This was a controversial project in Bellingham from day one. Issues, people were arguing about, included (1) the fact it would be a monster of a tall building compared to anything we are accustomed to -- this is not Seattle; (2) the project could block views of the bay.
Well, now it looks like this has broken loose into a major and big-money dispute. The city has guidelines, when permits are issued, that specify when a project must be completed. They want progress. In this case, the city pulled the permit because they believed that appropriate time-lines were not being met by developers. Now the project developers claim that action by the city has killed the tower and that they were working on the project all along. Developers are threatening to sue the city for nearly $4 million.
If you want all the scuttlebutt, you can read it here in the Bellingham Herald, the local paper, where it is a main headline.