APPENDIX FOR THE ECONOMIC DEVELOPMENT STRATEGY CITY OF LYNN, MASSACHUSETTS. May 16, PDF Free Download

APPENDIX FOR THE ECONOMIC DEVELOPMENT STRATEGY CITY OF LYNN, MASSACHUSETTS May 16, 2005 Prepared for: City of Lynn Office of Economic & Community Development Lynn City Hall 3 City Hall Square Lynn, MA Attention: Mr. Don Walker Prepared by: RKG Associates, Inc. Economic, Planning and Real Estate Consultants 277 Mast Road Durham, NH 03824 Economic Planning and Real Estate Consultants Tel: 603-868-5513 FAX: 603:868-6463 Web: www.rkg1.com

TABLE OF CONTENTS I. APPENDIX...1 A. Economic Conditions and Trends... 1 1. Employment and Business Trends... 1 2. Transition in the Employment Base... 4 3. Employment by Selected Sectors... 7 4. Growth Sectors... 8 B. Demographic and Labor Force Characteristics... 10 1. Population and Households Trends and Projections...10 2. Population by Age...11 3. Households by Income...12 4. Educational Attainment...13 5. Employment in Major Industries...13 6. Commuting Patterns...13 7. Unemployment Rate and Labor Force Trends...14 C. Development Potential for Additional Retail and Service in Lynn, MA... 15 D. Regional Real Estate Market Conditions... 19 1. Office Market...19 2. R & D Market...20 3. Industrial Market...20 E. Commercial and Industrial Availabilities in Lynn... 21 F. Results of a Survey of Lynn Businesses and Major Employers... 23 G. Lynn s Residential Median Values and Chapter 40-B Housing... 26 H. Lynn Tax Base and Trends... 27 I. Lynn s Economic Opportunity Zones... 29 1. Downtown...38 2. Central Lynn...42 3. Lynnway...48 4. GE-Riverworks/Western Avenue...52 5. Broad Street/MBTA Corridor...58 6. Boston Street/Western Avenue...64 7. Lower Broadway...70 8. Hospital...74 RKG Associates, Inc. Page i

I. APPENDIX This appendix contains statistics, graphs, maps and tables of data assembled by RKG Associates, Inc. (RKG) for the economic development strategy for the City of Lynn, MA. A. Economic Conditions and Trends Statistical data on employment and business trends are presented in this section for the City of Lynn and its region. For this report, the region is the South Essex Workforce Investment Area (WIA) as defined by the Massachusetts Division of Career Services (DCS) & Massachusetts Division of Unemployment Assistance (DUA), formerly known as the Massachusetts Division of Employment and Training (DETMA). The region includes the communities of Beverly, Danvers, Essex, Gloucester, Hamilton, Ipswich, Lynn, Lynnfield, Manchester, Marblehead, Middleton, Nahant, Peabody, Rockport, Salem, Saugus, Swampscott, Topsfield and Wenham. Lynn s geographical position within the region is exhibited in the map on the following page. 1. Employment and Business Trends Figure A-1: Jobs in Lynn declined by 32% between 1985 and 2004, while in the region jobs increased by 10%. In 2004, Lynn s employment (24,540) represented about 15% of the jobs in the region (166,120), a decline from 24% in 1985. This data suggest Lynn has lost its prominence as an economic center of the region, and did not benefit from the economic expansion of the late 1990s as the region did. Jobs in Lynn Employment Trends (1985-2004) 36,000 34,000 32,000 30,000 28,000 26,000 24,000 Source: DETMA & RKG Lynn & So. Essex WIA 1985 1989 1993 1997 2001 1987 1991 1995 1999 2003 City of Lynn So. Essex WIA 170,000 165,000 160,000 155,000 150,000 145,000 140,000 Jobs in So. Essex WIA RKG Associates, Inc. Page 1

