a report from Councillor Sumbul Siddiqui, Chair of the Economic Development and University Relations Committee, for a public hearing held on February 13, 2019 to receive an update on the progress to date on the retail strategy plan and vacant storefront initiative

Attachment A Crane, Paula From: Siddiqui, Sumbul Sent: Wednesday, February 13, 2019 12:08 PM To: Crane, Paula Statement from today's hearing Subject: Hello everyone, A quorum being present, I will call this meeting to order. The call is as follows: This hearing will be audio and video recorded. We last met on this particular topic in September. Since then we have heard from the department on several matters such as: 1) updates to the vacant storefront initiative webpage 2) storefront activation resources 3) district assessments to highlight opportunities in the city's commercial areas 4) the vacant storefront creative design contest It is clear that we are implementing key parts of the retail strategy plan. At the same time, many of us have been itching to put into place recommendations from the commercial land use classification study that was completed in July 2015, almost four years ago. We have a fast changing business climate and I hope today's discussion can be fruitful and we can walk out with a timeline for what has to happen to move the salient parts of the study recommendations forward. I look forward to hearing about the outreach to business associations, online survey to businesses, and research. We will start with introductions and then move to CDD's presentation and open it up for discussion. Councillor Sumbul Siddiqui Cambridge City Council Office: [phone removed] Cambridge City Hall 795 Massachusetts Ave Cambridge, MA 02139 Sign up for my newsletter here.

Attachment B ONOMIC DEVELOPMENT & UNIVERSITY RELATIONS COMMITTEE COMMITTEE MEETINGS ~ AGENDA ~ Wednesday, February 13, 2019 12:00 PM Sullivan Chamber 12:00 Opening remarks and introductions (Councillor Siddiqui) 12:05 Update on Retail Strategy Plan Implementation (Lisa Hemmerle, Director of Economic Development) - Land Use Classification Study 12:30 Discussion 12:50 Vacant Storefront Initiative updates 1:10 Public Comment 1:20 Further Discussion Final Remarks (Councillor Siddiqui) Page 1 City of Cambridge

Attachment C2122019 City of Cambridge Community Development Department Retail Land Use Initiative Update February 2019 Project Background • CDD engaged with planning consulting firm Community Opportunity Group, Inc. to develop the Commercial Land Use Classification Study, providing recommendations to the City on ways to update, consolidate, and clarify commercial classifications in the Zoning Ordinance • City's Retail Strategic Plan consultant recommended that the City incorporate recommendations from the Classification Study to allow for more flexible and new retail uses February, 2019 City of Cambridge - Community Development Department 1

2 City of Cambridge - Community Development Department 4 February, 2019 about regulatory barriers • Address the Retail Strategic Plan and other small business feedback • Boost local entrepreneurship • Support local retail and identity changing the face of commercial areas • Encourage new experiential retail and productions spaces that are consume goods and services • Opportunity to adapt to changes in the way we work, shop, and Why Now? City of Cambridge - Community Development Department 3 February, 2019 • New retail spaces are coming online • Urban and makerspace manufacturing is growing • People look for items that are locally made/artisanal products • Growth in small retail has increased • Retail and manufacturing/makerspace (e.g. microbrewery and taproom) • Retail and food uses (e.g. café and clothing) • Retail and classroom (e.g. retail and community classes) • Retailers are combining uses Current Trends 2/12/2019

.2/12/2019 Recent Efforts • Outreach to business associations • Harvard Square Business Association • East Cambridge Business Association • Cambridge Local First • Online survey to businesses • Research • BZA cases involving retail or small business City of Cambridge - Community Development Department 5 February, 2019 Specific Issues Heard • Use table complicated to read - too many footnotes, too many categories, definitions not up-to-date • Food entrepreneurs face difficulties - e.g., commercial kitchens, fast order food requirements • Too much time to resolve zoning issues and obtain variances, costly for small businesses having to carry rent • Parking requirements • Non-conforming uses • Allowing mixed uses in one space, different revenue streams • Neighborhood objections about noise, traffic, parking Lity or cambrage - community Development Department February, 2019 6 3

4 Zoning Recommendations Retail Land Use Initiative February, 2019 City of Cambridge - Community Development Department • Average time of SP/Variance legal process (per statute): 3-6 months • Average legal costs for SP/Variances: $3,000 Time and Costs: • Current uses are not clearly defined • Variances for non-defined uses or mixed of uses • Fast Order Food Permits • Parking Waivers (SP and Variances) Most Common BZA requests: Impact on Business 2/12/2019

2/12/2019 Zoning Recommendations Overview 1. Consistently define all retail use types 2. Add use types that are not listed 3. Regulate "hybrid" activities 4. Plan for unforeseen use types 5. Consider relaxing some requirements (parking, change of use, &c.) City of Cambridge - Community Development Department February, 2019 1. Consistently define all retail use types Recommended Changes Current Zoning Create consistent definitions for Not all uses are defined, but many use listings require tracking through each use, consolidate footnotes into many footnotes definitions where possible 10 City of Cambridge - Community Development Department February, 2019 5

6 February, 2019 City of Cambridge - Community Development Department 12 establishments food service/production retail/production establishments and Establish new use types for offered along with retail sales) type (e.g., instruction or services different types of retail activities business establishment combines allowed activities for a given retail No specific guidance when a In definitions, clarify the range of current Zoning ecommended Changes 3. Regulate "hybrid" activities February, 2019 City of Cambridge - Community Development Department 11 Temporary open-air market Outdoor recreation facility Fitness center Performing arts studio common Food stand or kiosk nissing uses that are increasingly Grocery store In updated use table, include: Table contains many use types, but is Current Zoning Recommended Changes 2. Add use types that are not listed 2/12/2019

2/12/2019 4. Plan for unforeseen use types Recommended Changes Current Zoning Include general definition for retail If a use is not specifically listed, it is establishments "not otherwise defined" considered not allowed (needs a variance) Allow by special permit in districts where retail uses are generally allowed City of Cambridge - Community Development Department February, 2019 13 5. Consider relaxing some requirements Recommended Changes Current Zoning Additional parking required for many Exempt new parking requirement for any changes of use; "small business" new retail use up to 10,000 SF in an exemption if up to 4 spaces are required existing building Converting an existing non-conforming Consider a range of retail uses that can be commercial use to a new type of retail use allowed by special permit is not allowed (requires variance) Some small businesses types are more Consider if zoning should be more permissive for some retail use types heavily restricted (e.g., theaters, dance halls, commercial recreation, fast order food, veterinary establishments) City of Cambridge - Community Development Department February, 2019 14 7

8 City of Cambridge - Community Development Department February, 2019 16 • How much should existing requirements be relaxed? • Are there issues/concerns with proposed new use types? • What other zoning impediments might small businesses face? Discussion Thank you : 2/12/2019