HomeMy Public PortalAboutInformational Presentation - Economic Development Study TOWN OF WATERTOWN
1630 Office of the Town Manager
4 Administration Building
9s„ 149 Main Street
Watertown,MA 02472
Phone: 617.972.6465
Fax: 617-972-6404
www.watertown,ma.gov
Michael J. Driscoll townmgr@watertown-ma.gov
Town Manager
To: Honorable Town Council
From: Michael J.Driscoll,Town Manager
Date: January 7, 2010
RE: Agenda Item—Informational Presentation
As you are aware, one of the Fiscal Year 2011 Budget Policy Guidelines is to
"institute a formal Town wide Economic Development Program including the newly
rezoned Pleasant Street Corridor District, with a long- term goal to increase town
revenue. The Program should include a marketing plan to prospective developers as well
as the use of state and federal grants and redevelopment programs."
Attached please find correspondence from Steven Magoon, Community
Development & Planning Director regarding the upcoming Economic Development'
Study. I respectfully request an Informational Presentation on this matter be placed on
the January 12, 2010 Town Council Meeting Agenda, The Presentation will be given by
Mr. Magoon and Peter Kwass, Principal, Mt. Auburn Associates.
Thank you for your consideration in this matter.
cc: Steven Magoon, Community Development&Planning Director
Phyllis L. Marshall,Town Treasurer/Collector
Thomas J. Tracy, Town Auditor
Town of Watertown
Department of
1630 Community Development and Planning
m Administration Building
149 Main Street
r Watertown,MA 02472
(617) 972-6417
FAX(617)972-6484
To: Michael ). Driscoll,Town Manager
From: Steve Magoon, DCDP Direct
Date: January 4, 2010
Subject: Economic Development Study
As you know,we have completed the consultant selection process and are ready to begin the
Watertown Economic Development Study. This study will provide a significant step in our efforts
at Town wide comprehensive planning and will provide a basis for the Town's future economic
development efforts.
Attached is both the Request for proposals and the scope of work provided by the selected
consultant team,led by Mt.Auburn Associates,and including the Madden Planning Group,and
Gamble Associates. If possible, I would like to kick off the project with an introduction and
overview before the Town Council at their next meeting. This would include a brief introduction by
me,and a project overview by the consultant team.
Please let me know if you need any further information.
cc Peter Kwass, Mt.Auburn Assoc.
Danielle Fillis,Senior Planner
Town of Watertown
Administration Building
149 Main Street
Watertown,MA 02472
(617)972-6414,Fax(617)972-6414
RFP for ECONOMIC DEVELOPMENT STUDY
I. PROJECT PARAMETERS
The Town of Watertown is seeking proposals from a qualified Massachusetts Consultant/Firm to
for an ECONOMIC DEVELOPMENT STUDY. This project is grant funded and dependant on
availability of such funding.
It. GENERAL OVERVIEW&SCOPE OF WORK
Introduction:
The Town of Watertown will conduct a planning study to set the direction for economic development
within the Town. This effort will provide a framework for future decisions about specific projects while
promoting overall economic activity. An economic development study will complement ongoing and
future open space,zoning,housing,and transportation and parking studies to form an updated
comprehensive master plan for the Town. Together,these studies will promote and guide responsible
development activity in Watertown.
Approximately half the land within the Town of Watertown is used for non-residential uses,but these
uses account for less than 25 percent of the assessed value. Because of its desirable location to Boston,
Cambridge, and the Charles River,the Town is subject to real estate demands for a wide variety of uses
and depending on market fluctuations, including housing,office,retail and research and development.
The Town is completely built out,but many sites are underutilized and subject to development pressure.
If directly appropriately,private investment and redevelopment stands to improve the quality of life for
existing and new residents by improving the tax base and providing new amenities,services,and choices
forjobs and housing.
