a report from Councillor Dennis J. Carlone, Co-Chair and Councillor Craig A. Kelley, Co-Chair of the Ordinance Committee, for a public hearing held on May 28, 2019 to discuss a petition received from Verizon New England, Inc. to amend the zoning map of the City of Cambridge by creating a new Overlay Zoning District entitled “Ware Street Innovation Space Overlay District: encompassing 10 Ware Street and to amend article 20.000 of the Zoning Ordinance by creating a section entitled “Ware Street Innovation Space Overlay District”

ATTACHMENTA Ware Street Innovation Space Overlay Zoning Amendment The undersigned owner of land to be affected by this petition hereby petitions the Cambridge City Council as follows: To see if the City Council will vote to amend the Zoning Map of the City of Cambridge as follows: That the approximately 60,988 square foot parcel along the northwesterly side of Ware Street and shown on Assessors' Map 135 as Lot 123, currently zoned Residence C-1, be rezoned to create a new overlay zoning district entitled "Ware Street Innovation Space Overlay District" , with the existing Residence C-1 District to remain as the base zoning district. To see if the City Council will vote to amend Article 20.000 of the Zoning Ordinance of the City of Cambridge by adding the following text after Article 20. Ware Street Innovation Space Overlay District 20._ Establishment and Scope. 20._ There is hereby established the Ware Street Innovation Space Overlay District which shall be governed by the regulations and procedures specified in this Section. The Ware Street Innovation Space Overlay District encompasses the property designated Map 135, Lot 123 on the Cambridge Assessors' Map. Purpose. 20._ It is the purpose of this Section to augment existing zoning regulations in order to support local start-up enterprises and entrepreneurs seeking short-term office space proximate to Harvard Square and to take advantage of the unique Teleptunity to laver facily to prost equipment to tesed at the existintion and innovation. Applicability. 20._ The provisions set forth in this Section shall apply solely within the Ware Street Innovation Space Overlay District and only to existing structures housing Telephone Exchange Uses. Requirements. 20._

Use. Notwithstanding the use limitations of the base zoning district or any other 20._- overlay zoning district, Innovation Space shall be allowed within the Ware Street Innovation Space Overlay District upon the granting of a special permit by the Board of Zoning Appeal, subject to the requirements set forth in this Section. Innovation Space Characteristics. For purposes of this Section 20.__, Innovation 20._- Space shall have the following characteristics: a. The total amount of building area dedicated to Innovation Space shall not exceed 10,000 square feet. b. Durations of occupancy agreements (or other similar membership or lease agreements) with individual office occupants shall be for periods not to exceed six (6) months. c. No single business entity may occupy more than one thousand square feet or ten percent (10%) of the entire Innovation Space provided in the Overlay District, whichever is greater. d. The average size of separately contracted private office suites may not exceed 400 square feet of gross floor area. e. Innovation space shall include shared resources (i.e., co-working areas, conference space, classroom space, office equipment, showroom, shop or lab equipment, storage, circulation, supplies and kitchens) available to all occupants/members of the space. f. Individual entities occupying Innovation Space may include small businesses, incubators, small research laboratories, office space for investors and entrepreneurs, facilities for teaching and for theoretical, basic and applied research, product development and testing and prototype fabrication or production of experimental products. g. The owner of a building where Innovation Space is located may enter into a lease, license, or other contract, management, operating or occupancy agreement with a third party whereby the third party provides, administers and manages the Innovation Space without violating the requirements of this Section as the same may be varied by the Board of Zoning Appeal pursuant to Section 20._.-. h. The Board of Zoning Appeal may by special permit allow variations in the specific standards and characteristics set forth in this Section 20._._ if the Board of Zoning Appeal finds that the Innovation Space, as proposed, will be consistent with the purposes of these standards and characteristics.

