additional clarification in writing around my further amendment to the Linkage Fee Petition, including a table showing a more complete picture of the city’s smaller project commercial development pipeline

CAMBRIDGE CITY COUNCIL Quinton Y. Zondervan City Councillor, Ordinance Committee Co-Chair To my colleagues: I wanted to provide additional clarification in writing around my further amendment to the Linkage Fee Petition, including a table showing a more complete picture of the city’s smaller project commercial development pipeline. 1. The development pipeline for commercial buildings between 30,000 and 100,000 square feet is at this point much more substantial than it has been in the past. Several hotel and biotech proposals in this range have recently come forward as a result of zoning changes in Central Square (2017) and Harvard Square (2018). Most of the recent projects would not have been allowed under the previous zoning. This relative boom has occurred despite steadily rising linkage fees. 2. The petition as currently amended leaves $1 million on the table for each commercial project above 30,000 square feet that goes forward, as compared to the originally proposed flat $33.34 increase (because 30,000 sqft x $33.34 = $1,000,200). This adds up quickly and would easily translate to a lost $20-30 million in a short amount of time, potentially even meaning one fewer affordable housing project for our city. 3. Projects smaller than 80,000 square feet would enjoy a reduced linkage fee contribution as compared to what is currently on the books. Biotech, hotels, and other commercial use projects in this range should be held accountable for their impact on the housing market, and failing to do so potentially undermines the entire legal framework of the linkage fee in the incentive zoning ordinance! There is no reason to backslide from what developers are currently expecting to pay. 4. Nobody has rationalized this version of Incentive Zoning through the lens of a Nexus Study, creating further potential legal exposure that could be exploited to undermine the entire program, thereby endangering a critical source of funding for our affordable housing programs. 5. My further compromise amendment leaves less money on the table per future project ($367,200) and mitigates the risk of legal exposure to the argument that our Incentive Zoning Ordinance is an illegal tax, all while continuing to accomplish the council’s intent of easing the impact on smaller projects as compared to the original proposal. CITY HALL, CAMBRIDGE, MASSACHUSETTS 02139

The following table shows recently completed projects and the upcoming development pipeline for buildings under 100,000 square feet, in addition to a few representative examples of larger projects. While almost all of these projects would not be subject to the amended ordinance or even the current linkage fee of $21.02, it is useful to consider them as representative examples of the type of commercial development that occurs in our city over a relatively short period of time. Building Description Status Square footage Current ($21.02) Amended (30K @ 0.00) Proposed (30K @ 21.02) 907 Main Hotel/nightlife Operational 29,860 $0.00 $0.00 $0.00 10 North Point Education Operational 40,573 $856,090.30 $352,503.82 $985,503.82 711 Mass Ave Hotel/retail Permitted 41,895 $883,984.50 $396,579.30 $1,029,579.30 600 Mass Ave Mixed use Permitted 46,476 $980,643.60 $549,309.84 $1,182,309.84 Middle East Hotel/nightlife Conceptual 53,847 $1,136,171.70 $795,058.98 $1,428,058.98 121 First Office/retail Operational 57,000 $1,202,700.00 $900,180.00 $1,533,180.00 180 Fawcett Biotech Permitted 58,456 $1,233,421.60 $948,723.04 $1,581,723.04 Abbot Building Mixed use Operational 75,762 $1,598,578.20 $1,525,705.08 $2,158,705.08 The Garage Biotech Permitted 87,494 $1,846,123.40 $1,916,849.96 $2,549,849.96 Ragon Institute medical research Construction 185,810 $3,920,591.00 $5,194,705.40 $5,827,705.40 15 Wilson Biotech Lab 280,046 $5,908,970.60 $8,336,533.64 $8,969,533.64 585 Third Biotech and arts center Permitted 500,000 $10,550,000.00 $15,669,800.00 $16,302,800.00 IQHQ Biotech Permitted 735,000 $15,508,500.00 $23,504,700.00 $24,137,700.00 Volpe PUD Mixed use Permitted 1,589,587 $33,540,285.70 $51,996,630.58 $52,629,630.58 Sincerely, Quinton Y. Zondervan Cambridge City Councillor 2