Proposed zoning amendments for Retail Users and Home Occupations sent to the full City Council and Community Development Department with a favorable recommendation

Atlachment A CITY OF CAMBRIDGE Community Development Department Economic Development Committee To: From: Community Development Department (CDD) Staff IRAM FAROOQ Assistant City Manager for Date: September 25, 2020 Community Development Re: Zoning Recommendations for Retail Uses and Home Occupations SANDRA CLARKE Deputy Director Chief of Administration Overview KHALIL MOGASSABI Following from the July 30, 2020 meeting of the Economic Development and University Deputy Director Relations Committee, this memo includes the following material to be discussed at the Chief of Planning upcoming meeting on September 30, 2020. This material was prepared by CDD staff in consultation with the Law Department and Inspectional Services Department (ISD). • Recommendations and possible zoning text amendments related to Home Occupations, including Retail Residential Kitchens and Cottage Food Production. Recommendations and possible zoning text amendments related to Retail or Consumer Service Establishments as principal land uses in the Zoning Ordinance, including revised and new definitions in Article 2.000, amendments to the Table of Use Regulations in Article 4.000, and criteria for special permit review in Article 10.000. The rationale for these recommendations is summarized on the following pages, and the attached document contains detailed zoning text changes for review and comment. A two-page chart summarizing the recommended changes to the retail land use table is also attached, along with a copy of the Cambridge Zoning Map for reference. Because the suggested changes affect use definitions and regulations at a foundational level, implementing these changes will also require a detailed review of the entire Zoning Ordinance to resolve inconsistencies that may result. For example, Article 6.000 of the Zoning Ordinance containing parking, loading and bicycle parking requirements will need to be modified because it mirrors the Table of Use Regulations. Because this is a time-consuming effort, it should be done only after there is consensus on the desired changes to Article 2.000 and Article 4.000.

CDD Staff Memo - Zoning Recommendations for Retail Uses and Home Occupations Background The retail industry is constantly changing, and Cambridge's retail zoning needs to be flexible enough to allow for current and new businesses to thrive and survive. Since 2015, CDD has been engaged in an effort to analyze and improve base zoning regulations for retail businesses, following the recommendations of the Commercial Land Use Classification Study, Retail Strategic Plan, Envision Cambridge, and other studies. This effort has involved community outreach including surveys of business association leaders, individual business owners, and others in the community, as well as a review of seven years of BZA cases to identify common special permit requests and challenges for local business owners. Based on the studies above and after discussions with the City Council, City staff, and community stakeholders, the following goals were created for the Retail Zoning Initiative: • Consistently define all retail use types • Add use types that are not listed • Regulate "hybrid" activities • Plan for unforeseen use types • Consider relaxing some requirements (parking, change of use, & etc.) • Revise allowed home-based businesses The zoning recommendations that result from this initiative involve complex changes to a foundational part of the Zoning Ordinance. These changes are intended to result in a clearer and more rational set of use regulations that are responsive to the City's future planning goals. However, they must be undertaken carefully to avoid unintended adverse consequences. Home Occupations Per the request of Council, staff looked at how home-based businesses are regulated in the Zoning Ordinance to explore how they could be more inclusive. The suggested language is intended to clarify the range of uses that are permitted as home occupations, particularly artists and other creative professionals, and to clarify the conditions in which they may operate. The most significant suggested change is to include language that would allow a residential kitchen to operate a Cottage Food business. According to state law, a Cottage Food business is defined as a person who produces cottage food products (e.g. jams, baked goods) in a residential kitchen of that person's primary residence. Staff are working to develop a new Cottage Food Operations Permit (through ISD) and webpage to be available once the new zoning is enacted. September 25, 2020 Page 2 of 7

