a report from Councillor Sumbul Siddiqui, Chair of the Economic Development and University Relations Committee, for a public hearing held on March 28, 2018 to discuss Retail Strategic Plan

C. C. 106 Oity of Cambringe ECONOMIC DEVELOPMENT AND UNIVERSITY RELATIONS In City Council April 30, 2018 Councillor Timothy J. Toomey, Jr. Councillor Quinton J. Zondervan The Economic Development and University Relations Committee held a public hearing on March 28, 2018 at 12:00 p.m.in the Sullivan Chamber. The purpose of the hearing was to discuss the implementation of several aspects of the Retail Strategic Plan, including pop-up activation of empty storefronts and an update on the potential for an empty storefront ordinance. Present at the hearing were Councillor Siddiqui, Chair of the Committee, Councillor Mallon, Councillor Toomey, Vice Mayor Devereux, Councillor Carlone, Councillor Zondervan, Louis DePasquale, City Manager, Lisa Peterson, Deputy City Manager, David Kale, Assistant City Manager for Fiscal Affairs, Iram Farooq, Assistant City Manager for Community Development, Lisa Hemmerle, Economic Development Director, Christina DiLisio, Pardis Saffari, Senior Economic Development Specialist, Community Development Department (CDD), Robert Reardon, Director of Assessing, Anna Lee Hirschi, Aide to Councillor Siddiqui, Allison Daley, Aide to Councillor Toomey, Malt McLaughlin, Aide to Councilior Carlone and Deputy City Clerk Paula M. Crane. Also present were Adriane Musgrave, Executive Director, Cambridge Local First, Michael Monestime, Executive Director of the Central Square Business Association (CSBA), Denise Jillson, Executive Director, Harvard Square Business Association (HSBA), Jason Alves, Executive Director, East Cambridge Business Association (ECBA), and Judith Nathans. Councillor Siddiqui convened the hearing and read from prepared opening remarks. (ATTACHMENT A). Ms. Hemmerle gave a summary of a PowerPoint presentation regarding the Retail Strategy for the City of Cambridge (ATTACHMENT B). Ms. Hemmerle noted that this is the same presentation that was given to the Planning Board on January 4, 2018 so a lot of the intormation included in the presentation is base data. She noted that this plan is also available online on the Economic Development Department and Community Development Department website. Ms. Farooq added that the Economic Development Department has done incredible work in terms of identifying challenges that relate to small businesses and in working with the consultant 1o come up with strategies that the City can utilize to help solve retail challenges that are not only unique to Cambridge.

Councillor Siddiqui thanked Ms. Hemmerle for the presentation. She said that as a City Councillor and as a Chair of the Committee, one of her goals is to really get a sense of what the progress has been and how the City is executing the goals. She said that she has some questions about the vacant storefront research that she will follow-up with later in the hearing Councillor Carlone asked if all of the recommendations by Larisa Ortiz Associates were included in the study. He asked if there were recommendations of the consultant that were not addressed. Ms. Hemmerle responded in the affirmative and explained that the recommendations regarding the ability to offer legal services and the use of CDBG funds are being evaluated to determine if they can be implemented in Massachusetts due to limitations of Massachusetts State laws. Councillor Mallon asked Ms. Hemmerle if the additional full-time position will be added to the budget. Ms. Hemmerle responded in the affirmative. Councillor Mallon said that one of the things that keeps food trucks from being successful is regional issues as well as processes and licensure. Ms. Hemmerle responded that they have recently learned of this issue and there is interest in streamlining the process. In response to a question from Councillor Mallon, Ms. Saffari explained that intercept surveys have been conducted to determine how people are shopping. She noted that New York has combined the survey with other assessments such as parking and transit, retail mix, etc. She noted that a survey was conducted in Central Square with shoppers as well as merchants to receive feedback. She noted that a report from this survey will include information that will be useful to the Economic Development Department and the CSBA to determine how to help in the efforts of the CSBA. Vice Mayor Devereux said it is great that there is focus on Central Square but noted that Harvard Square needs to get a lot of attention as soon as possible to figure out how much intervention is necessary. She explained that at the previous evening's Planning Board hearing, the Abbott building was approved. She said that there will be construction which will impact businesses. She added that there will also be City and MBTA projects added to the mix. She said that the public feeling is that the Harvard Square is on life support and the HSBA does not feel the same. She said that resources need to be devoted there to keep the square vibrant. She emphasized that this is a priority when thinking about where to focus energy. Councillor Carlone said that he attended that Planning Board meeting and stated that the project has really improved in a positive urban design. He said that the impact of the project really concerns local business owners who were present at the meeting and they specifically asked if the parking fund could be a fund that would be able to soften the impact of construction on local businesses. He said that the owners are fearful of the impact on the local businesses, especially after the Holyoke Center project. He stated that he is completely supportive of positive improvements and adding more continuity in retail frontage. He questioned if there is a way 1o help these businesses to stay alive when many factors affect a business during private and public construction. He explained that he wants to see proactive retail planning for a finished product. Ms. Farooq said that the City has heard the concerns regarding Harvard Square and they are thinking about what might be possible. She stated that her sense, from a non-legal point of view,

it that it is not possible in the current formulation of the Harvard Square Improvement Fund to allocate funds to offset parking validation and other things. She said there would be a need to investigate if this could be possible in a modification. She said that construction is disruptive but there may be flexibility on the City side to help support people. Councillor Cartone spoke about the Huron Avenue area construction project and noted that the value of a retail property goes down because the retail sales go down. He asked if there is a way to have retail owners come in and request an abatement of some sort. He acknowledged that because some small businesses do not own the buildings in which they are housed, there is a complexity to the issue. Mr. Reardon responded that the Assessor's Office looks at every appeal that is filed. He said that in a lot of ways it does not flow to the tenant through a triple net lease. He said that they are more than willing to look to see if something can be done, especially for mitigating multi-year construction projects. Vice Mayor Devereux said that it would fall to the property owner to come forward to say that they feel that they have a case. She asked if the evaluation of a property could be temporarily reduced. Mr. Reardon said that many property owners will file an appeal, which is encouraged. He said that it is tricky when it is not a triple net lease. He added that if a tenant occupies over 51% of the space, they can apply on their own. Councillor Mallon asked if this would only be available if the project is a city project or could a person apply if it relates to a private development project. Mr. Reardon said that if there is something beyond their control that is impacting value, it will certainly be evaluated. He explained that if market value is impacted, they will take this into consideration. Councillor Siddiqui asked if abatement information is available on the City Assessor's website. Mr. Reardon responded that the abatement application is on the website but it could be expounded upon. He encouraged the business associations to pass along this information to its members as well. He said that any concerns should be addressed to the Assessor's Office. Councillor Zondervan asked if there are any special considerations or thoughts on how to integrate the newer kinds of business opportunities, such as cannabis, into the retail environment. Ms. Hemmerle responded that they are waiting to see what the regulations will be. She said that the City wants to ensure that the businesses such establishments are not negatively impacted from the standpoint of active uses. As it relates to cannabis, Ms. Farooq added that it is very early for the City to figure out a strategy. She said that they are working to schedule a meeting with the City Council to determine policy directions with clarity before they can talk to businesses about possible opportunities. Councillor Zondervan asked if there were special provisions for food trucks. Ms. DiLisio responded that that they wanted to ensure that there was enough space for the limited locations. She said that for application process, they asked business owners to self-identify as minority or women-owned. If they identified as such they got a point in the process. The owners were asked if the business had been open for 2 years or less, if they had a brick and mortar location in Cambridge, and if they had any regular vending in Cambridge. She noted that the highest score was 6. She said that this allowed the City to see how food trucks were ranking to determine which would be given space. Councillor Zondervan asked about minority and women-owned statistics. Ms. DiLisio responded that 16 trucks are tentatively scheduled with 14 that self-

