CMA 2017 #332 · Agenda item attachment · Dec 18 2017

December 5, 2017 Louis A, DePasquale City Manager City Mali 795 Massachusetts Avenue Cambridge, MA 02139 Re: Proposed Lease-First Street Garage Dear Mr, DePasquaie: As you are aware, the Massachusetts Appeals Court issued a unanimous ruling on July 19, 2017 that the Suliivan Courthouse qualified as a iawful pre-existing nonconforming structure and therefore the Planning Board acted lawfully in issuing a Special Permit on October 30, 2014 authorizing modifications to the building to allow it to be converted into a mixed use structure containing ground floor retail, 24 dwelling units and office space. On September 28' the Supreme Judidai Court rejected the Plaintiff's request for further appellate review of the Appeals Court ruling. On November 29 the SJC denied the Plaintiffs Plea for Reconsideration of its September 28th ruling. Prior to the issuance of the Special Permit/ in response to a City Coundi Order adopted on March 17, 2014 a Working Group containing neighborhood residents was formed which led to significant design changes to the original proposal, including removing the top two floors of the building/ modifying the facade design to tenracotta, and the creation of a landscaped area along Spring Street. As set forth in its Special Permit application, Leggat McCali is seeking to acquire a long-term parking lease for 420 vehicles in the municipai garage on First Street as part of its redevelopment of the former Courthouse, In addition, Leggat McCall has agreed to enter into a Master Lease Agreement with the City to accept responsibility for developing, leasing, and managing the ground floor retail space within the first fioor of the garage fronting First Street, Now that all of the legal chalienges to the Special Permit have been resolved, Leggat McCalt is requesting that pursuant to the Order adopted by the City Council on October 7, 2013 declaring "420 parking spaces and the first floor retail space at the First Street Garage Property available for disposftten" and authorizing your office to Initiate a process to determine the vaiue of the ieasehotd interest, that you undertake the appropriate action pursuant to Chapter 308 of the Massachusetts Genera! Laws and Chapter 2.110 of the Cambridge Municipal Code to determine the value of the leasehold interest. Thank you for your attention to this matter. Verytru!y ^ ? 6 )"•':•• Robert M. ' yours, . Dickey Executive Vice President l^gyt Md^ll I'-ropcrfits LLC; 10 I'usi Office .Sqimrc Hosron, MA 02109 617,422.7000 fax f)37.422.7002 mw.imp.com

CITY COUNCIL, CAMBRIDGE MASSACHUSETTS Page 1 of 1 City of C ambridge Executive Department RUhsmf C. Rosst • Cify Mttmsgi'r 'V^iBKSS usa c' p^ersml * ^W City Mmwger diy I lull * 795 M^s.'mclmsuit*; AVCIHK; • C;unhrl(t^ts * Mrt'ss.ncIin'.^.'ttK ' t)2l;'i9 617-3.iy-^?) * l\w 61 7";W-43»7 * tlv; 61 7-4^2-02^ * \vww^-iunbDtt^f*i.i.K<>v March 24, 2014 To the Honorable, the City Council: In response to Awaiting Report Item Number 14-16, regarding a report regarding the status of the First Street Garage RFP process, please be advised of the following: As you know, the City Council voted on October 7, 2013 to declare a portion of the City-owned First Street Garage available for disposition by a long term lease of four hundred twenty (420) parking spaces and a portion of the ground floor retail space to Leggat McCaII in connection with their planned development of the former Edward J. Sullivan Courthouse at 40 Thomdike Street, in order to satisfy Leggatt McCall's parking requirements and to secure a retail grocery store on the ground floor of the garage. As I explained in my letter to you of October 7, 2013 (attached), the proposed action by the City Council to declare the property available for disposition by such a leasehold interest would initiate a process, lasting approximately six to eight months, during which the value of the property to be leased would be appraised; a format proposal would be solicited from the potential master lessee; and public hearings would be held to evaluate the proposal. Please be advised that following the City Council's vote on this matter, there has been no further action as to this request by the City administration, and pursuant to the above-referenced Policy Order Resolution of March 17, 2014,1 will take no further action as to this proposed disposition until I receive further guidance from the City Council. Very truly yours, Richard C. Rossi City Manager RCR/mec Attachment http://www2.cambridgema.gov/cityClerk/cmLetterPrint.cfm?meetmgDate-03-24-2014&... 12/14/2017

