Bellingham Megaprojects 2026: 7 Projects Changing Whatcom County

By Tommy Mutchler — Real Estate Agent, Managing Broker, Real Broker LLC, Whatcom County WA

What megaprojects are coming to Bellingham? Seven big projects and proposals could reshape Bellingham and Whatcom County: the Salish Landing waterfront park, the Barkley plan, a $336 million PeaceHealth St. Joseph expansion, rebuilt border crossings at Lynden and Sumas, a possible comeback for Homestead in Lynden, up to four homes on most Bellingham lots, and a push to make Birch Bay a city. Some are approved and under construction and some are only proposals, so here's exactly which is which and what each one means if you own a home nearby.

Last updated October 2026. Facts checked against the linked sources on October 1, 2026.

Bellingham's 7 megaprojects at a glance

Salish Landing ($48.8 million), the first new Barkley apartment building ($52 million), PeaceHealth ($336 million) and the two border crossings ($408 to $499 million in federal estimates) add up to roughly $845 to $936 million, before the rest of the 20-year Barkley buildout. Where each one stands as of October 1, 2026:

• Salish Landing: approved and under construction.
• Barkley: plan approved; first building under construction.
• PeaceHealth St. Joseph: under construction.
• Lynden and Sumas border crossings: federal plan final; construction start still to be determined.
• Homestead (Lynden): early concepts only.
• Up to four homes per lot: in effect under interim rules through December 4, 2026.
• Birch Bay as a city: proposed; earliest vote November 2027.

1. Salish Landing: a 17-acre waterfront park on Cornwall Avenue

Salish Landing is a new 17-acre waterfront park at the foot of Cornwall Avenue. Here's the crazy part: it's being built on an old toxic site. The R.G. Haley property was a wood-treatment plant until 1985, and next to it the Cornwall Avenue site was the city landfill from 1954 to 1965 (City of Bellingham).

The City Council awarded a $48.8 million contract for the cleanup on September 15, 2025. Hauling the contaminated soil away would have cost nearly $1 billion, so the site is being sealed under a seven-layer cap instead (Salish Current, Sept. 16, 2026). The contract also covers Phase 1 of the park: a beach, trails, a boat launch, habitat and 27 parking spaces (City of Bellingham). Later phases may add boat storage, concessions and sand volleyball.

Status: approved and under construction since January 2026. The city's parks director says it could be done in late 2028 or early 2029 (WhatcomTalk, Aug. 9, 2026). Glass Beach is closed during construction.

What it means if you own a home nearby: if you live on South Hill or near downtown, a big new waterfront park is coming close by. I don't think it will directly affect most of the Bellingham housing market, but it adds to the quality of life for everyone.

2. Barkley: room for about 3,000 homes

Barkley has about 484 homes today, and almost nine out of ten are apartments. In August 2025, the City Council unanimously approved a new Barkley plan covering 255 acres, most of it owned by the Talbot Group. It raises the limit from about 1,100 homes to about 3,000 in total, roughly 2,500 more than are there today. It also makes room for about 1.4 million square feet of shops and offices, 115 acres of green space and a 40-acre forested park (Cascadia Daily News, Aug. 25, 2025).

This won't happen overnight; the buildout is expected to take about 20 years. The first big building is The Manning: 142 apartments costing over $52 million on Rimland Drive. It broke ground in December 2025, with leasing expected in early 2027 (Talbot Group announcement). The Talbot family is also donating about six acres for a new YMCA in Barkley, with no timeline yet (Cascadia Daily News, July 14, 2026).

Status: plan approved August 2025; The Manning under construction; YMCA announced with no timeline.

What it means if you own a home nearby: if you own in Barkley, Sunnyland or King Mountain, the plan points to more shops, services and parks nearby, and buyers love that. The trade-off is years of construction and a lot more traffic.

3. PeaceHealth St. Joseph: a $336 million expansion

PeaceHealth broke ground on October 24, 2025, on a $336 million, six-story addition at St. Joseph Medical Center (Cascadia Daily News, Oct. 24, 2025). It adds 80 new beds and a rooftop helipad, with a new emergency department on the first floor and childbirth and pediatrics on the top floors. The new ER is expected to open in 2028.

To be straight with you, there's another side to this. PeaceHealth has cut dozens of local jobs over the last year, including 17 in Bellingham announced in September 2026 as IT work moves to an outside company (Cascadia Daily News, Sept. 18, 2026). It also listed its 7.5-acre South Campus on Chestnut Street for sale in January 2026 (Cascadia Daily News, Jan. 27, 2026). That's a big piece of land near downtown that could become something totally different. As of October 1, 2026, no buyer has been announced.

Status: under construction. South Campus listed for sale, no buyer announced.

What it means if you own a home nearby: St. Joe's is one of the biggest employers in the county, and a bigger ER and more beds matter to anyone who plans to stay here. A growing hospital also needs staff, and they need places to live. If you own near St. Joe's, expect construction until about 2028. Not nearly as long as Barkley, but worth knowing.

4. The Lynden and Sumas border crossings

Up to half a billion dollars is set to rebuild the Lynden and Sumas crossings. If you've crossed at Lynden, you know it's small: three car lanes, one truck lane, and it closes at midnight. The plan is five car lanes and four truck lanes, possibly open 24 hours (U.S. General Services Administration, Lynden). Sumas goes from five car lanes to six and from two truck lanes to four, plus a pedestrian walkway and a new main building (GSA, Sumas).