identified as women or minority owned. Ms. Hemmerle explained that this is the first program in which they have used this set of criteria. She said that the result of the program leads them to think that this strategy can be utilized in other programs in the city, and that the Envision Cambridge process is focused on meeting social equity needs. Ms. Safari said that the majority of programs are well-attended by minority and women-owned businesses and that they partner with the Center for Women & Enterprise. She said that they have been working on ensuring that that they provide assistance to those who do not have lot of access. Councillor Siddiqui said that she would love to have a sense of where we are on the progress of helping minority and women-owned businesses. She said that 14 out of 16 minority or women- owned food trucks in the pilot program is an incredible number. She said that we need to figure out how to evaluate the work on that and highlight that work. Vice Mayor Devereux said that the Table of Uses is being looked at with Envison project and asked if there is any consideration on how parking requirements affect these uses. Ms. Saffari said that they are in preliminary discussions around the retail section of the land use. She said that when looking at the recommendations of the retail strategy, what are the ways to expand or provide new uses. She noted that they are looking at parking and stated that there is more information to come. Councillor Siddiqui asked about the timeline as it relates to Land Use Classifications. Ms. Farooq responded that they have just begun internal work on that at CDD and they need to have a conversation with City Solicitor to ensure that everything is consistent. She said that they are in the early stages but the hope is that it will be before the full City Council in the next couple of months. She said that they are focusing on the retail side on the Table of Uses. She said that parking is challenging if it is a Change in Use and it triggers a new kind of parking but one of the concerns that they hear from retail clusters and districts is the availability of parking for customers. She said that they are trying to balance all elements. Councillor Siddiqui said that the Retail Strategy report mentions that the permitting process is onerous. She said that she would like to hear how are we thinking about making permitting less onerous. Ms. Hemmerle said that it is tied to the Land Use classifications in many ways. She said that some of the uses are not allowed. She explained that some of the new types of businesses automatically must get a variance which adds time to the process. She said that in some cases, people are paying rent before they have received permitting for their business. Adriane Musgrave said that Cambridge Local First has a thriving local business community who is working hard to bring innovative ideas and concepts to Cambridge. She emphasized that some business owners feel dead on arrival. Receiving clear feedback would be very helpful. She said that people sign a lease with the expectation that there will be no problems and that is not the case. She said that when talking about leveling the playing field for an independent business owner versus a large chain, the large chain has the capital to withstand the delay. She highlighted that rents are really high in the city, especially with the construction and on-line buying. She said that in talking to rental experts, some rents are in high traffic areas but there is no ability for all of the drivers to park and go to the businesses. She said that there are small property owners who do not have any idea of what is a fair rent. She said that she would like to

see the landlord community come together with a rent analysis to see what is fair and reasonable across the city. She said that it is important for business owners to become more digitally savvy and Cambridge Local First would like to partner with the ongoing efforts to help business owners in this area. She asked about technical assistance that is being provided. Ms. Saffari said that they have a lot of workshops on social media education with hands-on education. Ms. Heminerle added that she will be happy to forward information about the Small Business Enhancement Program. She said that EDD is more than happy to think about new ideas, especially as it relates to workshops and educational programs. Ms. Musgrave said that the programs that the City offers are phenomenal. She said that one of the biggest problems is that too few business owners know that they are available. She noted that Cambridge Local First is a staff of one and other business associations are strapped for resources. She said that she would love for Cambridge Local First to be a megaphone for the programs that are offered and they have the ability to reach out to all of the businesses. She said that there is a local Pakistani store that would love resources but she needs to stop by in person. She said that Cambridge Local First could be a real resource to help with marketing. As it relates to the retail components of the land use classification table, Ms. Farooq said that CDD is front-ending the retail component of the land use classification changes. She stated that the issue regarding the price of rents is difficult as it is a private transaction. She said that the City can convene property owners and have the conversation on the importance of supporting local retailers, but the City cannot set a rental price for a private owner. She said that many property owners recognize the importance of what is on the ground floor in terms of the ability of how to lease the above. She stated that in terms of marketing, they have an extensive mailing list with people who receive information about programs. She welcomed the business associations to be the connection to their members. Ms. Musgrave said that Cambridge Local First would appreciate the City's ability to convene a property owners summit or informal roundiable to discuss the issue. Vice Mayor Devereux said that in the residential market, technology has enabled buyers to know the amount of what a property has sold for. She asked if this exists to the same degree in the retail environment. She said that there is a business opportunity to start a platform to open that kind of information because information is power. Mr. Reardon said that this information is available. He explained that it is not as simple as buying a house, per se, and it is market-related transactions. Vice Mayor Devereux asked if the City can make this information available. Mr. Reardon noted that it is proprietary information but added that a business association can purchase a license to the database the city uses to access this information. Jason Alves said that the Retail Strategy is something that is good to fall back on and is very useful. He said that small business owners worry about rents and external costs. He said that the City's efforts to pick up recycling for small businesses was a huge win for small businesses. He stated that when these things happen it helps to bridge the relationship between small businesses and the City. He said that as it relates to construction, East Cambridge is doing what it can to get ahead of the game before construction takes place. He stated that the news regarding abatements

is positive. He said that the ECBA is having the conversations around the issue of cannabis and they are trying to keep people educated. Michael Monestime said that the City does a great job and he feels well-supported with the resources and opportunities to connect with the City to help improve upon the district. He said that Ms. Jillson does a great job in Harvard Square. He said that the C'SBA wants to make Central Square more experiential. He said that in the past, there was an ordinance around vacancies and property owners who leave storefronts vacant for a long period of time. He said hat utilizing some of the residential parking that runs parallel to the connercial districts throug he day is a way to add additional parking. He questioned if there is a way to offset hours tha give more parking in commercial districts. He said that the idea of bringing together property owners is a great idea. Denise Jillson said that Harvard Square is 95% occupied but the vacancies that they do have are fairly significant. She said that the creation of an ordinance that gives some sort of timeline for vacancies would be beneficial. She said that property owners have an expectation for a certain amount of rent. She said that when buildings are allowed to remain vacant for long periods of time, is it problematic. She said that Harvard Square has had a significant building in the dark for 8 years which causes an adverse economic impact on the businesses in Harvard Square. She said that the other issue that she hears from new businesses is that it is difficult to get permitted in the city. She said that she appreciates the detail around safety and mitigation of disruptions, but somehow it should never take as long as it takes. She talked about an encampment that has been present for many months which has an impact on the business community. Councillor Siddiqui talked about the handout titled Action Plan-Roles and Responsibilities (ATTACHMENT C) and said that pop-up activation of empty storefronts should be among the next steps. Ms. Hammerle said that EDD has begun working on a consultancy project to look at vacant storefront activation strategies. She said that vacancies in Harvard Square are large but the vacancy in Cambridge in retail is 1.5%. She noted that nationally this number is 12%. She said that the City is poised to do well with the purchasing pattern that we are seeing. She said that EDD wants to look at activation strategies that they can look at regionally and nationally. She said that Arlington is the only town in Massachusetts that has a vacant storefront bylaw that focuses specifically on retail vacancies. She said that EDD is speaking to Larissa Ortiz Associates to bring them onboard to identify strategies and best practices which may include pop-ups. She said that they hope to get this process started soon. Councillor Carlone stated the difference between a vacant storefront and an abandoned property such as the former Evergood Market which exaggerates the fact that the store is empty. He said that it is almost an insult to the neighborhood and added that the property owner does not respond. Vice Mayor Devereux said that in the Town of Arlington, artwork is placed in the windows of vacant storefronts which makes the properties look more attractive. She suggested that this could be a solution for Cambridge vacant storefronts on an interim basis at properties such as the Evergood Market. She asserted that this would go a long way in making that location more attractive. Vice Mayor Devereux said that attractive banners placed in vacant storefront