Policy Order Resolution 0-13 AMENDED ORDER IN CITY COUNCIL Marchl7,20i4 COUNCILLOR CARLONE COUNCILLOR MAZEN COUNCILLOR MCGOVERN COUNCILLOR TOOMEY WHEREAS: The Edward J. Sullivan Cowthouse is a 22-sfory tower located on 40 Thorndike Street that directly abuts the modest residential neighborhood of East Cambridge; snd WHEREAS: The Commonwealth of Massachusetts is in the process of abandoning the Courthouse building and disposing of it through the slate's Division of Capital Asset Management and Maintenance (DCAMM); and WHEREAS; Residents of East Cambridge, who have lived with this inappropriate and overwhelming structure for some forty years, have expressed a preference for a redevelopment project that would reduce the height and bulk of the existing structure; and WHEREAS: On December 14, 2012, irrespective of neighborhood concerns, DCAMM awarded redevelopment rights to Leggat-McCal] Properties based on the developer's proposal to maintain all ofth^ existing height and bulk and "reskin" the structure as a commercial office tower; and WHEREAS: The E^st Cambridge Planning Team has a proud reputation of working with developers to ensure that new development works positively for £he community; and WHEREAS: The Neighborhood Association of East Cambridge is a newiy-formed organization that is seeking recognition from the Community Development Department and has rallied community opposition to the developer's current plans; and WHEREAS; On Wednesday evenmg» February 26,2014, the East Cambridge Planning Team heard from the developer with regard to neighborhood concerns over wind, glare, and light poHution; and WHEREAS; After three hours of discussion and debate before a crowded audieiic&, the East Cambridge Planning Team voted to ask the Planning Board to reject the

developer's Special Pennh: application ^288; and WHEREAS: The vote was recorded as unanimous among ail members present; and WHERBAS: On October 7, 2013, the City Council approved a Request for Proposal (RFP) process to facilitate the transfer ofcity-owned parking spaces at She First Street Garage to the developer in order to help satisfy tlw extensive parking requirements of the proposed ofTfce building: and WHEREAS; The disposition ofcity-owncd parking cannot proceed uniess the City Council, by a vote of two" thirds majority finds that the arrangements specified through the RFP process will lead to the greatest public benefit that can be obtained from the City property in question, pursuant to Chapter 2.110 of the City of Cambridge Municipal Code; now therefore be it ORDERED; That the City Manager be and hereby is requested to report back to the City Council on the status of the First Street Garage RFP process; and be it further ORDERED: That the City Manager be and hereby is requested to confer with City staff to determine the relevant zoning requirements for this property and report back to the City Council on tills is$ue; and be it further RESOLVED; That the City Council go on record to indicate that it will not sfmply consider whether the RFJP's agreed- upon price represents the fair market value offhe city-owned parking spaces in the First Street Garage, but rather, the City Council will listen closely to the concerns of East Cambridge residents and consider the overall impact of the Sullivan Courthouse redevelopment project in order to determine whether the developer's proposal will lead to the greatest public benefit that can be obtained from the CEty property in qu6Stionj pursuant to Chapter 2.110 of the Cambridge Municipal Code; and be it further RESOLVED; TE-iat the City CouncE! go on record strongly encouraging DCAMM and the developer to work together in an expedJtious and creative fashion to substantially reduce the height, traffic, and environmental impacts oftlie developer's proposal so as to gain community support and resolve the great uncertainty that now surrounds the project. In City Council March 1 7,2014 Adopted as amended by the

affirmative vote of nine members, Attest:" Donna P. Lopez, City Clerk A true copy; ATTEST;- Donna P. Lopez, City Cierk Viev Original Order