20.__Special Permit Criteria. In granting a special permit for Innovation Space within the Ware Street Innovation Space Overlay District, in addition to the general criteria for issuance of a special permit as set forth in Section 10.43 of this Ordinance, the Board of Zoning Appeal shall find that the following criteria are met: (a) All Innovation Space area shall be accommodated within the footprint of the existing building without any need for external alterations or additions. (b) Traffic generated by users of the Innovation Space shall not create a substantial adverse impact on nearby residential uses. (c) No on-site parking shall be provided for users of the Innovation Space, other than for Innovation Space occupants with disabilities. (d) The Innovation Space shall not generate excessive noise that would create a substantial adverse impact on nearby residential uses. (e) Lighting associated with the Innovation Space shall not create a substantial adverse impact on nearby residential uses. (f) The site of the Innovation Space shall be designed such that it provides convenient, safe and secure access and egress for users of the space. (g) Access to the Innovation Space shall be limited to members/occupants of the space and invitees of the owner/operator so as to minimize foot traffic in the surrounding residential neighborhood. (h) The Innovation Space shall benefit the local economy. 20.__ Off Street Parking, Bicycle Parking and Loading Requirements. Within the Ware Street Innovation Space Overlay District, the Board of Zoning Appeal may grant a special permit to waive any off-street parking, bicycle parking, and loading requirements applicable to Innovation Space under this Ordinance, provided that the total square footage of Innovation Space does not exceed 10,000 square feet of gross floor area. 20.__ Signs and Illumination. Within the Ware Street Innovation Space Overlay District, the Board of Zoning Appeal may grant a special permit to waive any sign and/or illumination requirements applicable to Innovation Space under this Ordinance if it finds that such waiver will minimize the impacts of the Innovation Space on nearby residential uses. 20.__ Nonconformity. Notwithstanding any provision of Article 8.000 of this Ordinance to the contrary, the Board of Zoning Appeal may grant a special permit for the enlargement or alteration of any preexisting structure within the Ware Street Innovation Space Overlay District housing an Innovation Space use, if it finds that such enlargement or alteration is either necessary to allow the structure to comply with any applicable code, ordinance or regulation. (including without limitation building code) or to accommodate equipment necessary to support the Innovation Space use.

ATTACHmENT B 10 Ware Street Verizon New England Inc. Presentation to Cambridge City Council - May 28, 2019 Petition for Zoning Amendment

Repertory. Theater RoWS Library 10 Ware Street Site arvard Yard

Verizon Facility - View from Ware Street 9 - Street View - Jun 2018

Verizon Facility - Rear View

sowered by Verizon/ ALLEY verizon Existing Signage for Uses

Somerville • The building is approximately 93,446 square feet • Equipment housed in the building serves most of Cambridge and a portion of approximately 10,000 square foot co-working space on the ground floor of the building Site Uses • Beginning in 2017, Alley powered by Verizon has operated an • Since 1932, building has housed a telecommunications center

use case trials technologies that Verizon is bringing online at the site, including 5G wireless technology Unique Technology Platform • The co-working space was opened to serve as an incubator of new • Verizon and member companies collaborate in building technology • One of the first public test environments in the United States for new

Telecommunications Equipment Area

02/17/17 Seat Count 58 : Sent Type OPEN WORKSTATION TEAM ROOM OPEN WORKSTATIONS CONFERENCE TEAM ROOM EXISTING (NOT IN SCOPE) PANTRY LOUNGE OPEN COLLABORATION SUPPORT BUILDING SUPPORT PHONE ROOM 00000 *o.Warkine 10 Ware St. 1103 Floor Plan of Co-Working Space

L 7 ALLEY WI-FI ouredby verizon ALLEY Ground Floor Co-Working Area - Entry

Ground Floor Co-Working Area

Co-Working Shared Amenity Areas

Co-Working Space - Individual Suites

• Industries include education technology, autonomous vehicles, clean energy • Approximately 95 employees Co-Working Operations • Provides inclusive community space and management • Typical duration of Occupancy Agreements - 1 month • Hours of Operation: 9 am to 5 pm; 24/7 card-key access for members • Occupancy Agreements with approximately 25 member companies • Space occupied by member companies ranges from 97 to 261 sf

up pitches (demo days and pitch nights with VCs) with prizes • Include diversity and inclusion events; women's empowerment events; start- • Sponsor educational programs on frontier technologies • Local author book signings with Harvard Bookstore 2-block radius and to engage local academics and business associations Community Engagement • Hosts events, programs, workshops to support local startup visibility • Sources all food and beverage services from local vendors • Offers discounted memberships to all residential neighbors within a

bicycle reducing the supply of parking spaces available to neighbors property to use • No on-site parking available for Alley members • Verizon has sponsored a Blue Bikes rack immediately in front of the • The property also has a free bike rack for Alley visitors and neighbors • Nearly all users access the site by public transportation, walking, or No Traffic or Parking Impacts • Surrounding streets are all permit parking-only, so Alley users are not

Key Harvard Station Red Line Subway BlueBike Station 10 Ware St. MBTA Bus Stop Camb Vest Pl Broadway Ter moridae St Harvard StarberG OpenStreetles improve this map Lee St sworth Ave Highland Ave Crawford St mbridge St Merrill St IS PeNCH Dana St Ellery St ld euea Dana St Harvard St Trowbridge St 1 penge a Quincy St snao o Grant St Plympton St Linde 7 min. walk Plympton St Holyoke St Kirkand House Ever House Stands Mal Winthep House John F. Ke Eliot St Memorial Dr 10 Ware St. | Transportation Connectivity