The Town Council has made economic development a priority,and the Council Sub-Committee on
Economic Development and Planning is focusing on several issues and initiatives. In densely developed
areas like Watertown Square,Coolidge Square,and other neighborhood commercial centers,parking and
access remains a serious concern for merchants and their customers. The recent planning study and
rezoning for the Pleasant Street Corridor was undertaken to promote economic activity in formal
industrial lands on the west side of Town,but implementation is ongoing. In other parts of town,the
reuse of the former industrial lands is being assessed on a project by project basis without an overall
framework for decision. Recent policy discussions have centered on establishment of an Economic
Target Area and the use of the State 43(d)designation. In many of the commercial areas,the zoning and
signage regulations need to be reformulated to attract and encourage appropriate investment.There also is
a need to provide predictability for all stakeholders in the transitional areas between traditional land uses
in several areas of town.
The study area will encompass the entire Town of Watertown,taking into consideration the context of
surrounding towns. The primary mixed-use commercial and industrial areas are the Arsenal/Arlington
Street area on the East side and the Pleasant Street corridor on the West side. Watertown Square,
Coolidge Square,and the South side serve as the primary commercial retail districts. Several smaller
centers distributed throughout town serve their immediate neighborhood areas. The recent plan for the
Pleasant Street corridor and its findings will be incorporated into this study.
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Town of Watertown
Administration Building
149 Main Street
Watertown,MA 02472
(617)972-6414,Fax(617)972-6414
RFP for ECONOMIC DEVELOPMENT STUDY
Project Goals:
The project goals are to undertake strategic planning efforts to facilitate economic development activity in
the community including
1. Promote appropriate economic development activity throughout the Town
2. Identity key opportunity sites within the established commercial and industrial districts
3. Identity solutions to ongoing issues that restrict commercial investment and retail activity in
certain districts.
4. Develop implementation strategies,build capacity,and clarify roles and responsibilities for
economic development.
5. Engage the public,merchants and businesses,real estate community,Town leaders,and other
stakeholders.
6. Create a document that will become an element in a comprehensive plan for the Town.
Scope of Work:
Task I.Analysis
• Assess the context for economic development in Watertown,addressing strengths and
weaknesses,competitive advantages and complementary advantages and complementary
relationship to other towns and centers,patterns of use for commercial office,research,
manufacturing,and housing,and issues related to access,taxes,and regulatory framework.
• Evaluate the existing mix of uses and identify vacancies and potential redevelopment areas,also
focusing on transitional areas.
• Identify key stakeholders and conduct focus groups to document their goals,aspirations, and
issues
• Summarize key issues that affect the success and key commercial areas,such as the public realm,
traffic, parking,density, and character,convenience for residents and employees,maintenance
issues,regulatory framework,etc.
Task 2. Opportunities and Strategy
• Explore different strategies for the improvement of the commercial retail centers,considering mix
of uses,maintenance,and management,relationship to surrounding uses,access,parking,public
improvements,private investment,and redevelopment.
• For the key redevelopment sites in the mixed-use districts,identify possible scenarios that include
changes in use and density.
• Test ideas with a range of stakeholders,including residents,retail and business tenants,property
owners,and Town leaders.
• Develop a preferred strategy for each of the key commercial areas in the Town.
Task 3. Implementation
• Identify tools and programs that could be used to achieve the preferred strategy including
potential funding sources,models for management,maintenance,information management,
marketing,small business assistance,signage programs,tenant recruitment, and other initiatives.
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• Identify necessary changes to the regulatory framework to achieve the recommended strategies.
Town of Watertown
Administration Building
149 Main Street
Watertown, MA 02472
(617)972-6414, Fax(617)972-6414
RFP for ECONOMIC DEVELOPMENT STUDY
• Clarify roles and responsibilities of the Town,non-profit organizations,property owners,tenants,
and others
• Establish the overall agenda and priorities for the Town Council Sub-committee on Economic
Development and Planning and Town staff.
Proposed Budget:
The proposed budget for these project activities is summarized below.