windows in Harvard Square is a good way to make the storefronts more attractive. Councillor Siddiqui stated that she agrees that this would be a beneficial first step. Councillor Zondervan asked if there is an inventory of storefronts that have been vacant for longer than one year. He said that there are high profile vacancies in the City and it is necessary to act. Mis. Hemmerle responded that currently there is not a list of vacancies but that the City uses CoStar, the real estate database. She said that it is important to look at the activation strategies to figure out a way to work together to ensure that those spaces are more active. She said that the ECBA proactively identifies areas where they can undertake activation strategies. She said that the business associations can be very helpful in this regard which could be an interim step. Councillor Zondervan said that activation is great but it does not address the Harvard Square Theater situation. He said that we need to look at encouraging property owners to rent out their spaces and not landbank them. Ms. Farooq said that it is clear to her that the committee wants to move more expeditiously. She said that she is cognizant of capacity issues. She said that the City Manager will bring forward new staff person and realistically, this will be a significant program which will require a lot of man hours to implement so it would make sense to have that person on board. She urged the committee to be patient in terms of capacity. Councillor Mallon said that she is hearing urgency from business owners in Harvard Square and she asked if there is a way to work with the Arts Council to ensure that there is something in vacant storefront windows to activate the space. Councillor Carlone said that there is no shortage of art-related work or artists willing to show their work in the City but there are complications. For instance, CVS on Massachusetts Avenue by Otto Pizza looks empty but it is not. He said that when CVS was approached by students who wanted to put displays in the vacant storefront window, the property owners was amenable but CVS said that they could not due to legal requirements. He said that pop-ups are great in places where there is no activation. He said that it would be important to ensure that the pop-up was non-competitive in nature to the brick and mortar businesses in the area as they are required to pay rent, salaries, etc. Councillor Siddiqui said that it will be critical to involve the businesses and community into the process. Ms. Musgrave stated that pop-ups and vacant storefronts could be used to experiment with new retail formats. She said that small business owners cannot afford a space buildout so there is a larger educational component that can take place. There are popups happening in the Boston area. She noted that Isenberg Projects has done a lot of cool things. She explained that the woman who runs it used to work in Harvard Square and she is knowledgeable in Massachusetts laws. She said that she is nationally recognized and in our backyard. She suggested that rather than a months' long study, we could contract and experiment with this organization. Michael Monestime said that there are not a lot of vacancies in Central Square but the Intercontinental storefront has been vacant for over five years and the Out of the Blue is vacant.

He noted that the Mass and Main project will bring three blocks of retail to the square but they will be small footprints. He asked if there is a way to incentivize property owners to reduce their footprints to be 2 or 3 in the space of 1. Public Comment began at 1:48 p.m. Judith Nathans, Putnam Avenue, Cambridge, stated that the meetings have been incredible. She asked why these meetings are not recorded and available online. She stated that the minutes are great but you must wait for those to be prepared. Public Comment was closed at 1:49 p.m. Councillor Carlone stated that the City Council recently passed a Policy Order on April 2, 2018 (ATTACHMENT D) asking the City Manager to consult with the City Solicitor regarding the feasibility of requiring property owners to give the City written notice when a storefront becomes vacant with a plan for finding a new tenant and keeping the premises tidy and in compliance witl ll applicable codes to mitigate any negative effects or safety concerns of the neighborhood. H‹ said that he looks forward to hearing a response to this Policy Order. Mr. DePasquale stated that he will look into this matter. Mr. Reardon said that there is difficulty when defining abandoned versus vacant. Councillor Carlone stated that there are vacant residential buildings and certainly that would qualify. He stated that although this is a different need, the City could take action. He stated that the impact grows and it affects neighbors. jobs and taxes. Ms. Jillson suggested a policy that states that if first floor retail is empty or appears to be empty, there are certain things would be required by the City, like requiring storefront be kept clean and tidy. Councillor Devereux said that she has talked with the owner of former Hidden Sweets location and they are working diligently to lease the space. Jason Alves reminded the committee that there is a difference in scale when thinking about a resident property owner and a large property owner. He asked the committee to keep the small resident owners in mind when thinking about potential policies that could be implemented. He noted that there could be a detrimental effect on small property owners. He said that an arts- based program that was standardized to homeowners would be a less difficult conversation to have with the owners. Councillor Siddiqui thanked all those present for their attendance. The hearing adjourned at 2:01p.m. on a voice vote.

For the Committee, sumbul sadigui pr Councillor Sumbul Siddiqui, Chai Economic Development and University I Committee

Attachment A Hello everyone, thank you for coming. I am excited to have us all at the same table, thinking collectively about how to best support our City's economic growth and development, and we can help local businesses thrive. My work as a legal aid attorney in Lawrence, Lowell, and Lynn focuses on supporting small businesses. I help new Americans set up businesses, navigate local ordinances, and review contracts and hiring laws. This gave me a unique perspective on the relationship between business and municipal government, and has given me a sense of best practices from other communities in our state. Cambridge is at a crossroads, a moment when our City is undergoing rapid changes and high turnover rates in both residential and commercial spaces. I am excited to be chairing this committee at a point in time where we have collected a lot of data, completed an extensive research process, and have concrete goals that came out of the study. The Retail Strategy Report came out in June 2017, almost a year ago. I look forward to hearing from the CDD how this first year has gone-- what goals we've addressed, and what goals we still need to tackle. I also look forward to hearing from our business associations, Cambridge Local First, and others, on what their goals and priorities are and where they intersect with the strategy report. In particular, I want to highlight vacant storefronts. While it is only 4%, empty storefronts stand out, and can make a neighborhood feel blighted and not valued by its residents. Having vibrant public spaces is essential for a thriving city, and I want to be sure all of our public-facing space is part of this. In that vein, I would like to discuss where we are on the conversation around a vacant storefront ordinance, as well as what avenues might exist for pop-up activation for start- ups, artists, and other community-minded projects.