CDD Staff Memo - Zoning Recommendations for Retail Uses and Home Occupations Principal Use Retail or Consumer Service Establishments Part 1: Amendments to Definitions (Article 2.000) As discussed at the last committee meeting, the current Zoning Ordinance does not define retail uses in a consistent way. The suggested zoning text changes in the attached document are guided by the following objectives: • Creating a general umbrella definition of a "Retail or Consumer Service Establishment," to provide a way of regulating uses that do not fall into a specific category. Ensuring that every use listed in the Table of Use Regulations has a corresponding definition in Article 2.000. • Consolidating and incorporating scattered footnotes and other provisions into definitions where appropriate. • Defining common types of use that are not currently defined, such as grocery stores, craft beverage establishments, fitness centers, and temporary outdoor retail. • Removing some provisions that have been found to be overly restrictive or difficult to enforce, such as limitations related to the volume of sales. The summary table at the end of this memo lists the resulting set of defined retail uses, along with explaining the recommended regulatory approach to each. Part 2: Addressing "Hybrid Uses" (New Section 4.39) One of the recent challenges in regulating retail uses is when a single establishment combines the functions of multiple types of use. Ordinarily, such an establishment would be permitted only if all of the component uses are permitted in the district. This issue has been raised frequently in discussions with the Council and community stakeholders. The suggested zoning would permit a scenario where a smaller retail use that is a component of a larger retail use could be permitted, so long as the larger retail use is permitted in the district and the smaller use is limited in size or hours of operation relative to the larger use. For example, a store that offers classes or lectures as a subsidiary function on-site would not need to be permitted as both a store and an educational establishment, so long as it meets the stated limitations. In this scenario, the subsidiary use would not affect parking, loading, or signage requirements. This approach is a novel way to treat hybrid establishments, and while it would lessen some regulatory burdens it could also lead to unforeseen outcomes. The alternative to such an approach would simply be to regulate establishments with multiple principal uses according to the individual components, and to reconsider the types of retail use that are permitted in a particular district. Part 3: Revised Use Regufations (Sections 4.30-4.40.- Table of Use Regulations and Footnotes) With a set of retail uses that are more clearly and consistently defined, the City Council is better able to determine what types of uses are appropriate to what types of zoning districts. The changes suggested September 25, 2020 Page 3 of 7

CDD Staff Memo - Zoning Recommendations for Retail Uses and Home Occupations in the attached document are based on the recommendations of past studies, feedback heard from entrepreneurs and neighborhood/business associations over the years, CDD's Commercial District Assessment Reports, and discussions with the City Councif. Though the changes are very detailed, they follow an overall logic summarized below. The chart at the end of this memo provides a more comprehensive summary of the approach for specific use types. • Retail and Industry Districts: Retail uses are generally allowed, either as-of-right or by special permit. Special permits are required for uses and locations where sensitivity to adjacent uses or compatibility with other permitted uses is a concern. Automobile-oriented uses remain more limited. • Office Districts: Many retail uses are allowed as-of-right if they are on the ground floor and part of a mixed-use building or lot. The suggested text expands a provision in current zoning that allows limited restaurant use in mixed-use buildings, so that it applies to other use types and relaxes some limitations. Some retail uses require a special permit, and retail uses generally require a special permit in the lower-intensity Office 1 District. • Residential Districts: Retail uses are generally prohibited, but a limited set of retail uses may be allowed by special permit if they are located in a building with a pre-existing non-residential space, such as a non-conforming "corner store" site. The specific uses being considered are convenience store, grocery store, personal services establishment, art craft/studio (which is currently allowed by special permit), and Fast Order or Quick-Service Food Establishment. Another part of the rationale is to provide greater consistency in how use types with similar characteristics are regulated. One finding of CDD's review is that as businesses adopt innovative new models, it is often challenging to distinguish between specific types of use within a general category, such as food service establishments or entertainment/recreation facilities. The revised definitions are intended to make those distinctions more clear, but there could still be unanticipated impacts if a subtle distinction between use types creates a vastly different regulatory environment. Part 4: Parking Exemptions for Small Businesses (Section 6.32.1) As discussed at the last committee meeting, the suggested zoning text change would expand the current parking requirement exemptions for small businesses so that they would apply more broadly to non- residential uses established in existing buildings. After discussions with the City's transportation planning staff, this simple but effective change was found to be the preferred approach at this time, and a broader study of parking requirements and policies could be undertaken in the future. Part 5: New Criteria for Retail and Consumer Service Special Permits (Section 10.43.1) The recommended changes to Article 4.000 continue to allow some uses by special permit, which provides a process for site-specific review and approval of establishments. This process can last 3-6 months, which can be an impediment for some retailers, but also provides a mechanism to allow uses that might cause concerns if they were permitted without site-specific review. Through this process, the Page 4 of 7 September 25, 2020

