consider the Federal Building’s vacant space as an alternative location for quasi-public
agencies or organizations that provide a public service or function that receives public funding and that may
need to relocate or expand its current office spaces.
An example of a partially City-funded agency that provides a public service on behalf of the City government
and that may need to expand is the Downtown Bellingham Partnership if the proposed Parking and
Business Improvement Area is created.
With leadership from the Downtown Bellingham Partnership (DBP), downtown property owners and
business owners have been discussing the possibility of a Parking and Business Improvement Area (PBIA)
that could be created by the City of Bellingham.
The PBIA would function as a business improvement district, and properties within its boundaries would
pay a real estate property assessment to support the maintenance and enhancement of the district. The
public funds produced by the PBIA would be used to provide maintenance, security, beautification and
other services under the management of the DBP board.
If the City creates the PBIA, and if the DBP is charged with implementing the annual work plan of the PBIA,
then the DBP will need to expand its staff and office space to implement these public functions.
The BPDA has suggested that the Federal Building would be an appropriate location for the expansion of
these DBP public functions and has asked the DBP to keep this possibility in mind as it moves forward with
its advocacy for the creation of the PBIA.
Among the advantages a Federal Building location could offer, the DBP could consider the benefits of:
• additional office space to accommodate the expanded role of the DBP Implementing the PBIA;
• better visibility with street-frontage and better access for the public;
• an office that conveys a sense of solidity and permanence;
• basement storage, if not entirely used by BABA, for PBIA programs’ equipment, tools and supplies;
• linkage with other Federal Building tenants engaged in complementary, related projects and
ventures; and
• linkage with other future BPDA projects and programs with potential for increasing business
activity in the Central Business District.
Proposed Implementation Program
This section outlines recommended key steps during the period CY 2012 - CY 2014 to implement the
recommendations presented in the Federal Building Adaptive Reuse Study and Re-tenanting Plan.
The primary objective of these steps targets an occupancy level of approximately 84% (including existing
and new tenants) for the Federal Building in CY 2014, with lease agreements providing for the recovery of
projected City Investment in the building over the term of the leases. Current occupancy for the building
projected through June 2012 is approximately 20% of total rentable floor area (including existing tenants
and basement uses).
1. Review and Adoption of the Adaptive Reuse Study and Re-Tenanting Plan
The City-BPDA Operating Agreement and the BPDA Federal Building Management Agreement outline
provisions for coordination with City management and City Council, as the City is the owner of the
building and BPDA manages this asset. Proposed steps include:
a) Adoption of the Adaptive Reuse Study and Re-Tenanting Plan by the BPDA Board of Directors, with
a recommendation for City approval.
b) Briefings and concurrence with the Mayor and Department of Public Works on the report purposes
and recommended re-tenanting plan for direction and go-ahead approval.
c) Briefings and concurrence with City Council for direction and go-ahead approval.
st
d) It is projected that these steps could be completed during the 1 Quarter of 2012.
2. Leasing Letters of Intent
Features shared by the recommended anchor re-tenanting prospects include the need for space driven
by a new venture or start-up program to be conducted by the entity, expansion or addition of functions
undertaken by the entity, or the reuse of previously occupied space for other functions of the
organization. This requires significant involvement and support in organizational and management
planning with these entities on the part of the BPDA, compared to a more typical leasing program with
decision-making focused on relocation of an existing operation to secure a more advantageous location
or lower rent for an ongoing enterprise.
Coordination with recommended re-tenanting prospects to further develop their programs and refine
the feasibility and business plans for those uses, projected facility and space requirements, building
suitability and confirmation of prospect interests would continue. Non-binding Letters of Intent
signifying a committed interest by both the owner and tenant would be negotiated and executed.
These Letters of Intent would provide an early measure of feasibility for capital investment, support
subsequent funding applications by the BPDA for required building capital improvements, guide future
architectural and engineering studies, and preparation of lease documents.
a) Letters of Intent would be non-binding pending execution of a contractual lease.
b) Letters of Intent would include projected (preliminary) rentable floor area requirements, lease
terms (duration), estimated lease rates, all to be modified and confirmed by subsequent work and
incorporated into future lease documents.
c) Letters of Intent would list contingencies to be included in a lease and to be fulfilled before a
contractual lease would be binding, including such provisions as:
 Draft of a lease by the BPDA (with review by the City Attorney’s Office and approval by
the City) including provisions unique to each tenant.
 Approval of lease documents by governing bodies for the BPDA, City and tenants (e.g.,
City Council, Boards, Trustees, etc.).
 Funding to be obtained by the BPDA and the City for capital improvements required for
building and site capital improvements, renovation and upgrade of building common
areas and building systems, tenant allowances or improvements provided by the owner
for tenant’s leased space.
 Funding to be obtained by the tenant for tenant’s share of tenant improvements and/or
operating funds for programs to be conducted by the tenant.
d) Letters of Intent would need to be executed prior to the expenditure of operating funds (e.g. staff
time and legal costs for lease documents) or capital funds by the BPDA and the City (e.g. to
undertake preliminary architectural and engineering studies described below).
nd
e) Execution of Letters of Intent is projected for completion during the 2 Quarter of 2012.
3. Preliminary Architectural and Engineering Studies
Following execution of Letters of Intent, it is proposed that preliminary architectural and engineering
surveys and planning commence for building and site capital improvements, common area upgrades
and renovations, space planning and tenant improvements. This work would be at a schematic level of
detail and would support applications for funding the required capital improvements.