City of C ambfidge Executive Department /W}^i C, Rossf ^ CUy Mfw^r UM a ^^ 4 D^iy CUy ^w^-r C;iy {"lull * ?a>ti Ma<.sft<Ltni->frEl:» Aviiftin?1' C^!rttwl(l({<* * Mft!iisw^l'ni(,<ntn " tWW 6!7"3^-'t3tXl-rai{t/n'?-3'19~4^»7*i.ty:(i1 ^4^-0^-5 *.\vlwv.tfuwbr1ttKut:MA,rt\»v October 7,2013 I To the Honorable <lie City CoiraeH; - ^ '; Attached is a letter dated September 26,2013 from Leggat McCall Propet-des requesting that, the Cizy of :,; Csmbridge consider th& dispositioii by a tong-tenn tease -to Legg&t McCall of four-'iiundted twenty (420) i;. pftj'king spaces and a portion of the ground floor retail space at the City-owned First Slreet Crarage, Lcsggatt j; MoCalt has requested Ihis in order to satisfy its asserted parking needs in aasociation with Its planned is redeveioproonf oftlio formBV Edward J. Sutiivan Courthouse at 40 Thorndit<% Street^ and to imp-ovo and . | manage tirsfc floor ret&EI space at the First Street Garage to contribute to the vitality of the am, Leggftt McCall stfttss in its i?U?r tli&t one of its goals in improving (he retail space would be to secure a retail grocei-y store as a tenant there, which Leggat McCaH would manage as lessor, through a master lease arrangement with £he grocery sfore as lessee, Potential advanlages to the City from such o, disposlUon include; increased paa'king space revenue from the under-utilized pai'Jcmg garage; incrsased revenue -from now businesses looating in the retail space in tiie garage building; the provision of vatuable retail services to area residents (suoh as a grocery store); making the First Street &re^ more vibrant; snd reducing the City's admtmstratiw burden in managing t^e retail space. An EiptionbytlieCUy Council to declare fMs property available for disposition would initiate a procesa, lastmgapproxima.telysJxtocEghtmonfhSfdRr.mgwIuohthevgiue of the property to be leased would be appraisers formal praposatwonJd be solicited fi"omth<s potential master lessee^ and pubHo hearings woiild be held to evaluate the proposal. At the end of this process, the City CouuoH would decide whether or not to dispose of the property at a specified prKie^ aiong with any other terms and condittons of fhe master lease. Attactiedis a memorandum from th& Director of Traffic, Parking and Transportation to me stating that the 420 parking spaces in the First Street'Garsge and the portion of the-ilist floor retitil space used by the Tfftfflc, Parking and Transportation Department are av&ll&ble for dispositicm so long &s the ftt&as used l^y ^n department are relocated to otlier property sufficient to serve ttie, department's nee^s. The remamd&r of the retail space at th& garage building is curretitly vacant and al^o available for disposition. Property DisposHloTi Process There are two orlfioai steps in tlia property disposition process; a Chapter 30B oftlie MassacMisetts Generat.l/flws requii'ea thatfhe City seoure apprgissls for the property and IRBUC a Inquest for Proposals (RH?) 'from parties that m&y be interested in acquiring the property according to the conditions set forth by the City En the KFP, A winning bidder-would be selectedt but the eventual disposition of the property wouEd be conditioned upon complerlonoffhc additional process set forth 'below. i> Chapter ,2,110 of Che City of Cambridge Municipal Code (&e "Disposition Ordinance*'), oytlines a process required for th& City to dispose ofCity'owned property, which will result in s "fair analysis of

;'?';"K^i^^;K's%.'';; v f;'l%;s%?^'?K^y'i,''^''i'"^1^ ^ ?^^"sy:l ??i'n"-^''w:;:^i'; ' ^^"(^^^wi^ss^'iy ^ ^^^s^cwi'y:1'^""^;^.1;';^'^ ^y^^^wY^-^K'?-.:"-^': w^'?$^fi^w^w^ ^^^^^^^^^^'^ v'l^^S^^^:;;i^^^t:i,,~'^^i5c^ " '"^^•^l;^^^:!;;'?id^! J.li;>?i%^-;i;^'i^;;K;.L^^"' ';" how the greatest p^bUc benefit can be obtained from the City property in question," The City Mainagcr is •recjuit'ed to convene a community meeting to discxiss the matter and submh a detailed report to the City Council, the Pl&nning Board and the City Clerk. The City Council would then refer the matter to separate public hearings by the Panning Board andthe City Couacil» after wHch the City Council raustvoteby a two-thfrds majority to approve disposition of fhepit'operty at an agceed- upon price. If the vote were to fail at fhst time, then the property would remfiin with the City. I am requesting now that the. CHy Councii deolare -the 420 parking spaces and the first floor retail space st the- First Street Garage available for disposition on terms and oondittous satisfaotory to the City, This action would au&orize me to begin Che process of obtaimng appraisals an<! issuing a Request for Proposals, Very truly yours» {^^^/t^-^^ Richard C. Kos?ti City Manager RCR/mec Attgcbmcm'

