BELLINGHAM, WA (MyBellinghamNow.com) – Plans are moving forward for the next phase of an affordable housing complex on the Bellingham waterfront.

The Port of Bellingham commissioners approved design documents for Phase 2 of the Millworks project at their meeting on Tuesday, Feb. 18.

The new seven story complex will be built adjacent to the Phase 1 Millworks complex, which is located on the corner of Cornwall Avenue and Laurel Street. The new building will feature roughly 109 units of “workforce” housing with a multi-level parking garage.

The Port of Bellingham Director of Environmental and Planning Services Brian Gouran says the new complex will offer a middle ground for residents seeking affordable housing.

“The workforce housing is what around here we talk about as that missing middle where it’s about 100% of average mean income, 100-110 would be the market you’d be looking at for these units,” Gouran told port commissioners at the meeting.

The ground floor of the building will hold a local food campus and the second floor will contain office and meeting spaces for nonprofits.

The project is estimated to cost around $140 million, financed by a mix of senior debt, public and private grants and tax credit funds, among other sources. Construction is expected to be completed by the end of 2027.

Its design approval comes months after the first phase of Millworks celebrated its grand opening in August 2024.