Whatcom County Executive Satpal Sidhu speaks during a community event as the county moves forward with plans to relocate the proposed jail site to Hannegan Road in Bellingham.
BELLINGHAM, Wash. — The Whatcom County jail site is moving from Ferndale to Bellingham as county leaders face declining sales tax revenue and rising construction costs, prompting a shift to a Hannegan Road property that could reduce expenses and speed up the project.
Whatcom County plans to buy a 19-acre property at 4160 Hannegan Road for $4.07 million. The Whatcom County Council must still approve the deal.
The county’s decision comes as sales tax revenue tied to the project has declined while construction costs continue to rise. Those pressures have forced officials to look for ways to reduce overall project costs and avoid further delays.
County Executive Satpal Sidhu said the new location offers better construction conditions. He also pointed to a simpler permitting process.
“Better construction conditions, a simpler permitting pathway, more compact construction timeline, and more convenient location – these factors will all save taxpayer money,” Sidhu said.
As a result, county officials estimate the new Whatcom County jail site could save up to $2.5 million in construction costs. They also expect a shorter timeline. That timeline could further reduce overall expenses.
The decision marks a major change for the Whatcom County jail project. It has been tied to the LaBounty Drive site in Ferndale for more than a decade. However, new apartment development has expanded around the area. That growth has changed the setting of the original site.
Meanwhile, the proposed Hannegan Road property sits just south of the Hannegan Speedway. It also sits close to Whatcom County’s Behavioral Health Campus on Division Street.
That campus includes the Anne Deacon Center for Hope. It also includes Didgwalic Wellness Center services and the future Whatcom Behavioral Care Center. Because of that proximity, county leaders say the location may improve coordination between detention, treatment, and diversion programs.
Whatcom County has started working with the City of Bellingham on permitting. The county will also bring the purchase agreement to the council for approval.
Justice Project Ties Jail, Treatment, and Housing Together
The jail project is part of Whatcom County’s broader Justice Project, which aims to reshape how the county handles criminal justice and behavioral health.
The plan includes a new jail and a Behavioral Care Center, along with expanded services for mental health, substance use disorder treatment, and supportive housing.
County leaders are also working with the Sheriff’s Office and Health and Community Services, as well as regional partners, to carry out more than a dozen initiatives tied to the plan.
Advisory groups, including the Incarceration Prevention and Reduction Task Force and the Justice Project Oversight and Planning Committee, provide recommendations as the work moves forward.
As of early 2026, the county continues to debate the size, scope, and budget of the jail. However, officials expect to make key decisions this spring.
Those decisions will guide final design work, which is expected to begin before summer.
At the same time, the county is expanding diversion programs and supportive housing efforts aimed at reducing incarceration.
What To Know About The Whatcom County Jail Site Change
Whatcom County is moving its planned jail site from Ferndale to Hannegan Road in Bellingham after reaching a tentative agreement to purchase a 19-acre property for $4.07 million. County leaders say the new location could save up to $2.5 million and shorten the construction timeline.
The project is part of the broader Justice Project, which includes a new Behavioral Care Center, expanded treatment services, and diversion programs aimed at reducing incarceration. County officials expect to make final decisions on the jail’s size, scope, and budget in spring 2026 before design work begins.
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