Task 1: Analysis $23,500
Task 2: Opportunities and Strategy $20,000
Task 3: Implementation $30,000
Total $73,500
111. REOUEST FOR PROPOSAL INSTRUCTIONS
Proposal Instruction
The requirements set forth in these "RFP Instructions" shall become an integral part of a
subsequent contractual arrangement.
Receint of Pronosals
The Town of Watertown will receive sealed proposals for ECONOMIC DEVELOPMENT
STUDY at the Town of Watertown,Purchasing Department, 149 Main Street,Watertown,
MA,02472 no later than 2:00 p.m.,Wednesday,August 12,2009.
No proposal received after the time established for receiving said proposals will be considered
regardless of the cause for delay in the receipt of any such proposal(s).
Questions concerning this Request for Proposals must be submitted in writing to: Raeleen
Parsons, Purchasing Agent, 149 Main Street, Watertown, MA, 02472. Questions may be
delivered, mailed, emailed or faxed. Written responses will be mailed or faxed to all proposers on
record as having picked up the RFP.
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Proposal: Economic Development Study
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Submitted: August 12, 2009
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In the most recent news, it is a Watertown company that has developed a cutting-edge
high-tech lithium-ion battery. Another firm is at the forefront of the national move to
digitize healthcare records. A Watertown company involved in clinical research for
s biotech and pharmaceuticals beat out 81 other applicants for coveted accelerator loans
from the Massachusetts Life Sciences Center. The renowned Brewer Fountain is being
sent to Boston to be restored by a preeminent art restoration firm that is looking to
expand. Harvard University publishes at the Arsenal, only one of many occupants of its
historic campus overlooking the river. Perhaps less known is the fact that Watertown is
home to the nation's largest custom manufacturer of titanium and carbon-fiber bicycles.
Watertown CEOs and professionals are quoted on everything from health insurance to
interior design.
With a foot in the door in both biotech and energy, Watertown could be well-positioned
to lead on many initiatives that have become high priorities in our economy. The Town
occupies a key position in the MetroWest Biotech Region, on a line between Boston and
j Worcester, adjacent to Cambridge, MIT, and Harvard as well as the teaching hospitals of
Boston. According to the Massachusetts Biotechnology Council,Watertown is one of the
towns that has biotech laboratories in place but hasn't yet positioned itself as a
destination for this sector. The Boston Biomedical Research Institute has a history of
working with high school students to inspire them to pursue sciences, while enhancing
the school's academic offerings in general.
Watertown is, in fact, a hidden gem. It has many of the benefits of a small town with
access to the economic, cultural, and educational resources of a big city. Cultural
destinations like the Arsenal Center for the Arts are complemented by safe
neighborhoods, a good school system, international food offerings, coffee shops, and
fresh green grocers. To maintain these resources, elected representatives working at the
local, state, and federal levels have secured stimulus funding to reinvest in roadways,
schools, and local businesses. Over the years, major initiatives such as the clean-up of
the Arsenal and reconstruction of Arsenal Street have resulted in significant economic
development benefits. Waiting out the economy, the Pleasant Street Corridor is well-
positioned for new investment with the reconstruction of the roadway, new mixed-use
zoning, and available sites and buildings, including the Aetna Mills, one of the state's
economic development priority sites.
Managing the tax base is a fine art that involves minimizing the tax burden on residents,
while still making Watertown an attractive place to invest for businesses. For Fiscal
2009, residential property comprises 75 percent of the property value, while occupying
only one-half of the town's land. Commercial and industrial uses together represent 16
percent of the value but occupy about one-third of the land. Since very little property is
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vacant, investment in the commercial and industrially-zoned land is a key strategy for
increasing the Town's tax revenues in the long-term.
APPROACH
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The Economic Development Study is a prime opportunity for the Town, along with its
leaders, businesses, and residents, to establish the Town's economic position and the
priorities for the immediate and long-term future. To do this well, the strategic planning
effort must take into account the
1. unique geographic opportunities in Watertown, at the regional level and at the local
level, with the close proximity of residential, retail, and business uses and
environmental resources;
2. appropriate economic sectors and businesses to target, both town-wide and for key
sites;
3. the need to engage stakeholders at many levels to achieve the best outcome for the
Town and to ensure long-term success of the strategy;
4. the integration of economic development with the other elements of comprehensive
planning, including environment and open space, transportation, housing, public
facilities, and other elements;
5. the public and private resources available within the Town to manage economic
development; and
6. the necessary focus on implementing the recommendations of the study.