M^\ wjl Leg^fatMcGall P » 0 P E -R T t & S September 25, 2CU3 $Ensll3pxtW^Wir Richard C. Rosst I Jl City Mftnag&r } • ;.i City H 3)! 795 Msssachusetts Avenue Cambridge, MA 02139 Re: Proposed Lon^-temi lease of Parking Spaces artd POrtEon of Ground Fiofif at Cfty-owned FFrst Street Garage De?rMr. Rossi; As you know/ lesgstMcC^IProp&fties ("L$ggst"}ha?t)esn&eiected by the Division of Capital Asset Management and MBlntftnsrice(ffDCAMM/^3S the successful bidder for the former 1 | ; ii Edward J, Sullivan Ccn(rthovseat40ThornfcStre<itfn Cambridge (the //Courthausef'). leggst Is in the process of preparirig^o seek approvals from the Cambridge Ptenrstng Boarct that will alfowrsdcveiopment and adaptive reusaaftheCourthouse (the "Courthousti Project"), As planning for the Courthause Project has progressedjt has become appgrent that there are opportunities for the Courthou^e Project to meet projecl needs white simuitaneousty advancing both the ffiferests of the neighborhood and the City o? Cambridge, One of those opportunltfes is presented by the underutiifzed City or Cambridge First Street Garage. After extensive evalugtlon of the project's parking need^ and the physical constraints of the Courthouse and other site conditions, Leggst believes that approxtmsteEy 90 parking $pac&s coutd be created within the Courthouse building complex Itsefftn tiie lower two tevets. However, ffom s Isnd use planning perspective, the refnalnder of the courthouse project reined parking ideally would by toc@ti*d [iir&ct!y across the streetin the steady fi^stlngsnd underutiiizsd City-owriyc) ' , ^ First Str&st Carsge, Leggst therefore respectfully requests thst "the City of Cambridge make avsllsble for long term lesse 420 parking spaces within the First Street Garage. By leasing currently unusec! spaces within the First Street Garage, the C(ty of Cambriclge can Increase itsrevenues es5entiallywUhom!ncyrringany6ddtlionalco$tsoi'&b(i^atfo!is, The First Street Gsregc would be more fuity utSHzed for the purpose for which It wa$ originally (Mjcated and ccmstruct9<(, asset forth tn the original fedsral Urbgn Oevelopmem Action Grants that helped finance the garage. I .•.•i"r l.!.;i"n» ('.••).rr>-it t,<i it) Pimi OnTr-<i>i3t]i»ri> ftotnm, MAo'aiOj) ^r?.4aa.7(ioo /iv^r7,^3.76CiB wnf,l?np.^<,i»i

'SS-'''! Richard C. Rossi September 26,2013 Page 2 Moreover, as tiart of its lesse of paring, spitces wfthin the garsge, Leggat vi/oit!d also be willing through a Master Lease arrangement to accept responstbEI'rtyfor ingftagement of(iroynd floor retaiispscewtthlntha first tioor of tha garage. Through a Master Lease, leggatwoulct commil, to improvttig -that retail spa^e, with the gost of securiiig fi retaf! grocery store as a tenant. Leggat betteVfisthat such a Master lease coutd relieve the City of admtnlstrstlw burdens while <tt-the same tims securing for the City ?tirere\/enwthan it currently schieveEs WebetEwc tha-t the proposed improvements t& the garagfi, w^ ths resulting active retsil uses siong this portion of first St^et/materfaily help to advance the Clt/s panning obiectlves for this grea bv contributing to the vitality o'f Rrst Street and providing valuable retail services to 9rea residents, [t !s our understandtng that (casing (tie 4.3:0 parking spaces and the ground floor oFfhe garage in tb$ manner described herein would constitute s disposition of Ctty Owned Propsrty and thus could be subject to ths Chapter 306 process asweEi 3$ the provisions of Chapter 2.110 of the Cambridge Munfcipaj Code, We respectMiy suggest that, if the City wishes to pursue consideration of both the lesso of 420-parMng spaces within the garage, and a master Ie9S$ of ground ^(oor rotait spdce within the garage/ then the valuation process and ultimate gpproval of the lease by the City should: (i) separ^teiy estgbilsh s vaiue for the long'term lease gf 420 parking spaces within the First Street Garage, &nd the first floor iretatl space Master Lease; gnd (il) squire responsive proposals to address. In combtnatton, both the long-Urrti Isase of the parking spaces and the faase of the first Roor retail space. Thsnk you for your attention to this fmportgnt issue. I wouid bs pleased to m^etwlfh you So discuss our request further. V^ry truly yours, \ /fc^7<, J)- Robert M.Oickey Executive Vice Preslderrt/Part'ner Irift-il \1,'t.;'U ll(0pfr;u> ].U',;