Atachment B 3/28/2018 Retail Strategy for the City of Cambridge CAMBRIDGE COD 344 Outline OBJECTIVES CONSULTANT TIMELINE OVERALL STATE OF RETAIL CITYWIDE ANALYSIS GUIDING PRINCIPLES & RECOMENDATIONS 1. DRIVE EXPERIENCE 2. THRIVE ONLINE 3. HELP SMALL BUSINESSES REMAIN COMPETITIVE 4. IMPROVE ACCESS 5. SUPPORT AND BUILD CAPACITY OF LOCAL BUSINESS ASSOCIATIONS 6. FILL GAPS 7. ADDRESS REGULATORY BARRIERS 1

3/28/2018 Objectives Develop best practice policies and programs that will support and enhance the ground level active use and retail environment in Cambridge. PUBLIC POLICIES/INVESTMENTS: Short and long term strategies for how to meet City's unmet retail needs MARKETABILITY/VISIBILITY: Actions and best practices that the City might consider to enhance marketability and visibility to retailers TENANT MIX: Recommendations for appropriate retail mix for each commercial district ADMINISTRATIVE CAPACITY: Determine roles and responsibilities for advancing retail initiatives Consultant Timeline Site visit 1 LOA Kickoff Released RFP Contracted w/LOA Jan Feb Fall Dec 2016 2016 2017 2017 Site visit 2 Surveys, data collection Initial presentation Recommendations Mar Mar- May June May 2017 2017 2017 2017 2

3/28/2018 ROK K N. Overall State of Retail Changes in Consumer Habits Overall State of Retail Growth of e-commerce and online tools are leading consumers to merge online and offline into a single shopping experience. Most retail sales in the Online sales affect People are buying more online retail categories US are influenced by differently digital tools ° 0 78% of shoppers research Computer and Electronics E-Commerce in the US and apparel and online before heading to a eached nearly $39 accessories accounted for illion in 2016. Howeve store. At the same time, 45% of ecommerce sales. 72% of shoppers buy this only accounts for 11.7% of total retail digitally after seeing a sales. product in a store. 3

3/28/2018 Overall State of Retail Changes in Consumer Habits In Cambridge: A Cambridge business manager revealed that last year over 50% of his total sales were made online Residents who made a personal purchase online in the last 30 60% days • Cambridge Residents who have internet at home 92% Source: ESRI Business Analyst Ontine 2016 In an interview with a local business in Cambridge, the owner revealed having spikes in visitation and sales after posting new products on Instagram Changes in Consumer Habits Overall State of Retail • Online retailers are also opening bricks-and-mortar so they can fulfill Current no. of bricks - Online Retailer orders at different localities and -mortar locations Amazon • Retailers are using their stores as Warby Parker fulfillment centers 30 Bonobos • E.g. Target in Central Square features a separate entrance for online order pick ups order pickup • Larger retailers are right-sizing and occupying smaller footprints that can be accommodated in downtown retail spaces 4

3/28/2018 Changes in Consumer Habits Overall State of Retail The industry is facing fundamental and cross-generational shifts in consumer dining habits % of National Retail Sales Source: U.S. Census Bureau 18% (Core retail sales excl. motor vehicles and parts dealersi 16% 1 - 2010 15% 2012 14% - 2015 12% 10% 6% 4% 2% 0% Health and murmure and cac ronics Building Food and Miscellaneous Restaurants General lothing and Spoting goods Home materials, Beverage obby, book Merchandis Stores and appliance Personal Care Accessories SWIS garden Furnishings Stores stores and supplies Expenditure data shows that U.S. Restaurants make up 15% of all 8 in 10 consumers say dining retail sales. consumers have started out with family and friends Restaurant sales growth has spending more on dining in is a better use of their surpassed all other retail restaurants and meals outside leisure time than cooking and he home (+5%) than on buyin categories since the recession, cleaning up** groceries and eating in (0%) +19% between 2012 and 2015. Overall State of Retail Changes in Consumer Habits In Cambridge: Restaurants are the largest retail category citywide by number of businesses (38% of total retail businesses). Total sales from food services and drinking places in 2016 was $404, 153,691* with a $133 million surplus* confirming that Cambridge is already a dining destination. Restaurants are the main retail anchors in Inman and Kendall Squares and provide key complementing anchor functions in Harvard and Central Squares. *Source: ESRI Business Analyst Online 2016 5

3/28/2018 Changes in Consumer Habits Overall State of Retail Consumers are spending less on products and more on experiences and service- based retail US 2016 Census shows a decrease in total sales Experience-related purchase in the past year for retail categories including (travel, sports events, shows) were department stores (-5.6%), electronics and the top spending category for appliances (-3.2%), general merchandise (-1%) consumers in the 2016 holiday season.* and clothing & accessories. Number of Retail Stores Closing in Early 2017 1000 Payless 552 Bebe 170 • 138 American Apparel In early 2017, a large number : 118 CVS • 70 of retailers closed an 70 unprecedented number of 68 Macy's 60 stores throughout the Sears 42 country. Source: Business Insider Changes in Consumer Habits Overall State of Retail Traditional retailers are also adapting store formats to personalize services and offer hands-on, memorable experiences: for example Experience Retailer • Restaurants Home improvement • Cinemas DIY home décor classes stores • Theaters Electronics and Cooking classes, model • Personal services appliance stores kitchens • Health and fitness facilities Sporting goods stores Rock climbing walls, • Art studios, galleries and stores equipment testing, yoga classes Café, restaurants Social gatherings, outdoor dining" 6

3/28/2018 Changes in Consumer Habits Overall State of Retail Harvard Book Store In Cambridge: Overall net retail establishments declined by approximately 15% from 2001 to 2015. Electronics & Appliance stores and Sporting goods/hobby/book/music stores accounted for -70% of overall losses**. Meanwhile, sales have improved in experience-based categories such as food and beverage, personal services, and entertainment retail*. An increasing number of stores are offering Harvard Book Store holds between 350-450 more in-store events and a number of author readings annually to drive business to restaurants are seeking to expand and the store. enhance their dining experience by adding Meanwhile, Schoenhof's Foreign Books closed its rooftop dining. physical store and sells online. Summary Overall State of Retail = 3. 1. Growth of e-commerce and 2. The industry is facing Consumers are spending fundamental and cross- online tools are leading less on products and consumers to merge online generational shifts in more on experiences and and offline into a single service-based retail consumer dining habits shopping experience 7

3/28/2018 DATE RONE Citywide Analysis 1369 COPEHO Citywide Analysis Business Environment Retail Mix • Motor Vehicles, Parts Dealers & Gas Stations • Furniture and Home Furnishings • Building Material, Garden Equipment & Su • Electronics, Appliance & Telecommunications * Food & Beverage servicecant Drinkine Places Food Services and Drinking Health & Personal Care Miscellaneous Goods Dod & beverage Places 7% eat Persona cat 38% Vacant 4% #Sporting Goods, Art, Books, Music and Hobby • General Merchandise Percentage of Total Number of Businesses • Miscellaneous Goods • Used Merchandise • Food Services and Drinking Places is the vacant largest retail category followed by Health and Personal Care Stores. Note: Miscellaneous Goods refers to florists, office supplies, stationery and gift stores, • General Merchandise <1% used merchandise stores and others. Food & Beverage refers to grocery stores, specialty food stores and beer/wine/liquor stores. Source: City of Cambridge Business Data 8