The overall study is expected to take approximately six to eight months and will involve
three main phases as outlined in the RFP: Analysis, Opportunities and Strategy, and
Implementation.
The project team will be able to expedite the Analysis phase with its pre-existing
knowledge of the Town and its businesses. A key element will be setting up an efficient
process to engage businesses in order to understand their location decisions and needs,
while also involving the more Town-wide community. During this phase we will be
analyzing economic data and comparing this with on-the-ground knowledge of
Watertown.
The Opportunities and Strategy phase will consider different scenarios that could work
in Watertown, factoring in different levels of public involvement, a range of targeted
economic clusters, and the implications in use and density for key sites. This effort will
bring the economic data down to the ground, integrating it with the realities of
Watertown's physical setting and competitive advantages, as well as the need to consider
amenities and place-based strategies that can draw commercial and industrial interests.
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Implementation will be a factor throughout the study, but during the final phase we will
focus on fine-tuning the tools and programs that will best serve Watertown given existing
and potential resources. Stakeholder engagement will help ensure that these
recommendations have strong support, and the project team will work closely with Town
officials to ensure that the recommended strategies can be achieved.
A more detailed description of the project tasks is provided in the Scope of Services.
'PROJECT TEAM
Mt. Auburn Associates will lead the effort, working in collaboration with Madden
Planning Group and Gamble Associates. Together, this team offers exceptional
qualifications in economic development strategy, with national expertise tied to local
knowledge. All members of the team are committed to working with local officials and
stakeholders to develop a plan that uniquely resonates with the Town of Watertown. We
bring to this project a deep understanding of economic trends at the national, state, and
local levels. We also recognize the value of creating a strong sense of place that will
endure as economical cycles change. In the end, a strong economic development policy
must incorporate the supporting infrastructure of transit, roadways, telecommunications,
utilities, a trained workforce, and quality of life.
Peter Kwass of Mt. Auburn Associates will be the Principal-in-Charge of the project,
drawing from over 25 years of experience in local and regional economic development
planning. He will work closely with Kathryn Madden of Madden Planning Group, who
has advised the Town on the development of the Arsenal on the Charles and on the
planning and rezoning for the Pleasant Street Corridor. Kathryn is a longtime resident of
Watertown. David Gamble of Gamble Associates will provide urban design and
architectural insight into the factors that contribute to creating a strong economic
development base in the Town. Supporting staff will assist the team with data analysis,
y GIS, research, and production.
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,SCOPEOF
Task 1. Analysis
1.1 Project Kick-Off
• The project team will meet with the Town staff to establish the project schedule,
collect data and previous reports, and refine the goals and objectives of the study
as necessary. At this time, the project team will also work with the Town to
refine the stakeholder engagement process including identifying likely focus
groups and key individuals, and appropriate milestones to engage the Town
Council and the larger public. We will also establish a regular schedule of
meetings with Town staff to ensure good communication and collaboration.
• An initial meeting with the Economic Development Sub-Committee will help
establish Town issues, aspirations, and priorities related to economic
development. As the project moves forward, key representatives of different
constituencies could be engaged to participate on a regular basis at the Sub-
Committee meetings, creating a forum for interactive discussion that would help
to steer the Economic Development Study.
1.2 Review of Existing Studies
To ensure that the consultants.do not"reinvent the wheel," an important first task will be
to review all relevant existing economic and planning documents, including studies of the
local and regional economic base and key industries, labor market studies, and
information on proposed infrastructure and development projects and other economic
development initiatives.