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Figure A-2: Businesses in Lynn declined from a high of nearly 1,600 in 1986 to a low of 1,190 in 1997. Since 1997, the number of businesses increased to 1,390 in 2004. In comparison, businesses in the region increased from 9,100 in 1985 to 12,170 in 2004. Businesses in Lynn 1,600 1,500 1,400 1,300 1,200 Business Trends (1985-2004) Lynn & So, Essex WIA 13,000 12,000 11,000 10,000 9,000 Businesses in So. Essex WIA 1,100 1985 1989 1993 1997 2001 1987 1991 1995 1999 2003 8,000 Source: DETMA & RKG Lynn So. Essex Appendix Table A-1 exhibits statistical data from MA DCS & DUA for Lynn and the South Essex WIA. Total employment, the number of businesses and the average wage for each year is shown. Appendix Table A-1: City of Lynn Economic Development Strategy - Employment, Businesses and Wage Data Employment Businesses Average Wage Year City of Lynn So. Essex WIA City of Lynn So. Essex WIA City of Lynn So. Essex WIA 1985 35,818 151,044 1,452 9,095 $23,457 $18,383 1986 34,998 155,616 1,596 10,065 $24,522 $19,565 1987 34,923 158,281 1,578 10,521 $24,875 $20,667 1988 33,149 160,297 1,542 10,717 $25,732 $21,992 1989 31,549 160,005 1,549 10,917 $27,422 $22,964 1990 29,682 154,405 1,510 10,905 $28,245 $23,832 1991 26,724 144,275 1,403 10,454 $28,883 $24,765 1992 26,425 143,291 1,281 10,001 $30,096 $26,115 1993 26,506 145,867 1,273 10,233 $30,130 $26,611 1994 25,858 148,550 1,248 10,587 $30,674 $27,337 1995 26,271 154,042 1,258 10,908 $30,815 $28,306 1996 26,097 158,061 1,224 10,976 $31,946 $29,143 1997 26,141 164,388 1,188 11,341 $33,055 $30,353 1998 26,191 169,261 1,202 11,692 $34,026 $31,227 1999 25,648 169,175 1,264 12,001 $37,217 $33,543 2000 25,207 167,489 1,255 11,212 $39,289 $36,642 2001 25,489 168,141 1,301 11,490 $40,392 $37,663 2002 25,273 167,838 1,311 11,730 $42,016 $37,856 2003 24,540 165,722 1,352 12,005 $44,044 $40,196 04 [1] 24,537 166,121 1,391 12,169 $43,472 $39,156 [1] 2nd quarter Source: MA DCS & DUA, and RKG Associates, Inc. RKG Associates, Inc. Page 3

2. Transition in the Employment Base Figure A-3: The decline in employment affected the make-up of Lynn s employment base. Manufacturing jobs represented 43% of the base in 1985, but only 20% in 2004. Trade employment represented 20% of the base in 1985 but only 16% in 2004. On the other hand, the services sector increased from 21% in 1985 to 36% in 2004. Similarly, the government sector increased from 9% in 1985 to 18% in 2004. Lynn, MA: Transition in Employment by Major Industry 2004 2000 Manufacturing Services Trade (Whs. & Ret.) 1995 Government Fin., Ins. and RE Construction 1990 Trans. Comm. & P.Util. 1985 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Jobs in Lynn Figure A-4: Employment in the manufacturing sector in the region declined from a 25% representation in 1985 to 12% in 2004. Services employment accounted for 33% of the regional base in 2004, as compared to 21% in 1985. Trade employment accounted for 29% of the base in 2004, similar to the 30% representation in 1985. 2004 2000 1995 1990 1985 South Essex WIA: Transition in Employment by Industry 0 25 50 75 100 125 150 175 Manufacturing Services Trade (Whs. & Ret.) Government Fin., Ins. and RE Construction Trans. Comm. & P.Util. Jobs in So. Essex WIA inthousands Appendix Table A-2 details employment by selected industries for the corresponding years for Lynn and the region. RKG Associates, Inc. Page 4

Figure A-5: Lynn lost nearly 10,500 jobs in the manufacturing sector between 1985 and 2004, accounting for nearly 60% of the employment lost in this sector in the region. Lynn also experienced losses in the Trade and Financial Sector in comparison to gains in the region. Lynn experienced marginal growth in the Services sector in comparison to the increase in the region. Changes in Jobs by Industry Sectors 1985 to 2004 Total Employment Trans. Comm. & Util. Construction Fin., Ins. and RE Government Trade (Whs. & Ret.) Services Manufacturing So. Essex Lynn (20,000) (10,000) 0 10,000 20,000 30,000 Change in Jobs Figure A-6: Between 2000 and 2004, Lynn lost 1,550 jobs in the manufacturing sector, while the region experienced a loss of 5,580 jobs in this sector. Lynn experienced a gain of 1,660 jobs in the Services sector during this period, which accounted for more than 50% of the increase in the region. Lynn however experienced losses in all the other sectors (except construction) while gains were experienced in the region (except in Trade). Changes in Jobs by Industry Sectors 2000 to 2004 Total Employment Trans. Comm. & Util. Construction Fin., Ins. and RE Government Trade (Whs. & Ret.) Services Manufacturing So. Essex (6,000) (4,000) (2,000) 0 2,000 4,000 Change in Jobs Appendix Table A-3 exhibits the specific data on the long and short term changes in employment by the sectors. Lynn RKG Associates, Inc. Page 5

