A communication transmitted from Louis A. DePasquale, City Manager, relative to an agreement with the Cambridge Housing Authority to take an easement and accepting the conveyance of a 2nd easement for the purpose of constructing a multi-use path along the Grand Junction Railway and to provide grant funding to assist in closing the funding gap for the Millers River Redevelopment Project by paying for part of the demolition of the community center building, reconstruction of a new community building, renovation of 15 housing units and the creation of permanent affordability restrictions for these units

Cambridge Housing Authority 362 Green Street, Cambridge, MA 02139 | P: [phone removed] F: [phone removed] | www.cambridge-housing.org December 3, 2018 Louis A. DePasquale City Manager City Hall 795 Massachusetts Avenue Cambridge, MA 02139 Re: Millers River Project Dear Mr. DePasquale: We are writing on behalf of the Cambridge Housing Authority and its affiliated entities Millers River Holding LLC and Millers River LLC (collectively the "CHA") relative to the redevelopment (the "Project") of the Millers River Apartments at 15 Lambert Street in Cambridge, MA (the "Property" or "Millers River"), We and the members of the Board of the CHA are very pleased that the City and the CHA have been able to reach an agreement pursuant to which the City will provide a total of $5,000,000 to the CHA, to 1) enable to the CHA to close the funding gap that currently would prevent the CHA from building out the Project as planned, and 2) to allow the City to acquire two ten-foot wide easements totaling 4,820 square feet on the Millers River parcel adjacent to the Grand Junction Railway Line (the "Easements") in order to construct and maintain a public multi-use path (the "Multi-Use Path ). The CHA and the City have been working very closely for the past six months to explore ways in which the CHA could raise the necessary funding for the CHA's Project, which as planned will include the demolition and replacement of the building which houses the community room, which is important to Millers River residents. At the same time, the City has requested that the CHA convey the Easements to the City in order to provide a key element of the planned construction of the Multi-Use Path. The CHA is aware that the City and its residents are committed to building additional facilities for pedestrians and bicyclists and to provide alternative transportation modes for its residents which the development of the Multi-Use Path would greatly assist. The City and the CHA have worked col labor ati vely to develop a plan at the Miller's River Apartments site that would allow us to achieve both of these important community goals. By this letter, the CHA confirms that it will accept the pro tanto damage award in the amount of One Million Four Hundred Twenty-Four Thousand Three Hundred Fifty Dollars and Seventy Cents ($1,424,350.70) (the "Damage Award") from the City of Cambridge (the "City") for the taking by eminent domain by the City of an easement of approximately 4,600 square feet ("Easement A") and that it will convey an easement of approximately 220 square feet for no compensation ("Easement B"), both of which constitute portions of the Millers River parcel of

land adjacent to the Grand Junction Railway, which will be used by the City in conjunction with the City's development of the Multi-Use Path. In connection with this taking, the CHA (including its above referenced affiliated entities) will not seek additional monetary damages related to this taking of Easement A and will seek absolutely no compensation whatsoever for the conveyance of Easement B. Please find attached a release signed by the CHA to that effect, as well as a letter confirming that the CHA will waive the statutory requirement that the City obtain and file an appraisal for the value of Easement A prior to the taking of Easement A by eminent domain. By this letter, the CHA confirms our agreement with the City that the Taking Order to be issued by the City Council shall provide that the City shall not exercise any of the rights set forth in the taking order relating to the installation the Multi-Use Path or the use of the Multi-Use Path area prior to either the satisfaction of the following conditions: (i) Demolition by the CHA of the existing community building facing Cambridge Street; (ii) Completion by the CHA of the construction of the new community center to be located adjacent to the Multi-Use Path Area; (iii) Completion by the CHA of the rehabilitation of the existing apartment tower building known as "Millers River Apartments" and shown on the Site Plan; and (iv) Amendment of the Project's Comprehensive Permit (Case No. BZA- 016906-2018) from the City of Cambridge Board of Zoning Appeals for parking due to a loss of parking spaces for the Property in the parking lot located adjacent to the Multi-Use Path. or until Five Years from the date of the issuance by the City Council of the Taking Order, whichever comes first. In addition to agreeing to the City's payment of the pro tanto damage award to the CHA for the acquisition of Easement A and agreement not to seek any additional damages for the taking of Easement A or to seek any compensation for the conveyance of Easement B, we would like to convey the CHA's deep appreciation for the City's agreeing to provide grant funds to the CHA in the amount of Three Million, Five Hundred Seventy-Five Thousand Six Hundred Forty- Nine Dollars and Thirty Cents ($3,575,649.30) to assist in the funding of the Miller River redevelopment project (the "Grant Funds"). By this letter, the CHA confirms that such Grant Funds shall be used exclusively for the purpose of facilitating the development and rehabilitation of the affordable housing units at Millers River, specifically, for the demolition of the building that currently houses the community room and the construction of fifteen units at Millers River that will be permanently maintained as affordable housing units. The CHA recognizes that the provision of these Grant Funds is a unique circumstance which is a result of the City's strong desire to support the provision of housing for low-income

families in Cambridge as well as supporting the City's goal of providing for the development of the public, multi-use path adjacent to the Grand Junction Railway. Thank you. Very truly yours, Michael Johi^ton Executive Director Cambridge Housing Authority Margaret Ddnnelly Moran ^ On Behalf of Millers River Holding LLC M^vz—-^