CDD Staff Memo - Zoning Recommendations for Retail Uses and Home Occupations special permit granting authority - usually the Board of Zoning Appeal (BZA) - can place conditions to mitigate the site-specific impacts of a proposed use in a particular location. General criteria for granting special permits are contained in Section 10.43 of the Zoning Ordinance, and apply to all types of uses and all types of special permits. The proposed zoning text would not change these criteria, but would create a new subsection, 10.43.1, that includes additional criteria specific to Retail or Consumer Service Establishments requiring a special permit. The benefit of including these additional criteria is to provide some focus to the review process and guidance to retail operators on what issues are of concern to the City and to the Board of Zoning Appeal in making decisions and incorporating appropriate conditions. The suggested text includes topics discussed at the last committee meeting, including delivery and loading operations, environmental impacts such as dust, odor, and vibration, and compatibility of storefront design. The current proposal adds consideration of whether the establishment serves a public objective identified in citywide or neighborhood plans, which is in response to comments at the last committee meeting to account for whether a use meets a stated neighborhood need. September 25, 2020 Page 5 of 7

No No No No No No No No Page 6 of 7 No No No No (multifamily) SP - Existing Space SP - Existing Space SP - Existing Space SP - Existing Space SP - Existing Space Residential District No Ground story Ground story Ground story Ground story Ground story Ground story Ground story Ground story Ground story Ground story Ground story Ground story Office Districts Ground story Ground story Special Permit Special Permit Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Special Permit Industry Districts Yes/Special Permit Yes/Special Permit Yes/Special Permit Yes/Special Permit Yes/Special Permit Yes Yes Yes Yes Yes Yes Yes Yes Special Permit Special Permit Special Permit Business Districts Yes/Special Permit Yes/Special Permit Yes/Special Permit Yes/Special Permit Yes/Special Permit Yes/Special Permit Grocery Store Convenience Store Use Type Retail Business or Consumer Service Establishment, not otherwise defined Personal Services Establishment Craft Beverage Establishment Bar Bakery, Retail Restaurant Craft Retail and Production Shop Dance Hall or Nightclub Food Hall Theater Fast Order or Quick Service Food Commercial Recreation Establishment Fitness Center Food Stand or Kiosk Merchandise Store Establishment The table below is an overview of the zoning resulting from the attached text suggestions - refer to the zoning text for details Stores Stores Category CDD Staff Memo - Zoning Recommendations for Retail Uses and Home Occupations Entertainment and Entertainment and Entertainment and Recreation Recreation ¡Stores Stores Stores Stores Food and Beverage Personal Services Food and Beverage Food and Beverage Food and Beverage Food and Beverage Entertainment and Recreation Food and Beverage September 25, 2020 ¡Recreation