Appendix Table A-2: City of Lynn Economic Development Strategy Employment Trends by Major Industry Sectors for Selected Years City of Lynn 1985 1990 1995 2000 2004 [1] Manufacturing 15,482 10,240 8,000 6,554 5,010 Services 7,480 7,335 7,396 7,253 8,911 Trade (Whs. & Ret.) 7,047 6,386 4,552 4,258 3,881 Government 3,203 3,475 4,251 4,680 4,353 Fin., Ins. and RE 1,304 1,026 971 987 795 Construction 785 643 464 765 1,052 Trans. Comm. & P.Util. 461 526 562 627 455 Agr., Fish & Forest 58 51 75 90 80 TOTAL 35,820 29,682 26,271 25,214 24,537 South Essex WIA 1985 1990 1995 2000 2004 [1] Manufacturing 38,235 31,030 27,449 26,091 20,510 Services 32,397 38,935 44,781 51,537 54,772 Trade (Whs. & Ret.) 45,170 46,824 46,236 48,691 48,086 Government 18,281 19,299 19,112 21,394 22,133 Fin., Ins. and RE 5,971 7,124 6,195 7,268 7,826 Construction 5,327 4,847 4,369 5,534 6,567 Trans. Comm. & P.Util. 4,162 4,969 4,546 5,297 5,596 Agr., Fish & Forest 1,501 1,377 1,354 1,603 631 TOTAL 151,044 154,405 154,042 167,415 166,121 [1] 2nd quarter Source: MA DCC & DUA, and RKG Associates, Inc. Appendix TableA-3: City of Lynn Economic Development Strategy - Changes in Employment by Industry Sectors (Long & Short Term) City of Lynn So. Essex WIA 1985 to 2004 # Change % Change # Change % Change Manufacturing (10,472) -67.6% (17,725) -46.4% Services 1,431 19.1% 22,375 69.1% Trade (Whs. & Ret.) (3,166) -44.9% 2,916 6.5% Government 1,150 35.9% 3,852 21.1% Fin., Ins. and RE (509) -39.0% 1,855 31.1% Construction 267 34.0% 1,240 23.3% Trans. Comm. & P.Util. (6) -1.3% 1,434 34.5% Agr., Fish & Forest 22 37.9% (870) -58.0% TOTAL (11,283) -31.5% 15,077 10.0% City of Lynn So. Essex WIA 2000 to 2004 # Change % Change # Change % Change Manufacturing (1,544) -23.6% (5,581) -21.4% Services 1,658 22.9% 3,235 6.3% Trade (Whs. & Ret.) (377) -8.9% (605) -1.2% Government (327) -7.0% 739 3.5% Fin., Ins. and RE (192) -19.5% 558 7.7% Construction 287 37.5% 1,033 18.7% Trans. Comm. & P.Util. (172) -27.4% 299 5.6% Agr., Fish & Forest (10) -11.1% (972) -60.6% TOTAL (677) -2.7% (1,294) -0.8% NOTE: 2nd quarter of 2004 Source: MA DCC & DUA, and RKG Associates, Inc. RKG Associates, Inc. Page 6

3. Employment by Selected Sectors Despite the employment transition that has occurred in Lynn over the last twenty years, the City still maintains a strong and viable employment base. Nearly 92% of Lynn s private employment in 2004 (2 nd quarter) is concentrated in twenty-four major industry sectors as shown Appendix Table A-4. General Electric remains Lynn s largest employer, and most of its employment is categorized as Durable Goods Manufacturing, which accounts for 18.5% of the private employment in the City. Employment in three health-related sectors contributes another 23% of total employment in the City. In comparison, these same four sectors account for about 25% of the employment in the region. Food manufacturing is another major industry in Lynn as it represents nearly 5% of the base, as compared to the 2% representation in the region. Similarly, employment in the social assistance industry accounts for 5% of Lynn s base but only 2% of that in the region, as shown below. Appendix Table A-4: City of Lynn, MA Economic Development Strategy Employment in Selected Industry Sectors in Lynn to So. Essex WIA (2004) % of Lynn Total So. Essex WIA % of Total Durable Goods MFG 3,743 18.5% 15,119 10.5% Nursing & Residential Care Facilities 1,760 8.7% 6,578 4.6% Ambulatory Health Care Services 1,668 8.3% 8,826 6.1% Hospitals 1,166 5.8% 6,249 4.3% Food Services and Drinking Places 1,129 5.6% 13,877 9.6% Construction 1,052 5.2% 6,567 4.6% Social Assistance 1,035 5.1% 2,884 2.0% Food Manufacturing 931 4.6% 2,118 1.5% Administrative and Support Services 897 4.4% 7,132 5.0% Professional and Technical Services 733 3.6% 7,560 5.3% Food and Beverage Stores 695 3.4% 6,063 4.2% Finance and Insurance 453 2.2% 5,644 3.9% Wholesalers, Durable Goods 429 2.1% 2,545 1.8% General Merchandise Stores 350 1.7% 3,123 2.2% Non-Durable MFG (exc. Food) 336 1.7% 3,273 2.3% Motor Vehicle and Parts Dealers 294 1.5% 3,012 2.1% Health and Personal Care Stores 279 1.4% 1,856 1.3% Repair and Maintenance 274 1.4% 1,362 0.9% Membership Organizations & Associations 271 1.3% 2,485 1.7% Information 266 1.3% 2,956 2.1% Real Estate 250 1.2% 2,182 1.5% Arts, Entertainment, & Recreation 214 1.1% 3,782 2.6% Merchant Wholesalers, Nondurable Goods 176 0.9% 2,444 1.7% Clothing and Clothing Accessories Stores 59 0.3% 2,875 2.0% Subtotal 18,460 91.5% 120,512 83.7% Total (Private Employment) 20,184 100.0% 143,988 100.0% Source: MA DCS & DUA, and RKG Associates, Inc. The region has higher employment representation in most retail and food service sectors, as well as financial, administrative, and professional service sectors, as shown above. This may be attributed to Lynn s location in relation to other areas of the region. RKG Associates, Inc. Page 7