1.3 Economic Audit
The purpose of the economic audit will be to assess trends in Watertown and surrounding
communities that will shape economic growth and real estate demand throughout the area
and to assess Watertown's competitive position. The economic audit will be broken into
the following components:
• Analysis of economic trends affecting employment and business activities in the
Town and the surrounding area. Using available data, the consultants will look at
general local and regional economic trends.
• Analysis of employment sources. The industries providing significant local and
regional employment will be identified. The analysis will identify industries that
are already highly concentrated in Watertown as well as industries that are highly
concentrated in surrounding communities, representing targets of opportunity for
Watertown.
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1.4 Commercial Real Estate Analysis
The consultants will analyze the trends for commercial real estate in Watertown and
surrounding areas to more specifically identify development opportunities. The analysis
of commercial real estate demand will draw from the analysis from the Economic Audit
to identify the sources of overall regional economic growth and the resulting commercial
real estate demand among key economic sectors. Data for Watertown will be compared
with surrounding communities. Private real estate reports on the local real estate market
will also be reviewed. The results of this analysis will be an understanding of the overall
potential for key industries, the implications for demand for various categories of
commercial space (e.g., office, research, manufacturing), and the competitive strengths
and weaknesses of Watertown relative to competing locations.
1.5 Physical and Regulatory Setting
• The assessor's tax data will become the basis for analysis of the existing mix and
distribution of land uses, zoning,property values, and tax generation. The project
team will use GIS to evaluate these patterns across the Town.
• Field reconnaissance will be used to verify this data and, in particular, to note
vacant and underutilized properties, areas in transition, and the availability of
suitable commercial buildings and sites. The mix of uses and relative strengths of
the retail commercial centers will also be analyzed.
• Infrastructure issues will be documented based on field reconnaissance, previous
studies, and conversations with the Department of Public Works and other
stakeholders, focusing on issues that directly affect economic development
including transit service, transportation access, parking, utility capacity and
condition, and telecommunications.
• An analysis of local zoning will assess the implications for attracting target
businesses and industries, including the benchmarks set by the Massachusetts
Biotech Council and other economic development agencies. Other relevant
aspects of the state and federal regulatory framework will also be addressed.
1.6 Stakeholder Engagement
During this phase, a combination of focus groups and one-on-one interviews will be held
to include the following:
• Conversations with business organizations, state and regional economic
development officials, developers, property owners, and commercial realtors to
understand recent real estate market trends, planned projects, vacant space, and
the existence of any supply gaps in the marketplace, such as small or large size
spaces,multi-tenant space, etc.
• Interviews with managers and businesses currently located in the Town to
understand their perceptions of the current business environment relative to
competing locations, any expansion plans, and development constraints that, in
their view,need to be addressed.
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At the end of the Analysis Task,we anticipate the following:
• Meeting with the Economic Development Sub-Committee and engaged
stakeholders to present the preliminary analysis findings and to discuss potential
opportunities.
• As appropriate,meetings with the Town Council and the public to update them on
the study findings.
Deliverables:
• Technical memorandum summarizing the economic audit and commercial real
estate analysis.
• Technical memorandum documenting the physical and regulatory setting
including GIS maps and supporting graphics and charts.
• PowerPoint presentation highlighting the key economic, physical, and regulatory
issues and opportunities.
Task 2. Opportunities and Strategy
2.1 Identify Target Markets
The strategy will include recommendations on which types of development, users, and
industries Watertown is best positioned to attract Target markets specific to each of the
J Town's key commercial areas wifl be identified. The recommendations will address the
quality of development, unit sizes, project amenities, infrastructure, public services, and
other factors that will be necessary to satisfy market demand and sustain Watertown's
competitive strengths. The Town's proximity to research universities and teaching
hospitals, airport access and transportation network, and natural and community assets
will all be considered.
2.2 Retail Centers
The role of the retail centers in supporting both business and residential uses will be
explored, focusing on the mix of uses, ease of use, overall character, pedestrian
environment, and the physical connections, parking, and accessibility. The
recommendations in previous and ongoing studies in Watertown Square and Coolidge
Square will be a resource, complemented by the Project Team's assessment.
