City Manager Letter

Please find attached for your consideration a Disposition Report for the Foundry Building. This submittal is also herewith being transmitted to the City Clerk and to the Members of the Planning Board.

As part of the redevelopment of the Foundry Building at 101 Rogers Street, I am recommending that the City Council vote to approve of the disposition of a long-term leasehold interest to the Cambridge Redevelopment Authority (CRA), in accordance with Section 2.110.010(G) of the City's Disposition Ordinance.  The CRA would then issue an RFQ/RFP for a developer to complete necessary improvements, building fit-out, and facilitate the reuse of the Foundry building according to the vision and objectives developed through a robust community process, and within the overall framework requested by the City Council and the community.

The City Council was briefed on this project on December 15, 2014, and the Planning Board was briefed on January 6, 2015.  On February 10, the Planning Board will hear the proposal to dispose of the long-term leasehold and will make a recommendation to the City Council.  Within six weeks of receipt of the City Manager's recommendation and the Planning Board report, the City Council must hold a public hearing to decide on the proposed disposition and the diminution of the full disposition process as described below.  The project also will need City Council approval of a Demonstration Plan pursuant to the provisions of MGL Chapter 121b.   The draft Demonstration Plan was approved by the CRA Board on December 17, 2014.

Proposed Project Disposition

The Foundry building is a former industrial and office building that is currently vacant.  The property was acquired by the City of Cambridge in 2012 from Alexandria Properties in connection with a zoning amendment sought by Alexandria.  The zoning amendment is incorporated into the Cambridge Zoning Ordinance as Section 13.59.10 and states a preference for the Foundry Building's use for municipal or community uses as generally set forth in Section 4.33 of the Table of Use Regulations; and requires at least 10,000 square feet to be devoted to educational, cultural or institutional uses listed in Section 4.33 of the Table of Use Regulations.

The proposed approach to the Foundry Redevelopment is subject to Cambridge Municipal Code Chapter 2.110.010-Disposition of City Property (the "Disposition Ordinance").  Pursuant to the Disposition Ordinance, the City Manager is required to prepare a comprehensive report (the "Disposition Report") addressing the potential uses of the property or property interest to be disposed of, including but not limited to, the financial impact of each use, zoning status, development potential of the property or property interest, and any proposed development plans for the property or property interest.  The Planning Board is required to hold a public hearing, after which it will submit a recommendation to the City Manager for submission to the City Council.  The City Council will then hold a public hearing on the disposition of the leasehold interest in the Foundry and the diminution of process, which each require a 2/3 vote for approval.

As part of the disposition process, I am requesting that the City Council approve a diminution of the full disposition process.  Pursuant to Section 2.110.010(G) of the Disposition Ordinance, the City Council may vote to authorize a diminution of the full disposition process set forth in the Disposition Ordinance. A vote to diminish the full disposition process would allow for disposition of City-owned property where the full process of the Disposition Ordinance would be unduly burdensome, including but not limited to, the property valuation through appraisals and traffic impact studies.

If the disposition is approved by the City Council, the City Manager would then be authorized to negotiate a lease with the CRA, which would be the fundamental document setting forth the relationship regarding the Foundry Building between the City and the CRA.  The terms of the lease, which must also be approved by the CRA Board, will be guided by the approved Demonstration Plan and the Disposition Report.   In addition, the lease between the City and the CRA will require that the CRA conduct a robust, public, and competitive process for selecting a developer for the Foundry, which is designed to leverage the CRA's resources and to accomplish the City's objectives consistent with ongoing community input.