3/28/2018 Citywide Analysis Retail Opportunity Top Leakage + Surplus Categories (residential) • General merchandise and grocers likely looking for opportunities. General Merchandise Stores • Surplus suggests Cambridge is already a $215,609,392 regional eating and drinking destination. Grocery Stores Building Materials, Garden Equipment & Supply 60,654,98 • Opportunities lie in creating urniture & Home Furnishin environments that support existing S28,903,437 retailers. Specialty Food Stores $10,171,370 Food Services & Drinking Places - $133,282,919 Clothing & Clothing Accessories - $52,060,166 Health & Personal Care Stores - $27,084,523 0 +553,750,000 -$215,000,000 -$53,750,000 -$107,500,000 +$107,500,000 +$215,000,000 Leakage Surplus Source: LOA; ESRI Business Analyst Online Citywide Analysis Business Environment Cost of Doing Business According to the 2017 Citywide Business Survey and focus groups, there has been an increase in cost of operating businesses, including rents, utilities, and property taxes. According to the survey respondents, the top 3 challenges to the profitability of their businesses are: Increase in rent 2. Increase in cost of utilities 3. Increase in cost of real estate taxes This is compounded by the fact that many retail properties in Cambridge have Triple Net Leases. + $ Triple Net Leases require tenants to pay all insurance, maintenance, and taxes. The 2017 Citywide Business Survey was made available online for 6 weeks and 68 small business owners responded. Find the full survey results online: http://www.cambridgema.gov/CDD/Projects/EconDev/-/media/BOF690EA260F45449CC8E5F3C4B9FDD7.ashx 9

3/28/2018 Citywide Analysis Business Environment Despite increasing real estate costs, Real Estate Landscape average asking rents are comparable or less than nearby competitive districts. Davis Square Fresh Pond/Alewife Average asking rent: Average asking rent*: $46/SF City of $30 - $60/SF Cambridge Average asking rent Huron Village/ Northy open an are sing rene: $32/SF $43 per SF (excl. utilities Observatory Hill Assembly Row Porter Square +property taxes) Average asking rent: Average asking rent: Average asking rent: $50/SF $28/SF $43/SF Median asking rent $31 Inman Square per SF Average asking rent: Range of spaces $26/SF Harvard Square 500 - 6,300 available SF East Cambridge Average asking rent: $106/SF Average asking rent: Average space size Central Square 2,549 SF $26/SF Average asking rent: Median space size Kendall Square $42/SF 1,800 SF Average asking rent: $35/SF Source: Costar and LoopNet February and March 2017; *HR&A 2016 Market Business Environment Citywide Analysis Real Estate Landscape Asking Rent Retail for Lease Cambrige, MA (S/SF/ear) - State $15.77 -28% + 2% $35.00- - Metro $17.19 2.0-4.5% -0.59-9.3% - County 519.45 $30.00- - City $33.84 0.0% 90% $25.00- The average asking rental rate per SF for Retail Commercial properties as of June 2016 $20.00- was $33.84. Rental rates remained unchanged $15.00- compared to the prior 3 2016 2015 2014 -Metro months, with no change year- Cambridge City Suffolk County on-year. - State - Middlesex County Source: LoopNet 2017 10

3/28/2018 Citywide Analysis Structural Challenges Parking requirements Zoning and Table of Permitting process ignore impacts of is onerous Uses do not reflect new business weather, special needs groups, and dynamics business needs Walking and biking is less Special permit requirement/ Described by many variances for "fast food" conducive to extreme weather business owners as long establishments is a hurdle to conditions and to the needs of and uncertain. entry for new local businesse seniors and people with (food to go options) and other disabilities. Parking requirements disregards the regulations constrain experience-based retail. needs of employees who do not live in transit accessible places. Citywide Analysis Administrative Capacity ambridge has a large number of neighborhood and business associations tha eliver key services to businesses and commercial districts and provide key link between the City and businesses. Economic Development City Division of Department of Community Development connects businesses to resources but has Business limitations on what they Association can do and provide AS directly to businesses due to Massachusetts State laws. However, there is a vast disparity amongst the associations in terms of budget and operating capacity which leads to imbalance support and services for businesses of various districts. Budget Range Staff Size Range 0 - 3.5 full-time Less than $2k to $600k 11

3/28/2018 Guiding Principles 1. DRIVE EXPERIENCE 2. THRIVE ONLINE 3. HELP SMALL BUSINESSES REMAIN COMPETITIVE 4. IMPROVE ACCESS 5. SUPPORT AND BUILD CAPACITY OF LOCAL BUSINESS ASSOCIATIONS 6. FILL GAPS 7. ADDRESS REGULATORY BARRIERS Drive experience 12

3/28/2018 1 Recommendation: Build experience of the diverse districts through necessary public improvements and local activities STRATEGY * Assess physical conditions of the city's commercial districts mpleton and promote necessary public improvements DOWNTOWN STATEN ISLAND ACTION - Creating district needs assessment for at least one commercial district per year. FY2018 - Central Square. 1 Recommendation: Encourage district- wide events + activities STRATEGY - Encourage stewardship and revenue generation through the activation of public spaces - Consider providing competitive funding for events & programming held by local business organizations ACTION > Small Business Challenge ("Challenge") program is designed to foster neighborhood engagement with the local business community and to support small business. associations and groups of neighborhood businesses. 13

3/28/2018 REAL PEOPLE. yelp REAL REVIEWS *... " PEOPLI Thrive Online 2 2 Recommendation: Develop a city-wide effort to establish online marketing presence STRATEGY • Offer technical assistance and training to business associations and businesses on how to have a presence on review platforms PEOPLE ACTION LOVE US ON - Continue the Small Business Enhancement Program, and offer workshops on creating/developing online presence for businesses. Currently developing interpreter services and translating our Steps to Starting a Business Guide. yelp www.yo?g.cm 14

3/28/2018 PURIT P& remain competifive 3 remain companies 3 Recommendation: Enhance business storefronts STRATEGY - Continue Storefront Improvement Program and determine if additional funding will enable allow for GHTER BREWING greater use ACTION - Storefront Improvement Program is a successful business assistance grant program that leverages public- private investment. - Using some CDBG funds to offer legal assistance for Lamplighter is a recipient of Cambridge Storefront commercial lease review. Improvement Grant 15

3/28/2018 3 Recommendation: Offer other support for small businesses STRATEGY - Provide additional support for small businesses. ACTIONS - Educate business owners about shift-sharing platforms and tools to coordinate business activity (e.g. business hours, programming, employees roles and availability) - Dozens of business improvement workshops - some moving to web-based - Grant programs- Small Business Enhancement, Small Business Challenge, Interior Accessibility, Storefront Improvement Program. - Other programs: Cambridge Entrepreneurship Assistance Program; Small Business Coaching SILT/4 9008-4080 Program, and 10-week Cambridge Business Planning Improve access 4 KENDAL INBOUND 16

