Bellingham Christian School • Updated 2026
The Bellingham Christian School Board would like to provide greater clarity to members of the association regarding the history and current status of the Hannegan property. The recent news of the proposed sale raised a number of questions from members of our BCS community. We would like to take the opportunity to clarify what has occurred to date, and where we are headed for the future.
The BCS Foundation exists specifically to raise and manage funds in support of the school’s mission. It was chartered in 1983 with the stated purpose of operating exclusively for the benefit of Bellingham Christian School. It receives donations and gifts from individuals, businesses, and organizations, then directs those resources toward initiatives and projects the school’s operating budget may not fully cover. Think of the school as the mission in action and the foundation as the financial engine working behind the scenes to strengthen and sustain it for generations to come. Foundation members are elected by the school’s board of directors and operate under the board’s authority.
The foundation’s books are managed jointly by Lisa Russell, our Finance Director, whose name many of you recognize from monthly school statements, and Darrell Visser, school board Treasurer. Lisa’s involvement is a practical, day-to-day connection between the foundation’s finances and the school’s financial oversight.
When these properties were originally purchased, the foundation did not have sufficient collateral to secure the necessary bank loans. So foundation members created two separate legal entities: BCS V2, LLC (which owns the Hannegan and Bakerview properties) and Sunset Village LLC (which owns the land behind the school used for the townhouse development). These legal entities allowed foundation members to contribute personal assets to acquire the properties and fund development. The banks required this arrangement because it was personal funds from foundation members, not foundation funds, securing the loans.
While these LLCs and the foundation are distinct legal structures, they are managed by the same group of people with the same mission: to steward resources well for the long-term benefit of Bellingham Christian School. All remain fully accountable to the school board.
In 2020, BCS V2 purchased the Hannegan property with a clear vision: build a new K–12 campus for BCS. We engaged architects, worked with the county on permitting, and brought in contractors to establish realistic costs. What we ran into was a dramatic shift in the construction environment. The original $14 million estimate rose to over $30 million in just a few years, driven by rising construction costs and interest rates.
On top of that, the property was 100% privately financed, costing foundation members upwards of $15,000 per month, a burden that was not sustainable long term. The board was not willing to take on significant debt or raise tuition to a level that would make a project of that scale work. It was a hard decision, but the right one. The property was listed for sale at the end of 2025 and is now under contract as of early 2026.
No. The foundation agreed to terms with the county before their intended use for the property was disclosed. We found out weeks after the purchase sale agreement was in place and were genuinely disappointed. At that point, there was nothing we could do, the county had no legal obligation to share that information. The last public update from the county had indicated they already secured a site in Ferndale for a future jail, which made their interest in Hannegan seem like something other than what it turned out to be.
Family donations made during the 2019–2022 season went toward the construction of portables and the expansion of the Sunset upper campus. The initial portables and reunification project totaled approximately $795,000, and subsequent portable additions in 2021 and 2022 were each funded through a combination of fundraising campaigns, grants, and budget allocations.
Early-stage feasibility costs for the Hannegan and Bakerview properties, architect, engineering, and design work totaling approximately $106,000, were handled separately and were not drawn from family donations. The down payment for the Hannegan acquisition came directly from foundation members’ personal funds, not donated funds.
Not exactly. The proceeds are primarily going toward repaying the existing debt and obligations tied to the property. Once those commitments are fulfilled, the foundation will contribute any remaining proceeds to the school but this is not a surprise gain. It is the result of years of careful, generous, and responsible stewardship by the foundation.
The Bakerview property sits adjacent to the Hannegan site and is currently being leased to individuals, which provides sufficient cash flow to pay the property’s holding costs. The current plan is to hold this property as a long-term strategic asset. There is neither cost nor risk to the school to hold this property and, per the terms of the agreement, potential future upside to the school.
The Sunset development was funded through private financing and investment, not tuition dollars. In 2019, the school conveyed ownership of all the Sunset properties to Sunset Village LLC so development could begin. Proceeds from unit sales have been used to pay down construction debt and fund the next phase of building. As the project nears completion in Fall 2026 and remaining units are sold or held as strategic assets, it will begin to build cash reserve assets, which was the plan from the beginning. The timeline extended beyond the original projection due to a volatile market, but the project is now on track.
No. Tuition funds the school’s day-to-day operations and has not been directed toward the foundation, BCS V2, Sunset Village LLC, or any of the Hannegan, Bakerview, or Sunset projects. The foundation supports the school each year by facilitating and raising donations that help balance the annual budget. Going forward, the board’s goal is for the foundation to grow in donor relationship development, endowment management, and business partnerships as it winds down real estate development activity.
The BCS foundation makes decisions on property and development activity under the authority of the school board, ensuring alignment with the school’s mission. The structure is intentional and not uncommon. It allows the foundation to act with the speed and flexibility that complex, multi-year real estate projects require, while staying fully accountable to the board. The board separately oversees the school’s operations and finances. Brent Cowden provides periodic updates to the board on property values, sales, pending transactions, and rentals.
Brent Cowden, along with Darrell Visser, has personally managed these projects — totaling roughly $25 million in real estate activity — for nearly eight years, at no cost to the school or foundation. To put that in perspective, that is the kind of work that would typically require paid consultants, legal fees, and project management overhead running well into six figures annually.
We recognize that families unfamiliar with these individuals may have questions. This model has relied on high-trust relationships rather than traditional institutional controls, which was a practical necessity when these projects began. BCS didn’t have the organizational capacity to undertake this type of work on its own. It required entrusting capable, proven individuals who had a long track record of faithful service to BCS long before any of this started. As we wind down real estate activity and shift the foundation’s focus, we also plan to transition toward more traditional governance structures and controls.
Quite a bit. We learned that good decisions rooted in integrity and with the school’s best interests in mind, don’t always speak for themselves. They need to be communicated clearly and consistently, and well before a news story surfaces. Many families understood the Hannegan property to be a school asset, something that was “ours.” In retrospect, we should have done more to clarify the ownership structure and the evolving direction of these projects.
What we’re taking from this: the board will provide more proactive and regular updates, not just reactive ones. When the foundation is working on something that affects the school’s future, families will hear about it from us first, in plain language, with plenty of context. This FAQ is the first step in that direction, and we are committed to building better communication rhythms going forward. We’re genuinely grateful to the families who asked hard questions, because they are helping us improve as a board.
BCS is committed to providing high quality, Christ-centered education in Bellingham. For the past several years the school has operated with a plan to lease space at Cordata Presbyterian, and the board has been working toward a stable, longer-term arrangement there.
The Bakerview property is being retained long-term as a strategic asset. With the Hannegan and Sunset projects moving toward resolution, we are entering what we believe will be a healthier and more stable financial season than we have seen in a while. There will be funds available to support future facility and infrastructure needs, and the board and foundation are aligned on how to move forward together. We are grateful for your continued trust and patience as we have navigated significant complexity over the past several years. The path forward is clearer than it has been, and we are excited about it.
The school board members are your peers, parents of students at BCS, and they are available to address questions and help find the right answers. The simplest way to reach the board is to email board@bcs-wa.org.
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