It has been nearly three months since the hearing examiner published her decision (click here) on the application of Ambling University Development Group to develop the Puget Neighborhood property known as University Ridge into a student housing complex with 576 beds. Since early November, the city has not heard from the developers, according to Kathy Bell, the city's planner responsible for this particular parcel during the application process. According to the Whatcom County assessor’s property record site, the 11 acres known as Cedar Ridge, Div 2, Tract F remain in the hands of the Irving H JR & Joan F Hawley Trust of Lopez Island, Washington. 

It is understandable that Ambling had to withdraw for a short period to redo their numbers and to redesign the buildings (to units with no more than 3 bedrooms) in order to comply with the findings of the hearing examiner and the Bellingham Municipal Code. With the loss of a bedroom in each of the 124 originally proposed 4 bedroom units, the longer term attractiveness of the project could be problematic. Without knowing a final number of bedrooms in a redesign (to be rented separately) we can only estimate the loss. For example, 50 fewer bedrooms would mean a reduction of about $400,000 per year in gross revenue, and ultimately millions in overall project value. Ambling might also look to reduce costs by making infrastructure or construction quality adjustments. This may prove difficult for an outfit that has been touting its high-end product with hefty rental rates. Moreover, Ambling lost valuable time as it proposed an unusual use (essentially under boarding house rules) some of which was struck down by the hearing examiner.  Ambling’s original plan to actually open the doors of University Ridge in time for the fall session of 2014 have now faded into oblivion. 

The fact that two other similar projects (with an aggregate of approximately 800 beds) are already in the mill for the Lincoln Street corridor must also be weighing on the collective mind of Ambling, as these apartment projects present direct competition within essentially the same housing market, university students.  Understandably, a representative of the developer (Campus Crest Development) demurred when I questioned her about the estimated rental rates of the 584 bed project closest to the Fred Meyer store (Phase II). The developers of the two Lincoln St. apartment projects appear to be ahead of the game. Portions of the work on the development application have been in the works for years. Ambling might very well walk away from University Ridge, but opponents of the project remain vigilant.