Bike Parking for Member and Community Use

Proposed Ordinance Amendment exceed 6 months; mixture of shared resources and contracted office suites site access) and benefits the local economy • Ensure that use minimizes impacts on surrounding neighborhood (traffic, noise, lighting, • Include a limit of 10,000 square feet of the building; occupancy agreements that do not • Establishes special permit criteria (in addition to 10.43) • Underlying zoning is Residence C-1 • Establishes use characteristics • Overlay would allow qualifying co-working use (per ISD, office/R&D) property • Creates a Ware Street Innovation Space Overlay District limited to the • Creates a BZA special permit process

ATTACHMENTC Hello, My name is Ronn Kliger and I live at 42 Trowbridge St. At previous hearings at the BZA and Licensing Commission, I have spoken about our neighborhood's 3.5 year struggle with Verizon and their poor track record of disruptions in the neighborhood and repeated failures to take corrective actions. In my comments today, I'm not going to belabor that. You will hear plenty from my neighbors about that this evening and I know you already have heard from many of them with their letters. Instead, I'm going to examine the flip side of this issue—the question of merit and public good. In its petition, Verizon states that its purpose is "to support local start-up enterprises and entrepreneurs". But that is not the real purpose of Verizon's petition. The real purpose, as I found through my research, is to put vacant Verizon real estate to profitable use. From The Washington Post, June 11, 2017: "At telecommunications giant Verizon, massive buildings that used to be filled with bulky computers, copper cables and other gear are sitting vacant, as advances in fiber-optics and computers cut down on the need for equipment space. The shift has rendered more than 80 percent of the company's real estate footprint obsolete, spurring a $2 billion sell-off in property. Then spaces, in which start-ups, freelancers and some larger companies pay to co-locate together in castoff office space or other underused buildings. The telephone company saw a connection. The result is "Alley, powered by Verizon." The National Real Estate Investor, an industry trade journal, puts it more bluntly: "Across the country, Verizon owns about 50 million sq. ft. of telco space at 3,600 properties. ..:a huge chunk of the space is being rendered obsolete. The freed-up square footage can then be earmarked for other uses, including co- working. Alley manages the co-working spaces, while Verizon takes a cut of the co-working membership fees." And finally, here is John Vazquez, Verizon's Senior Vice President of Global Real Estate: The co- working approach is "more profitable, quite honestly, than subleasing the space and just giving someone a tenant improvement allowance and collecting rent". So why Verizon is pushing this petition on us? It's not to help startups and it's not to help the city. It is simply that getting a cut of Alley membership fees is more profitable than letting the Ware St. building sit empty. There are twelve shared workspace facilities within two miles of here and many, many more in the Boston area. I, myself, am an entrepreneur and rent space at WeWork. I can assure you that Cambridge has absolutely no shortage of shared workspace facilities and that the presence or absence of The Alley would have zero effect on startups' abilities to find places to work. So where is the merit in this petition? Other than Verizon's bottom line, I don't see any. I certainly don't see any public good. And as you have already heard, and will hear further tonight, there is plenty of public harm.

AMACHMENT D We're here tonight because Verizon has excess space in their 10 Mare Street building. One good business solution to better use that space has been to lease it to Alley and let Alley, in turn, sublet it as co-working space. Apparently this strategy has been successful. The Boston Celtics' e sports team is a tenant. As is an exotic coffee bean blender. According to the Cambridge Alley web site, they even have an all natural deodorant maker as a tenant. The strategy has been so successful, in fact, that Verizon is petitioning you to rezone the entire nearly 100,000 square foot building into an Innovation District. I wish you wouldn't. Not just because Verizon has been a terrible neighbor. I'm going to suggest co-working industrial space doesn't belong in residential districts. A simple Google search reveals, we have literally a dozen co-working operations is the City. Not one is in a quiet residential neighborhood like ours. Please don't break that established precedent. This week I got the Spring-Summer edition of the Cambridge City View newsletter. The Manager wrote about the housing initiatives Cambridge is implementing. A graphic shows housing as a Key Spending Priority. A side article talks about the City spending over $20 Million of tax money on housing. There is a proposal working its way to this committee to ease the zoning requirements for affordable housing. Residential is clearly a City priority. This spot zoning proposal to convert a residential zoning tract to industrial seems diametrically opposed to the City's strategic direction. I understand that Verizon's use of the 10 Ware Street building as a telephone switching facility is legally non conforming, but as the use of the facility changes, shouldn't Verizon be trying to become more compatible with its residential surroundings, rather than more industrial? And shouldn't our ordinances be nudging Verizon in a direction that the City as a whole will benefit from? With some foresight, and planning, 1 do think Verizon's business interests, the neighboring residents interests, and the City's interests can find common ground. The Planning Board Commissioners had some interesting suggestions. A permanent 100,000 square foot Innovation District doesn't find that common ground: Let's come up with something better. Please reject this proposal. JACK HEmBROugh