3/28/2018 4 Recommendation: Mitigate impacts of construction projects on small businesses STRATEGY - Continue supporting wayfinding and promotion strategy for businesses in affected areas > Assist businesses in procuring additional signage - District-wide promotion and marketing during construction periods ACTION DISCOVER - Placing Banners in impacted neighborhoods - Coordinating with DPW on future construction impacts starting Spring 2018 (Observatoryhill local business associations 5 beating en canchy of 17

3/28/2018 5 Recommendation: Strengthen the role of local business associations in managing and promoting their commercial districts ACTION • Support efforts of local business association(s) in Business Improvement District Formation - Researching variety of training opportunities for business association leadership WHAT ARE THE BENEFITS OF A DISTRICT MANAGEMENT ORG? A 10-year Philadelphia study found a demonstrable correlation between the presence of a district management organization with sustainable funding and retail sales growth over time. POPUP FLEA Fill Gaps 18

3/28/2018 Recommendation: Encourage short term/ pop-up uses STRATEGY - Activate and add amenities to public spaces, expand entrepreneurial opportunities and provide diverse food options ACTION • Launched Cambridge New Food Truck Pilot Program - Researching Vacant Storefronts Pilot Address regulatory barriers 19

3/28/2018 7 Recommendation: Adapt commercial land use classification to allow for flexible retail formats ACTION - Adopt recommendations from the 2015 Commercial Land Use Classification study for retail HOW IS THE CURRENT TABLE HURTING SMALL BUSINESSES? ZINNEKEN'S BELGIAN WAFFLES LAMPLIGHTER BREWING CO. PRACTICE SPACE HONEYCOMB CREAMERY LAMPLIGHTER BREWING CAL Classes triggered higher Change of Use triggered a Classified as fast food; No classification; parking requirements variance or special permit required a variance Educational Institution) required variance Administrative Capacity Roles & Responsibilities City of Cambridge Business Association Business District-level/Outside the Store Inside the Store Citywide Operations Regulatory/Zoning * Promotion/Marketing * Clean/safe Merchandise * Placemaking * Public realm • Technical Assistance Customer Service improvement Marketing Outreach/Advocacy Technical Assistance Education 20

3/28/2018 Thank you! www.cambridgema.gov/CDD/Projects/ EconDev/ retailstrategicplan APPENDIX 21

3/28/2018 District-Level Analysis District Categories Regional/ Specialty Commercial District • High worker to resident ratio • Higher number of businesses/retail offerings Neighborhood/ Community Commercial District • Serving mostly local residents • Lower number of businesses/retail offerings 22

3/28/2018 North/Upper Mass Fresh Neighborhood/ Community District Categories Pond/Alewife Regional/ Specialty Porter Sq Visitors Neighborhood/ Community Workers # Residents aKesdente Inman Sq • Visitors Regional Dining Destination STudenTs •Workers I Residents •Workers Students Huron Village/ WOLKETS Observatory Hill East Cambridge Neighborhood/ Community Neighborhood/ Community -KES OCTS Harvard Sq. Regional/ Specialty Workers • Residents Students Central Sq visitors i Workers Regional/ Specialty Kendall Sq • Residents Regional/ Specialty Students •Residents • Workers •Workers Regional/ Specialty Inman Fresh Pond/ Harvard Central Kendall Square Square Square Square Alewife No of businesses 69 119 46 65 210 Total Population* 24,788 6,495 21,244 7,018 16,165 Population Density (per sq mile) 8,222 12,017 31,377 26,891 20,462 Total No. of Workers 5,779 10,291 36,303 23,379 11,277 Worker-Resident Ratio 2:1 5:1 0.5:1 1:1 1.4:1 MHI S43,951 $73,057 $62,118 $75, 162 $65,380 Grocery General Merchandise En Building/ Garden Materiats Leakage Clothing &t Accessories Furniture & Home Furnishings 41,916 212,853 1,546 13,428 Upcoming retail SF Surplus Leakage Surplus Leakage Surplus Surplus/Leakage 23

3/28/2018 Neighborhood/ Community North/ Upper Huron Village/ Porter Square East Cambridge Mass Observatory Hill (Cambridge St) No of businesses 55 (excl/ 39 52 33 Galleria) Total Population 11,989 16,887 13,235 12,528 Population Density (per sq 15,858 16,753 21,376 mile) 15,176 Total No. of Workers 16,992 4,832 1,329 4,612 Worker to Resident Ratio 0.3:1 1.5:1 0.3:1 0.1:1 MHI $79,381 $101,017 $85,990 $67,931 Grocery General merchandise Building/ Garden Materials Categories Top Leakage Clothing &t Accessories Food/ Drinking Places 480 9,293 36,440 Upcoming retail SF Harvard Square: 24

3/28/2018 Harvard Square Anchors Harvard Square is a young and vibrant 98 Institution (Public/ Private) district anchored by many cultural and Walk Sports/ Entertainment educational institutions. score Retail / Restaurant Harvard Harvard Square Open Space Hotel Cambridge & University 98 Common ParC Total Population Bike The Plaza American 16,165 score heater Harvard Art Population Museums 20,462/ sq Club Pasin Density mile 81 Median Transit •Mass. Ave Comedy Ballet Theater score Household Total No. of $65,380 Plaza/ Ice Income Skating Businesses: i ME ALBUM SE Rink OBERON 23,199 Total No. of 210 Transit 23,379 Workers Riders Worker to 1.4:1 Resident Ratio Health and Clothing Drinking Places ACCeSSORH. Personal Care Customers + Retail Leakage • Residents * Students Top 3 Leakage Categories Tapestry Segmentation • Visitors Source: LOA; ESRI Business Analyst Online Source: LOA; ESRI Business Analyst Online •Workers Traditional Contemporary Hip/ Trendy Grocery Stores $38,080,168 Laptops + General Merchandise Stores Workers Lattes | $26,360,305 Building Materials, Garden Equipment & $90,000 Supply Metro Renters $5,691,050 Trendsetters There is an overall surplus of $40 million in Haryard Square. $45,000 Dorms to Customers noted a preference for independent and Diplomas/ affordable businesses. In addition to these retail categories, they would also like to see more restaurants, entertainment Students venues and specialty retail. Successful retailers will offer products that are contemporary, hip and trendy in the low to moderate price points. 25

3/28/2018 369 COFFEE HOUSE Central Square Central Square Central Square is a popular dining. Anchors 97 Ensuitution (Public/ Private entertainment and shopping Walk Sports/ Entertainment destination for local residents, workers score Retail / Restaurant cantural and visitors. Hotel Central Sq 99 Total Population Bike 24,788 score YMCA • Population 31,377/ sq *. Massachusetts Ave Density mile 72 H Marte Paul Church That Transit Median Night Club score Main st Household $73,057 Total No. of Income MIT Businesses: Museum 16,525 Total No. of Transit 11,277 119 Workers MIT Riders Worker to 2:1 Resident Ratio Health and Food Services Personal Care and Drinking 26