a) Proposed work would address elements including:
 Assessment of the suitability of the site, building and building systems for the proposed
specific uses, including building code requirements, and required/proposed modifications.
 Common area upgrades and renovations.
 Environmental remediation (e.g. paint and asbestos) and resource conservation opportunities.
 Specialty requirements (e.g. acoustic).
 Tenant space planning and tenant improvements.
 Compliance with the Historic Preservation Plan, recommended variances.
 Preliminary estimate of capital costs and operating costs.
 Estimated construction schedule.
b) Work would be managed by the BPDA, and include close coordination with and support from the
Department of Public Works Capital Facilities Division and the tenant prospects.
c) Close coordination with the State Historic Preservation Officer (SHIPO) is also required during this
phase of work.
d) Prior to commencement of this phase, a budget amendment for funding of the work would be
prepared in coordination with the Department of Public Works (the Federal Building is included in
the DPW budget) and the Mayor for final City Council review and approval.
e) Note that this phase would be conducted concurrently with the continued research of potential
funding sources for these capital improvements. It is proposed that funds advanced for this initial,
preliminary A&E work would be recoverable from these funding sources with a successful
application.
f) This A&E work would be awarded per BPDA public works bidding and professional services
procurement policies.
rd
g) It is estimated that this work would commence at the start of the 3 Quarter of 2012 (following
execution of Letters of Intent and a proposed Federal Building budget amendment) and be
th
completed at the end of the 4 Quarter of 2012.
4. Contingent Lease Documents and Projected Lease Rates
Following completion of Letters of Intent and Preliminary Architectural and Engineering Studies, lease
documents would be negotiated and executed with tenants. These documents would include
contingencies to be fulfilled before the leases would be binding as described in the previous section
describing Letters of Intent.
a) Leases would include projected lease terms and rates, and define landlord/tenant obligations.
b) Contingencies would include approval by the governing bodies for the landlord (City) and the
tenants. City approvals would include review and approval by the BPDA Board of Directors, Mayor,
City Attorney’s Office, Department of Public Works, and City Council.
c) Contingencies would also include funding approvals for the landlord’s work and the tenant’s work.
d) Preparation of leases would be concurrent with continued funding source research and funding
applications and approvals.
e) Lease rates are to be refined during this task, with the objective of achieving break-even lease
rates for the recovery of the City Investment (out-of-pocket costs incurred by the City for building
capital improvements, tenant improvements and landlord services) over the term of the lease.
Components of gross rent rates include the following general categories:
 Landlord’s building operating and ownership expenses prorated to tenants based on tenant’s
leased rentable square footage. This category includes such costs as utilities, property
management and ownership, custodial and maintenance services for shared common areas
and the tenant’s space, and regular repair and maintenance for site, building and equipment.
 Out-of-pocket capital expenditures and financing costs for site and building improvements and
building common area improvements, prorated among tenants based on rentable square
footage.
 Out-of-pocket capital expenditures and financing costs for tenant allowances or tenant
improvements provided by the owner, based on the tenant’s usable square footage.
 Capital reserve for major repairs and replacements for site and building improvements,
prorated among tenants based on rentable square footage.
f) A preliminary estimate of annual gross rent rates is in the range of $10.50 - $14.00 per rentable
square foot. The most significant variables would be the cost of capital improvements for building
and common area upgrades and tenant improvements, financing sources and terms for funding
those improvements, and the length of the tenant’s lease.
g) This task would be concurrent with the Preliminary Architectural and Engineering Phase and
th
Funding Source Research and Applications for completion in the 4 Quarter of 2012.
5. Continued Funding Source Research and Applications
Work commenced in CY 2011 to identify potential funding sources for building capital improvements
and tenant improvements. This would continue during CY 2012, concurrently with execution of Letters
of Intent, Preliminary Architectural and Engineering Studies, and Preparation of Lease Documents.
a) Given the economic development and public/quasi-public purposes of the proposed re-tenanting
mix, funding strategy is currently focused on the County-administered Economic Development
Investment (EDI) program. The Federal Building Adaptive Reuse and Re-Tenanting Plan objectives
are compatible with the purposes of that program, providing the possibility of successfully applying
for either a grant or low-interest, long-term loan or a combination of these two funding vehicles.
b) Any previous costs borne by the City for prerequisite work (e.g. Preliminary Architectural and
Engineering Studies) is proposed to be recovered in the amount requested for funding.
c) Other possible funding sources deserving further consideration include grants and/or loans from
public institutions and private foundations, such as the ArtPlace Initiative.
d) Applications for EDI funding or other vehicles creating an obligation or liability of the City would
require coordination and approval with the Mayor and City Management, with approval of any
contractual obligations and agreements by City Council.
th st
e) The completion of this task is projected for the end of 4 Quarter of 2012 and possibly early 1
Quarter of 2013.
6. Final Architectural and Engineering Plans
Commencing preparation of final architectural and engineering plans and construction documents for
required site and building improvements would be contingent upon the successful application and
award of grant and loan funds for design and construction of the improvements.
a) Work is proposed to be managed by the BPDA, and include close coordination with and support
from the Department of Public Works Capital Facilities Division and the tenant prospects.
b) This A&E work would be awarded per BPDA public works bidding and professional services
procurement policies.
c) Duration of this task is to be determined, but is estimated at 8-10 months culminating with the
nd rd
issuance of building permits. If that is the case, this phase could be completed 2 – 3 Quarter of
2013.
7. Construction of Building Improvements, Common Area Improvements, Tenant Improvements.