No No No Page 7 of 7 No No No No No No No No No No (multifamily) Special Permit Special Permit Special Permit Residential District No No No No No No No No Yes Ground story Ground story Ground story Office Districts Special Permit Special Permit Special Permit Special Permit Yes Yes Yes Yes Yes Yes/No Yes/SP/No Special Permit Special Permit Special Permit Special Permit Industry Distriets Special Permit/No Special Permit/No Yes/Special Permit Special Permit/No Special Permit/No Yes Yes Yes Yes Yes Yes Special Permit Special Permit Special Permit Special Permit Business Districts Special Permit/No Special Permit/No Special Permit/No Special Permit/No Special Permit/No Special Permit/No Use Type Outdoor Retail or Consumer Service Performing Arts Studio Drive-In Theater Outdoor Entertainment and Recreation Funeral Home Open-Lot Retail Sales Establishment Drive-In Food Service Establishment Drive-In Consumer Service Establishment Cannabis Retail Store Establishment, not otherwise defined Outdoor Auto Sales Facility Art/Craft Studio Facility Indoor Auto Sales Facility Auto Wash ¡Animal Services Facility Temporary Outdoor Retail or Consumer Service Use Auto Service Station The table below is an overview of the zoning resulting from the attached text suggestions - refer to the zoning text for details Outdoor Retail Outdoor Retail Outdoor Retail Category Outdoor Retail Outdoor Retail Special Retail Special Retail Arts Outdoor Retail Outdoor Retail Special Retail Outdoor Retail Outdoor Retail Outdoor Retail Arts CDD Staff Memo - Zoning Recommendations for Retail Uses and Home Occupations Special Retail September 25, 2020

AOD-3 ost • 8! Resilence P. A-2; Residence A-2 A-1 Residence A-1 Zoning Districts ADD- OS Fresh Pond AGUO Washbum 1: BARI Fiele St C28 Mikchinson st BAL Highland Sti Costal St Fenho si on onto pol C-3. C-2 os Greenough ENc fe g AZEL Emn St Konh Sarate 0-2 AVE C-ZA 1S hoose is 900 River Ellsworth Ava Ave Highland Chattan SI Least Fayale Antrun for the exact location of boun not appear on this map. The zoning lines are refer to the documents on file in the Cir Zoning Dist As adopted February 13, 1961 and modified by sul and including Ordinance #1420 of March 2, 20 City of Cambridge, Mas:

BA BC BB C-3 A-Z A-1 C-1 0-1 C-2 IA-1 0-3 0-2 BA-3 BC-1 BB-2 BA-2 BA-1 С-3В BB-1 С-ЗА C-1A O-2A 0-3А C-2B C-2A District 3.00 0.75 0.75 1.75 3.00 0.50 1.75 2.50 0.50 1.25 0.75 0.60 0.50 1.00/1.75 2.75/3.00 2.75/3.00 1.50/3.00 1.50/3.25 1.25/2.00 1.25/1.50 1.25/1.50 1.50/2.00 1.00/1.75 1.00/0.75 1.00/1.75 2.00/3.00 2.00/3.00 3.00/4.00 Max. FAR BA-42.00w/limitationst 700 450 300 300 600 300 500 600 300 300 600 600 300 300 300 600 500 600 300 1,500 1,000 1,500 1,200 2,500 1,200 1,800 10 10 15 no min no min no min no min no min no min no min no min at least 5 at least 5 (H+L) ÷ 4 (H+L) +5 (H+L) +5 (H+L) : 4 at least 5 (H+L) ÷ 5 (H+L) * 4 (H+L) ÷ 4 {H+L) ÷4 (H+L) ÷ 4 (H+L) ÷5 (H+L) ÷ 4 (H+L) = 4 at least 5. at least 10 (H+L) + 4 (H+L) :5 at least 5 at least 10 at least 10 at least 10 at least 10 at least 10 at least 10 at least 10 10 7.5 no min no min no min no min no min no min no min (H+L) : 6 (H+1) + 5 no min (H+L) + 5 (H+L) + 6 (H+L) +5 no min (H+L) + 5 (H+L) *7 (H+L) +5 (H+L) + 6 (H+L) = 5 (H+L) +6 (H+L) + 5 (H+L) ÷ 5 sum to 25 sum to 20 at least 7.5 Front Yard Side Yard 27.5, sum ≥20 20 20 20 25 no min no min no min (H+L) + 5 (H+L) + 5 no min. (H+L) = 5 (H+L) + 5 H+L) = 5 no min (H+L) + 5 (H+L.) ÷ 4 (H+L) ÷ 4 (H+L) + 5 (H+L) ÷4 (H+L) : 4 (H+L) = 5 (H+L) = 5 (H+L) + 4 at least 20 at least 20, at least 20 at least 20. at least 20 at least 20 at least 20 at least 20 (H+L) + 4 (H+1) = 4 (H+L) = 4 at least 20 at least 20 at least 20 at least 20 at least 20 at least 20 at least 20 45 45. 50 35 45 80 35 35 55 35 45 60 85 45 35 35 120 120 120 60/70 70/85 35/45 55/90 35 or 44 90/120 90/120 12w/lImitations 20w/limitatiors 10w/limitations w/limitations 15% 15% 30% 10% 10% 15% 15% 10% 15% 40% 10% 15% 10% 15% 30% 36% 15% 10% no min no min no min no min no min no min no min no min Min. Lot Area/DWin.Setback/Min. Setback Min. Setback max. Heightin. Os Ratio dwellings dwellings. dweilings dwellings dwellings dwellings most retail uses townhouse dwellings multifamily dwellings townhouse dwellings multifamily dwellings (apartments, condos) some institutional uses most institutional uses single-family detached offices and laboratories most types of residential most types of residential General range of allowed single- and two-family detached single-and two-family detached single-and two-family detached NP сп.a SD-7 SD-4 SD-3 SD-6 SD-8 SD-5 SD-2 SD-1 SD-8A ASD) (incl. MXD CRDD SD-4A Special District exceptions. exceptions. Ordinance) Zoning Ordinance. detailed Table of Use Regulations. residential buildings. number of dwelling units on that parcel. meaning as under Max. FAR (see above). 15 of the Zoning Ordinance. total land area, expressed as a percentage. of open space is encouraged. Notes on Zoning Regulations Table Residence C-3 with exceptions. the length of the building parallel to that lot line. Conversion to housing is encouraged. residentlal and the second to residential & dormitory uses. exceptions. Conversion to housing is encouraged. Between Albany and Sidney Streets in Cambridgeport. Along Linear Park in North Cambridge. Regulations sim Along railroad tracks between Cambridgeport and MIT North Point Residence, Office and Business District. AllI Along Memorial Drive in southern Cambridgeport. Reg Cambridgeport Revitalization Development District. All 1,900,000 square feet of non-residential and 400,000 st biotechnology manufacturing, retail, residential, hotel, Min. Setback = minimum required distance between a parcel's lot line "Ames Street District" (ASD). See Article 14 of the Zonin on FAR and building heights vary. At least 100,000 squi wall of a building, in feet. The symbol (H+L) in a formula represents thi (except where otherwise noted, detailed regula Along Brookline Street in Cambridgeport. Regulations s Near Alewife Station. Allows residential, office, institut Around Fort Washington Park in Cambridgeport. Regul district has a limit on aggregate gross floor area and a n retail, and institutiona: uses. Maximum FAR 1.0, height floar area of the entire district limited to 782,500 squar residential, hotel, and entertainment uses. Aggregate f Ordinance. Greater develapment density allowed throt district, but does not refer to specific allowed uses. See Article 4 of the Max. Height = maximum allowed building height on a parcel, in feet. f Brief Description and Overview of District R Along Acorn Park in North Cambridge. Regulations simi Along Monsignor O'Brien Highway In East Cambridge. + Min. Lot Area/DU = minimum allowed ratio of a parcel's lot area, expr the parcel ("floor area ratio"). Where a slast (/) separates two figures. Mixed Use Development District: Cambridge Center. Al Min. OS Ratio = minimum required ratio of usable open space on a par Max. FAR = maximum allowed ratio of gross floor area on a parcel divi General range of allowed uses gives an overview of the types of uses r