Federal estimates are $170 million to $208 million for Lynden and $238 million to $291 million for Sumas, paid for by the 2021 federal infrastructure law. Both crossings need more land: about 5.6 acres at Lynden, including farmland, a business and a home, and about 8.6 acres at Sumas, including the American Legion post, a gas station, a motel and a duty-free shop (GSA Record of Decision, Dec. 17, 2024).

Status: the federal plan is final (Record of Decision, December 17, 2024). Construction contracts went out to bid in December 2025, and the target is to finish both by 2030. The construction start date is officially still to be determined. Lynden traffic could be detoured for most of the build, but that hasn't been decided.

What it means if you own a home nearby: if you live in Lynden or Sumas, plan on years of construction and likely detours. After that, you get much bigger crossings that handle more cars and trucks coming through town, which is good for local business.

5. Homestead in Lynden: a closed golf course that could come back

Homestead is a 153-acre, 18-hole private course in Lynden with more than 600 homes and condos around it. After years of legal fights, the course closed in August 2023 and has sat empty since. In fall 2025, a firm called IMM Capital took control of it through a deed in lieu of foreclosure (Lynden Tribune, Oct. 1, 2025). In May 2026, IMM showed owners early concepts: 80 to 100 more homes, cutting the course from 18 holes to 9, and using the extra land for walking paths, gardens, a dog park, parks and a community center (Cascadia Daily News, May 28, 2026).

Status: early concepts only, which the company calls "preliminary brainstorming." Added homes would still need studies, financing and Lynden City Council approval. A lawsuit is pending at the Court of Appeals, and there are other liens on the property (Cascadia Daily News, Feb. 18, 2026).

What it means if you own a home nearby: if you own in Homestead, you're living next to a closed golf course, which is less than ideal. If it does open up again, I think it would be a huge upgrade for the community. None of it is approved yet.

6. Up to four homes on most Bellingham lots

This one isn't a single project. It's every residential lot in Bellingham. Under the city's interim middle housing ordinance (2025-12-032, passed December 8, 2025), most residential lots can hold up to four homes. Within a half-mile walk of a major transit route, or if two of the homes are affordable, it's up to six. It covers every residential area except the Lake Whatcom watershed, with a 35-foot height limit (City of Bellingham).

Those four homes can include up to two ADUs, like a backyard cottage or a basement apartment, and you don't have to live on the property (City of Bellingham ADU rules). Since August 25, 2026, the city has also repealed parking minimums citywide (City of Bellingham). Proposals are already coming in, including six duplexes in Happy Valley and four townhomes plus four ADUs in the Samish neighborhood (Cascadia Daily News, Aug. 3, 2026).

Status: in effect now, but temporary. The interim rules run through December 4, 2026, unless the City Council acts, and no permanent version has been adopted. The city is rewriting its whole land use code through the end of 2027, so details could change (Cascadia Daily News, Sept. 3, 2026).

What it means if you own a home nearby: two things. First, your lot might be worth more than you think, because a builder may be able to fit extra homes on it. That depends on your lot's size, zoning and location, so get a real number (here's how home valuations work in Bellingham). Second, the house next door could become four houses. It's a mixed bag: real upsides, but your neighborhood could start to look very different.

7. Birch Bay could become Whatcom County's newest city

The last one isn't a building at all. On September 17, 2026, the Birch Bay Incorporation Association voted to file a notice of intent to incorporate (Cascadia Daily News, Sept. 18, 2026). A City of Birch Bay would have about 9,000 residents, making it the fourth-largest city in Whatcom County, bigger than Blaine (Whatcom County feasibility study, Dec. 22, 2025).

Under state law (RCW 35.02), the notice is filed with the county and the Boundary Review Board holds a meeting. The group then has 180 days to collect signatures from 10% of registered voters, the board reviews the boundaries, and it goes to a vote. The group is aiming for November 2027 at the earliest. Birch Bay voters said no 3 to 1 in 1992 (Cascadia Daily News, Feb. 29, 2024).

The money is debated. The county study projects a shortfall of about $1.95 million in 2027, growing to $2.44 million by 2032, mostly from police costs. The association says the same model, at current service levels and taxes, shows about a $2 million surplus.

Status: proposed. Earliest possible vote: November 2027.

What would change if you own in Birch Bay: roads, zoning and planning would move to the new city, and police would likely be a contract with the sheriff's office. The county road levy would be replaced by a city property tax levy, capped at $1.60 per $1,000 of assessed value. Water, sewer and the fire district would basically stay the same. Whether that trade is worth it is up to Birch Bay voters.

Frequently asked questions

Which Bellingham megaprojects are under construction right now?

As of October 1, 2026: Salish Landing park (since January 2026), the $336 million PeaceHealth St. Joseph expansion (since October 2025) and The Manning, a 142-apartment building in Barkley (since December 2025).

Can I build four homes on my lot in Bellingham?

On most residential lots, yes, under interim rules: up to four homes, or six near a major transit route or with two affordable homes. The Lake Whatcom watershed is excluded, and the rules run through December 4, 2026, unless the City Council acts.

When will Salish Landing park open?

The city's parks director expects Phase 1 to be done in late 2028 or early 2029.

Is Birch Bay becoming a city?

Not yet. The Birch Bay Incorporation Association voted on September 17, 2026, to file a notice of intent. Signatures, a Boundary Review Board review and a public vote still have to happen, and the earliest vote would be November 2027.

What do these projects mean for your home?

Every one of these plays out differently street by street. If you own near one of them and want to know where your home stands, I'm happy to help.

What's your home worth right now? Text VALUE to (360) 312-4410.

Book a free strategy call: https://tommymutchler.com/book

Tommy Mutchler | Realtor, Managing Broker @ Real Broker, LLC