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a) Construction of site, building, and tenant improvements could commence 3 Quarter of 2013.
Assuming a 12-month construction schedule (to be determined) work could be completed for
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tenant occupancies commencing 3 Quarter of 2014.
b) Construction management is proposed to be provided by the Department of Public Works Capital

Facilities Division or a Construction Management Contractor under DPW’s oversight, and include
close coordination with and support from the BPDA and the tenant prospects.
c) This construction work would be awarded per BPDA or DPW public works bidding and professional
services procurement policies.

Federal Building Adaptive Reuse Report Final

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Federal Building Adaptive Reuse Report Final

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BELLINGHAM FEDERAL BUILDING

ADAPTIVE REUSE STUDY AND RE-TENANTING PLAN

Executive Summary Page 3

Project Development Strategy and Fundamental Criteria Page 9 - 16

Proposed Implementation Program Page 28- 32

Federal Building floor plans, current configuration Page 33 - 36

Recommendations for next steps during 2012 - 2014 include:

Historic Landmark status

Bellingham Federal Building, first floor lobby facing east

Historic Preservation Plan

The Historic Preservation Plan describes an

Proposed Renovation Plan

Bellingham Federal Building original elevator, September 1950

1. Program Development, General Management and Administration

2. Implementation of City Legacies, Policies and Plans

5. Project Interdependencies, Supporting Projects and Facilities

6. Programs’ Facility Requirements, Building Suitability and Capital Requirements

7. Potential Funding Sources

10. Environmental Considerations

11. Legal Considerations

12. Social and Cultural Considerations

Courtroom details, construction drawings dated October 31, 1910

Synopsis of the Process of Elimination

STEM School or Academy as a Bellingham School District Annex

Initial Thinking and Feasibility

Arts-based placemaking efforts,

The resultant socioeconomic data

What form might it take if the Bellingham region replicates

Although many logistical details have yet to be worked

A Request for Proposals (RFP) process could provide the

Examples of Arts Business Accelerator Programs

EXAMPLES OF ARTS BUSINESS ACCELERATOR PROGRAMS

Economic Impacts of Arts and the Creative Economy

But what about the for-profit sector?

According to the specific jobs and sales

According to the preview on the ArtPlace website,

City Hall Annex or Public Office Uses and Flex-Space

Special Quasi-Public Offices Uses and Flex-Space

Proposed Implementation Program

2. Leasing Letters of Intent

a) Letters of Intent would be non-binding pending execution of a contractual lease.

a) Proposed work would address elements including:

 Common area upgrades and renovations.

 Specialty requirements (e.g. acoustic).

 Tenant space planning and tenant improvements.

 Compliance with the Historic Preservation Plan, recommended variances.

 Preliminary estimate of capital costs and operating costs.

 Estimated construction schedule.

4. Contingent Lease Documents and Projected Lease Rates

5. Continued Funding Source Research and Applications

6. Final Architectural and Engineering Plans

7. Construction of Building Improvements, Common Area Improvements, Tenant Improvements.

b) Construction management is proposed to be provided by the Department of Public Works Capital

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