ATTACHMENT E Allen K. Gibbs 42-2 Trowbridge Street Cambridge, MA 02138 May 20, 2109 City Council Ordinance Committee City of Cambridge City Hall 795 Massachusetts Ave. Cambridge, MA 02139 RE: May 28 Meeting: Verizon New England, Inc. Petition to amend the City zoning map on Ware Street. Dear Members of the Ordinance Committee: I am a resident neighbor and L oppose the approval of the Verizon Petition to amend the City's Zoning Map to create a new Overlay District entitled "Ware Street Innovation Space Overlay District encompassing 10 Ware Street and to amend article 20.000 of the Zoning Ordinance to create such a district in this C-1 Residential District. I have previously opposed and objected to Verizon's appeals at the Zoning Board of Appeals Hearing of September 13, 2018, and more successfully at the Planning Board Hearing of April 30, 2019. Simply summarized, I consider the Zoning Board of Appeal's decision of September 13, 2018, set a bad precedent for this neighborhood and all C-1 Residential Districts by allowing a "special" Ware Street "innovation district". Lendorse the Planning Board's decision of April 30, 2019 to deny approval of this Verizon Petition. I raise these questions and objections based on Verizon's stated vision and rationale: 1.How much other non C-1 Residential District space is available for such activities near Harvard Square, Central Square, Porter Square, transportation hubs, etc? Why does Verizon, or Alley, need to promote "near Harvard Square'" i.e. their locale, at the expense to this neighborhood? Is this semi-realtor (Verizon/Alley) to carve out a "special" semi-light industrial" overlay zone? I object. 2. Who is to monitor the six (6) months occupancy agreements? What other limitations now, or by future amendment beyond the 10,000 square feet, may occur? 3. I assume this high turnover occupancy commitment remains open 24П, as with Alley now. strongly object to this in a C-1 residential neighborhood. 4. What are the implications for a ZBA waiver for off street parking? The space behind Verizon? If so, I strongly object. I live at 42 Trowbridge Street, facing the back of the Verizon Building and its exit access opposite my drive way on to Trowbridge Street. With 24/7 traffic, NO, please.

Page 2 (Ordinance Committee - Verizon Petition Hearing, May 28, 2019) 5. What "enlargement or alteration" of the 100,000 foot preexisting structure "if found to be necessary to comply with the code" does Verizon envision? For what purposes? Is the ZBA providing an open ended agreement? What equipment is needed now to support the "existing" or "now" Innovation Space(s)? In conclusion: 1. I see no benefit to my neighborhood that will result from accepting this Verizon Petition Space Overlay District in our C-1 Residential District. 2. There are too many unknowns and loopholes in Verizon's proposal that leave an opening for future negative, material impact on residents on Ware, Trowbridge, Harvard and other streets. 3. There is no compelling reason for the Council's Ordinance Committee to look favorably on this Petition to make an exception for an overlay district to the Cambridge C-1 Zoning-by-Law. To do so should set a bad long term precedent for Cambridge residential neighborhoods. 4. I have lived in this neighborhood for fourteen years. Verizon has not shown much good neighborliness. This has been especially true in the past several years with Verizon's inept handling and outreach to explain its renovations and arrival of Alley; its prolonged and poor engineering of the new HVAC noise (behind the building in Verizon parking lot) that flies across an open parking area to Trowbridge Street. I appreciate Verizon is a business and not a real neighbor. Therefor, Loppose Verizon's Petition for a "Ware Street Innovation Space Overlay District' onto a C-1 Residential District. I urge the Council's Ordinance Committee to concur with the Planning Board's decision and to deny this Verizon Petition. Respectully, Allen K. Gibbs 42-2 Trowbridge Street Cambridge, MAO2138

AMTACHMENTE May 28, 2019 City of Cambridge To whom it may concern, I am the CEO of a company called Storyboard That which is a digital storytelling platforms for teachers, filmmakers, and business leaders. We have been members at Alley in Cambridge since July 1, 2017 as a 10 person company. One of the main reasons we selected to work from Alley is due to its location. At the time, Alley represented a convenient location that facilitated a healthy work / life balance. I have since moved from Cambridge, however the Alley location in Harvard Square remains convenient for my team It is well documented that both recent graduates as well as seasoned technical talent enjoy working in Cambridge. Hence, in order to attract top talent we need to go to where the talent lives. I support Verizon's case to keep the Alley coworking facility operational to help young companies like mine access top talent in Cambridge at a reasonable cost and flexible terms. Regards, Aaron Sherman CEO Storyboard That