What Mayor Lund’s New Executive Order Actually Does (And Doesn’t Do)

In June, Bellingham Mayor Kim Lund signed an executive order aimed at strengthening economic opportunity, revitalizing downtown, and making it easier to start, expand, and invest in businesses throughout the city. The announcement generated positive local headlines, but it also left many residents and business owners wondering exactly what the executive order does.

What the Executive Order Does

The executive order outlines the Mayor’s economic development priorities and directs City departments to focus on those priorities. Because an executive order is not new legislation, it does not change City code, taxes, or regulations. Any proposals requiring changes to City law, such as the proposed downtown B&O tax exemption, must still be approved through the City’s legislative process.

The order directs City departments to focus on several key initiatives, including:

• Creating a business “concierge” to help entrepreneurs and developers navigate permitting and City processes.

• Reviewing permitting, licensing, and regulations to identify unnecessary delays and barriers.

• Prioritizing efforts to fill vacant downtown storefronts and streamlining approvals for businesses locating downtown.

• Working with the Port of Bellingham to support waterfront redevelopment and family-wage job creation.

• Promoting existing economic development incentives that many businesses may not know are available.

• Strengthening partnerships with local colleges to better connect graduates with local employers.

One of the executive order’s most significant proposals is a seven-year City Business & Occupation (B&O) tax exemption for qualifying businesses opening downtown locations.

The City B&O tax is a tax on a business’s gross receipts rather than its profits. Under this proposal, qualifying new downtown businesses would receive a temporary exemption from that City tax for seven years.

The incentive is intended to encourage new business investment and help fill vacant storefronts, but it is only one component of the broader executive order. Because creating the tax exemption requires a change to City code, it must still be approved by the City Council. The proposal has already advanced through much of the City’s legislative process. On July 14, the Community & Economic Development Committee voted to recommend the ordinance to the full Council. Later that evening, the Council approved it on first and second reading. A final vote is scheduled for July 27. If approved, the ordinance will take effect 15 days after final passage.

What the Executive Order Does Not Do

This is an important distinction.

An executive order is a management directive. It tells City staff what the Mayor wants them to prioritize, but it does not create new laws.

That means the order does not:

• Automatically reduce taxes.

• Change zoning or development regulations.

• Appropriate new funding.

• Amend City code.

• Implement the proposed downtown B&O tax exemption without City Council approval.

Many of the executive order’s broader policy goals will likewise require future ordinances, budget decisions, or administrative implementation before residents and businesses see measurable changes.

Why This Matters

Whether you support the Mayor’s approach or believe additional changes are needed, the executive order signals an important shift in the conversation.

For several years, much of the City’s public discussion around affordability has centered on housing. This order acknowledges another side of that equation: creating more family-wage jobs, supporting entrepreneurship, attracting private investment, and strengthening Bellingham’s long-term economic base.

Whether those goals become measurable results will depend less on the executive order itself and more on the actions that follow by the Mayor and City Council. The City’s ability to work collaboratively with employers, developers, and the broader business community will play an important role in determining whether these initiatives translate into sustained job growth and private investment.

As implementation moves forward, here are a few questions worth watching after the July 27 vote:

• Will permitting timelines improve?

• Will businesses experience fewer regulatory hurdles?

• Will vacant storefronts become occupied?

• Will additional family-wage employers choose to invest or expand in Bellingham?

• Will the City Council approve additional policy changes needed to implement the Mayor’s vision?

Executive orders can establish priorities and set direction, whether at the local, state, or federal level. Meaningful policy change, however, ultimately depends on implementation, legislative action where required, and measurable results over time.

Future 42 believes informed and engaged citizens make stronger communities. We encourage you to read the executive order for yourself, follow how these initiatives develop, and stay engaged as the City Council considers future policy changes.

Learn more and stay involved:

City Council agendas, meeting materials, and videos: https://cob.org/gov/council/meetings

Email the City Council: ccmail@cob.org.

One More Thing…

Another important City Council vote is coming Monday. Watch your inbox this weekend for a brief Future 42 update before the Council takes action.