2.3 Reuse and Repositioning Scenarios
For key sectors of Town and/or redevelopment sites, a range of scenarios will be
explored testing changes in use and density to meet the demands of target markets.
Connections, amenities, and critical mass necessary to attract key industries will be
integrated into the scenarios to understand how these factors will influence economic
development strategies.
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2.4 Stakeholder Engagement
At the end of the Opportunities Task, we anticipate the following meetings as a means to
determining the preferred strategy:
% • Meeting with the Economic Development Sub-Committee and engaged
stakeholders to discuss the opportunities and strategies.
• As appropriate,meetings with the Town Council and the public to update them on
the progress of the economic development study.
_t 2.5 Preferred Strategy
Based on the Task 2 studies and the stakeholder discussions, a preferred strategy will be
developed outlining the target markets and recommendations for each of the key
commercial areas in Town.
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Deliverables:
• Technical memorandum summarizing the target markets.
• Technical memorandum documenting the positioning of the retail centers.
i • Diagrams, plans, charts, and other supporting material to document the scenarios
J and the preferred strategy.
• PowerPoint presentation highlighting the opportunities and strategy
recommendations.
Task 3. Implementation
The implementation strategy will be an essential element of the strategic plan. The short-
, intermediate-, and long-term actions, roles, and responsibilities of the Town and other
local stakeholder groups, and resources necessary to achieve the recommended strategies
will be included.
3.1 Tools and Programs
The Project Team will identify a range of programs and other tools that could be used to
achieve the preferred strategy. Funding sources might include the federal stimulus
package, the Life Sciences Initiative, or other state funding, and private foundations,
promoting projects suitable to be led by the private sector and those suitable for the
public or nonprofit sectors. The Project Team will consider a variety of economic
development tools available in the state as well as successful models being used in other
communities nationwide. Managing and communicating information will be an
important element, although any recommendations must be matched with the necessary
resources to sustain these activities. Models for management, maintenance, small
business assistance, signage programs, tenant recruitment, and other initiatives will also
i be researched and presented for consideration.
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3.2 Regulatory Framework Recommendations
Based on the goals and objectives of the economic development strategy,
recommendations will be made regarding the delineation of zones and the use, density,
and dimensional aspects that may be creating barriers for economic development,
keeping in mind the sensitivity of adjacent residential areas and the character of the
Town. Strategies to streamline the approval and regulatory process will also be identified
as a means of creating a more predictable and transparent process.
3.3 Roles and Responsibilities
In discussions with the Town and key stakeholders, the roles and responsibilities of
different entities will be clarified as they relate to economic development in general and
the recommended strategies in particular, addressing the Town departments and boards,
state agencies, nonprofit organizations, and the private property owners and tenants. The
need to build capacity within various sectors will also be addressed, with the goal of
sustaining some of the stakeholder engagement that develops during the project.
3.4 Priorities
Given a menu of wide-ranging opportunities in terms of funding programs, engagement
with stakeholders and other entities, and possible regulatory changes, the Project Team
will work closely with the Town to establish an overall agenda and priorities. Every
effort will be made to be sure that there is a broad base of support for the overall
direction, key initiatives, and necessary resources to implement and sustain the
recommendations.
3.5 Stakeholder Engagement
At the end of the Implementation Task,the following meetings will be held to convey the
overall findings of the study, to elicit feedback on preliminary recommendations, and to
highlight next steps to begin implementation.
• Meeting with the Economic Development Sub-Committee and engaged
stakeholders to discuss opportunities and strategies.
l • Meeting with the Town Council and the public to present and discuss the findings
of the economic development study.
Deliverables:
• Draft and final reports documenting the economic development study, including
the implementation strategies. The final report will be delivered in digital form
with narrative and supporting diagrams,plans, and charts.
• Digital documentation of the technical appendices including the technical
memoranda developed during the course of the work.
• PowerPoint presentation highlighting the final economic development plan and
implementation strategies.
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