WHEHBAS: WHEREAS; WHEREAS: WHEREAS; iNe Agtsnda Itom No. 8A IN CITY COUNCIL October?, 2013 Leggat McCatl Propeiktics has requ&sted th&t the City of Cambridge ("City1*) mitke avsil&.blc for disposition a long-term, leasehold interest to LsggEitt. 'McCaIl offour-hzmdred tw&nty (420) pai'kmg spaces &nd & portion oflhe ground floor retail space at the CHy-owned First Street G&rage, located cm the east side of Thorndike Street between Second Street and First Street (the "Pccperty"), m order to satisfy its asserted parking needs in assooxation with its planned redevelopment of the fonner Edward J, Sullivan Coui-thous^. at 40 Thomdike Street, and to improve and manage first floor ret^ii space st th& Ptoperty to contribute to the vitatlfy oftfie area. Leg&aU McCall states in its letter that one of its goals in hnprovlng fhe retail space would be to secure & rci&ii grocery store as a tenant tlier?, whicli i/eggatt McCall would manage as lessor through a master lease arrangement with the grocery sfore as lessee; and Potential advanfsges to the City fiom suoli a disposition -include; incr&ased parking space >;svenne from the undeMitUized parking garage: increased revomie from new businsssw locating iri the retail spsce in the Property; tlzft provision of valuable retail servicies to area r&sidents (such as a grocery store); making the First Street area mor6 vibrant; and reducing the Ctty s sdmmistrative burden m m&nagmg the rstml space at the Property; and Chapter 30B of the Massschusetts General Laws requires th&t £he City secure appraisals for th? value of the proposed leasehold interest and issue a Request for Proposals (RPP) from partieB that may be intfflrei'tedin acquiring a leasehold interest ac-cording to tiie conditions set forth by the City in the RFP. A winning bidder would be selected, but the eventusl disposition of th? leaselioN ititerest would be conditioned upon completion of the! additional process &et forth beEow, and Chsptec 2,310 of the Cily of Cambridge M.ynicipai Code (the "Disposition Otdinance"), outlinea a process required for the City to dispose ofChy-ovraed ptoperty, wMc'h wtll result in 8 "fait' finalysis of how the greatest public benefit can be obtained from the City property in question," The City Manager is required to convene a oommmrty meeting to discuss ^he matter ?d submit a detailed report to the CHy Counoiti the Plamtmg Board and tho City Clerk, The City Council would then refer the mtter to separate public hearings by the Planning Board and the City Council, after wliich the City Couttcil mrmsi vote by a two-thirds m&jorily to approve digpositlon oftlie leaseEiold interest at ftn agree4"»pou price. If the vote were to fail at that tfirsc, then there would be no disposition of s. leasehold interest in the Property; and

WHEJEIRAS An. action by the City Council to deolaro Ihis iessehold interest available for dispoisitioa woufd imtEate a process, lasting apptoximatety six to eight morrfhs, during which the v&iue of the Icnschold mtertest would be gppraised^ a, fonn&l p?posal would be solicit^ •from the potential master lessee, and public hearmgs would be held to evaluate the proposal At the end of this prooess» t;he City Counpil would decide whether or not to dispose of a leasehold interest a£ a, specified price, along with &ny other terms and. conditions ofth$ inast&r iiiasc.; now thfrfcfore be it ORDERED: Tha-t fcs City Council hereby dodares fhe 420 paridng spaoss and the first floor retml spaoea.EtheFirstStreetGaragePropeirtysvaiSable for disposition by lease on terms and conditions satisfactory to the City, and authorizes the City Manager to isittate a process pursiumt to Chapter SOB of the Mftssaohusetts Oen&ral La'ws, Cbapter 2.110 of the Cambridge Municipal Code, and other applicable Isws, dwing wliioh tlie vaixie of the leasehold inteTest will be ftppraised, foTmdi pi'oposah wHt be sottoited from interested partisSi and pijbHo liearimgs will be lield, which wiH resyit in a fair analysis of how the greatest public benefit can be obtsined ffom the disposition of a loas&hold interest and assist the City Council In del-caninmg whefher and on wli^t terms to dispose of a leiisehold interest at tLe Pt-operty. In City Council October 7, 2013 Adopted by a yea and nay vote:- Ye&s 9; Nays 0; Absenl 0; Present 0. Attest;" Donna P. Lopez, City Clerk A ti-u? copy; ATTEST;" DonngP. Lopez, City CEerk