3/28/2018 Customers + Retail Leakage • Residents Students Tapestry Segmentation Visitors Top 5 Leakage Categories Source: LOA; ESRI Business Analyst Online Source: LOA; ESRI Business Analyst Online Warkers Hip/ Trendy Traditional Contemporary General Merchandise Stores Laptops + $70,052,895 Lattes Clothing & Accessories $32,617,674 Workers $90,000 Building Materials, Garden Equipment & Supply Metro Renters $17,708,692 Trendsetters Sporting Goods, Hobby, Book & Music $11,981,317 $45,000 City Strivers Health and Personal Care Students $10,432,469 Intercept surveys correspond with leakage data. Customers said they would like to see more independent Successful retailers will offer products that boutiques, apparel stores, art spaces and book stores. are moderately-priced but hip and trendy. L HECTE Kendall Square 27

3/28/2018 Kendall Square is a rapidly developing Kendall Square district with a large daytime worker population. The tech employment Anchors 88 nauto Landmark center is currently well-served by Walk Sorts! Enterta „Cinema restaurants and drinking places. Score Retail / Restaurant Cultural One Kendall Open Space Kendall Sq *Square Office Total Population Plazä7 toc 7,018 Skating говоркак Broad A Population Coladen Broad 12,017/ sq Density mile Kocha Microsoft Main St. Median Household $62,118 Income Total No. of Businesses: Total No. of 65 36,303 Workers Worker to 5:1 Resident Ratio Food Seroices Fitress/ Gym and Drinking 72% Customers + Retail Leakage Residents Students Tapestry Segmentation Visitors Top 4 Leakage Categories Source: LOA; ESRI Business Analyst Online Workers Source: LOA; ESRI Business Analyst Online Traditional Contemporary Hip/ Trendy Grocery Stores Laptops + $19,215,854 Lattes General Merchandise Stores Workers $12,631,206 $90,000 Furniture & Home Furnishings Metro Renters $2,081,962 Trendsetters Office Supplies, Stationery & Gifts $45,000 $1,528,566 City Strivers There is an overall surplus of $164 million in Kendall College Town/ Square. Students Intercept surveys correspond with leakage data. Customers Successful retailers will offer products that said they would like to see more grocery stores, are more contemporary but range from low to convenience stores, and specialty food stores. However, high price points. customers also wanted more restaurants and bars, book stores and sporting goods. 28

3/28/2018 TRAPH: de Fresh Pond/ Alewife Fresh Pond/ Alewife is a car- centered Fresh Pond/ Alewife shopping district. It has convenience Anchors 78 retail offerings at low prices to meet /Sports/ Entertai Walk • the needs of the lower income Retail / Restaura score Open Space immigrant community. CULUTSI Fresh Pond/ 93 Alewife Apple Bike Total Population Trader 6,495 Joe's Danehy Population Alewife Brook Pkwy Fresh Pond 8,222/ sq mile Fields Density COncORiAA 64 Transit Fresh Pond Median score Park Household $43,951 Income Total No. of Total No. of Businesses: Transi 5,779 Workers 46 Rider Worker to 1:1 Resident Ratio Food Services and Dricking Places 29

3/28/2018 Customers + Retail Leakage * Visitors Tapestry Segmentation Top 3 Leakage Categories Workers Source: LOA; ESRi Business Analyst Online Source: LOA; ESRI Business Analyst Online Traditional Contemporary Hip/ Trendy General Merchandise Stores Laptops + $6,673,769 Lattes Workers Clothing & Accessones $90,000 S6.451.875 Used Merchandise Stores $245,051 International Trendsetters Marketplace $45,000 There is an overall surplus of $50 million in Fresh Pond. Customers needs are being met in most categories but those interviewed would like to see more food and drinking places including cafes and bakeries, and fooc Successful retailers will provide contemporary trucks for workers. offerings that are in the low moderate price points. BAR EAST East Cambridge/ North Point 30

3/28/2018 East Cambridge/ North Point Anchors East Cambridge is a culturally diverse 93 and walkable district with regional Retail / Restaurant Walk camonoge Highway retail offerings. score Open Space East Cambridge 88 Total Population Cambridge St Bike Multicultural 11,989 Arts Center score North Point Park Population 15,176/ sq Density mile Cambridge 83 Museum of Galleria • Transit Median Science Charles St. IBM. Innovation/ score Household Center $67,931 Income Total No. of 6,421 Total No. of Binney St Businesses: 16,992 Transit Workers Riders 55 Worker to 1½:1 Resident Ratio food and Food Services and Health and UNDERSCHS Personal Care everage Customers + Retail Leakage • Residents Top 5 Leakage Categories Tapestry Segmentation • Visitors Source: LOA; ESRI Business Analyst Online Source: LOA; ESRI Business Analyst Online Workers Grocery Stores Traditional Contemporary Hip/ Trendy $16,759,933 Laptops + Miscellaneous Stores Lattes $5,617,830 Workers Furniture & Home Furnishings $90,000 $4,113,455 Metro Renters Office Supplies, Stationery & Gifts $2,887,486 Trendsetters Sporting Goods, Hobby, Books & Music $2, 120,867 $45,000 Social There is an overall surplus of $289 million in East Security Set Cambridge. Successful retailers will offer products that Intercept surveys suggest that customers would like to see are contemporary, hip and trendy in the more restaurants and bars, coffee shops and bakeries, and moderate price points. hobby stores. Aligned with leakage data, they would also like more fresh produce options. 31

3/28/2018 rter square ower Mass Ave. Porter Square/ Lower Mass. Ave. Porter Square is a wealthy and dense Anchors 94 residential neighborhood that is easily # Institution (Public/ Private) North Walk accessible and has a variety of food and Sports/ Entertainment Cambridge SCOrE drinking places. Cultural Senior Hotel Porter Square Center its Ave- A Office 78 Total Population Bike Porter Sq 16,887 Shopping score Walden Center Population 21,376/ sq Richdale Ave Density mile 73 Transit Median Lunder Arts score Household $85,990 Center Income Total No. of 8,850 Total No. of Transit Businesses: 4,832 Workers Riders 39 DONE GOOdS Resident to 3:1 Health and nobey: sook, and * Worker Ratio Drinking Places Personal Care Mirsic Stores Store Retailers 10% 32

3/28/2018 Customers + Retail Leakage # Residents • Students Tapestry Segmentation Top 5 Leakage Categories • Visitors Source: LOA; ESRI Business Analyst Online Source: LOA; ESRI Business Analyst Online • Workers General Merchandise Store: Traditional Contemporary Hip/ Trendy $62.923.058 Laptops + Lattes Grocery Stores $29,667,671 Clothing & Clothing Accessories $90,000 S28,806,712 Workers Building Materials, Garden Equipment & Metro Renters Supply $17,742,646 $45,000 Furniture & Home Furnishings Trendsetters $10,626,059 Students In addition to these retail categories, customers would like to see more local businesses. They also noted the Successful retailers will offer products that are contemporary, hip and trendy in the need for stationery stores and quick, affordable dining moderate to high price points. options, including cafes and bakeries. HARAKARE Inman Square 33

3/28/2018 Inman Square Inman Square is a convenience- Anchors 93 oriented shopping district serving • Institution (Pubila/ Private) Walk large residential market with moderate Sports/ Entertainmet score Retail / Restaurant to high incomes. Inman Square 88 Total Population Bike Beacon St Spaulding 21,244 Whole score Hospital ambridge Foods Hospital Population Gather Here 26,891/ sq Cambridge St Density mile 70 Transit Median score Household $75,162 Income Inman Sta Of 4,236 Hampshire St Total No. of Transit Businesses 10,291 Workers Riders Resident to 69 2:1 Worker Ratio Heal hand Food Services: Deverege Personal Care and Drinking 22% 42% Customers + Retail Leakage • Residents «Students Tapestry Segmentation Top 5 Leakage Categories Source: LOA; ESRI Business Analyst Online 13 Workers Source: LOA; ESRI Business Analyst Online Hip/ Trendy Traditional Contemporary General Merchandise Stori Laptops + $40,924,896 Lattes Clothing & Accessorie: $30,165,299 $90,000 Health & Personal Care $16,936,504 Metro Renters Building Materials & Garden Equipment: Workers $16,910,014 Food Services & Drinking Places $13,460,880 Trendsetters $45,000 Social In addition to these retail categories, customers would Security Set like more affordable grocery and specialty retail stores. The hip and trendy customer base would also enjoy Successful retailers will offer a range of special events organized in the district. traditional to trendy products that are in the low to moderate price points. 34

3/28/2018 HAIR CO & North/ Upper Mass. Ave. Photo: LOA North/ Upper Mass. Ave. North/ Upper Mass is a fast-developing Homewood Suites by Hilton residential neighborhood with a 91 Walk moderate to high income customer Total No. of score base. Businesses: North/ Upper 52 Massachusetts 83 Bike Total Population score Harvey St 13,235 Population 16,753/ sq -Massachusetts Ave 70 Density mile Transit Median score Household Rindge Ave $79,381 Income No distinct anchors Total No. of in the district 4,612 Workers Resident to Food and Health and 3:1 and Drinking Urnistin Personal Care Beverage: Worker Ratio Places 23% 35

3/28/2018 Customers + Retail Leakage Residents Students Tapestry Segmentation Top 6 Leakage Categories Visitors Source: LOA; ESRI Business Analyst Online Source: LOA; ESRI Business Analyst Online workers Grocery Stores Hip/ Trendy Traditional Contemporary $44,244,849 General Merchandise Stores Laptops + $41,600,267 Lattes Clothing & Accessories $21,559,812 $90,000 Health & Personal Care $11,690,685 Workers Building Materials & Garden Equipment Metro Renters $11,232,585 Sporting Goods, Hobby, Book & Music $45,000 $10,938,859 Trendsetters International North/ Upper Mass still has the opportunity to build its Marketplace offerings in categories such as grocery stores, building materials & garden equipment, and hobby stores in the moderate to high price range. Blue Hills Bank 1 Huron Village/ Observatory Hill 36

3/28/2018 Huron Village/ Observatory Hill Anchors Huron Village is a very wealthy, 80 Insitution (Public/ Private s residential neighborhood with a home Walk Retail Y Restaurant cutural furniture retail niche. score A Office Huron Village/ 93 Observatory Hill Bike Cambridge score Library Total Population Botanic Gardens 12,528 Hi Rise Bread Co. Population Center for 15,858/ sq 64 Huron Ave Density mile Astrophysics Transit score Median Household $101,017 Total No. Garden: Income of Businesses: Total No. of 1,329 Workers 33 Food Services Resident to Miscellaneous 10:1 and Drinking Heath and Furnishings Worker Ratio Places Store Persunal Care STORES 18% Customers + Retail Leakage • Residents STUDeNTS Tapestry Segmentation Top 6 Leakage Categories Source: LOA; ESRI Business Analyst Online Source: LOA; ESRI Business Analyst Online •Workers Grocery St Traditional Contemporary Hip/ Trendy $63,019,321 General Merchandise Stores Laptops + Lattes Food Services & Drinking Places Workers 590,000 Clothing & Accessories $25,070,664 Metro Renters Health & Personal Care S20,361,674 Trendsetters Building Materials & Garden $45,000 Equipment City Strivers $15,352,501 Students Huron Village has the highest leakage of $358 million in the city of Cambridge. However, there are no available Successful retailers will provide contemporary retail spaces for lease in the area. and trendy offerings that are moderately priced. 37

Attachment C Action Plan - Roles and Responsibilities A thriving retail landscape requires Business City of Cambridge Business Asgociation engagement and commitment from Inside the store District-Level stakeholders at multiple city and City-Wide community levels. The following table Public realm assessment X- (Provide) presents a framework for assigning X - (Promote) roles and responsibilities connected to Public realm physical Improvements X- (Provide) the recommendations presented in this X - (Promote) Marketing & Promotion X - (Provide) study. Events 2 Thrive X (Promote+ Provide) X (Expand provision) Online marketing TA Online sales TA X (Expand provision) 3. Help Smal Be Tax exemptions Fee waivers Storefront improvements X - (Expand X - (Promote) geographic coverage) X - (Promote) Legal support X - (Provide) Labor support X - (Promote) X - (Provide) Ahapte X (Continue provision) X- (Promote) Mitigate construction impact Assess transportation needs X - (Provide) Assess labor transport needs X - (Provide) CBD Formation X - (Promote) X - (Provide) X - (Provide) Additional TA + Financial Tool X - (Provide) New food truck program X - (Approve/ Provide) X - (Promote) X - (Promote) Pop-up activation of empty storefronts X - (Promote) X - (Provide) Business relocation grant Adopt recommendations from 2015 Com- X - (Promote) X - (Provide) mercial Land Use Classification Study Revise fast food order cap definition and X - (Provide) X - (Promote) classification for small batch manufactur- ing 50 Note. 'Provide' - lead role: 'Promote' - supporting role

Atlachment D City of Cambridge 0-6 Amended Order IN CITY COUNCIL April 2, 2018 COUNCILLOR SIDDIQUI VICE MAYOR DEVEREUX COUNCILLOR MALLON MAYOR MCGOVERN WHEREAS: Vacant or unoccupied first floor retail is detrimental to the City's goals of supporting thriving retail districts and visibly inhibits the feeling of an activated streetscape; and WHEREAS: Storefronts left in disarray have a negative impact on the neighborhood, other businesses in the area, and on the sidewalk/public space in front of the vacant or unoccupied property; and WHEREAS: Various business associations and members of the Economic Development and University Relations Committee are in agreement that addressing the outward therefore be it ORDERED: That the City Manager be and hereby is requested to consult with the Law Department, Community Development Department and any other appropriate City departments regarding the feasibility of requiring property owners to give the City written notice When a storefront becomes vacant, including plans for finding a new tenant and keeping the premises tidy and in compliance with all applicable codes to mitigate any negative effects or safety concerns on the neighborhood; and be it further

ORDERED: That the City Manager be and hereby is requested to report back to the Economic Development and University Relations Committee in a timely manner in June with recommendations. In City Council April 2, 2018. Adopted as amended by a yea and nay vote:- Yeas 8; Nays 1; Absent O. Attest:- Donna P. Lopez, City Clerk A true copy; ATTEST:- Danna P. Kape Donna P. Lopez, City Clerk