Appendix Table A-5 exhibits the average employment and wages in Lynn for the 2 nd quarter of 2004. Appendix Table A-5: City of Lynn Economic Development Strategy City of Lynn Employment and Wage Report 2004 (2nd quarter) No. of Average Average Establish- Monthly Weekly Description ments Employment Wages Private Employment Goods-Producing Domain 184 6,061 $1,344 Construction 126 1,052 $1,032 23 - Construction 126 1,052 $1,032 Manufacturing 58 5,010 $1,410 31-33 - Manufacturing 58 5,010 $1,410 NONDUR - Non-Durable Goods Manufacturing 23 1,267 $800 Service-Providing Domain 1,183 14,122 $600 Trade, Transportation and Utilities 284 2,980 $585 22 - Utilities 4 132 $999 42 - Wholesale Trade 53 623 $845 44-45 - Retail Trade 193 2,114 $493 48-49 - Transportation and Warehousing 35 189 $577 Information 18 266 $988 51 - Information 18 266 $988 Financial Activities 110 795 $735 52 - Finance and Insurance 53 453 $799 53 - Real Estate and Rental and Leasing 57 342 $649 Professional and Business Services 180 2,172 $783 54 - Professional and Technical Services 111 733 $1,074 56 - Administrative and Waste Services 67 931 $512 Education and Health Services 181 5,701 $607 61 - Educational Services 10 72 $350 62 - Health Care and Social Assistance 171 5,629 $610 Leisure and Hospitality 152 1,359 $302 71 - Arts, Entertainment, and Recreation 16 214 $445 72 - Accommodation and Food Services 136 1,144 $275 Other Services 258 850 $369 81 - Other Services, Ex. Public Admin 258 850 $369 Total, All Industries (PRIVATE) 1,367 20,184 $823 Federal Government 7 360 $1,019 State Government 7 699 $676 Local Government 10 3,294 $928 Private & Government Total 1,391 24,537 $836 Source: MA DCS & DUA and RKG Associates, Inc. 4. Growth Sectors Between 2000 and 2004, Lynn experienced growth in twenty industry sectors that accounted for an increase of nearly 1,900 jobs, as shown in Appendix Table A-6. Professional services employment experienced an increase of nearly 400 jobs during in the last four years, followed by employment growth in the hospitals sector, the administrative and support services sector, the construction industry, to name a few. RKG Associates, Inc. Page 8

Appendix Table A-6: City of Lynn Economic Development Strategy Employment Growth in Top Twenty Industry Sectors (2000-2004) Lynn South Essex WIA Industry Sector Increase in Jobs % Increase Industry Sector Increase in Jobs % Increase Prof. & Tech. Services 399 119% Hospitals 1,071 21% Hospitals 311 36% Construction 1,047 19% Admin. & Support Services 254 40% Food & Beverage Stores 826 16% Construction 195 27% Prof. & Tech. Services 717 10% Nursing & Res.Care Facilities 154 10% Building Materials & Garden Equip. 655 41% Social Assistance 148 17% Miscellaneous MFG 593 183% Amb.Health Care Services 128 8% Amusement, Gambling et al 584 25% Real Estate 75 43% Nursing & Res.Care Facilities 577 10% Private Households 75 74% Machinery MFG 317 10% General Merchandise 51 17% Credit Intermediation & Related Activities 299 12% Miscellaneous Retailers 26 40% Motor Vehicle & Parts Dealers 294 11% Nonstore Retailers 19 27% Personal & Laundry Services 279 16% Gasoline Stations 14 16% Food Services & Drinking Places 257 2% Repair & Maintenance 12 5% Ambulatory Health Care Services 239 3% Transit & Ground Transport 9 12% Real Estate 235 20% Wholesalers, Durable Goods 7 2% Furniture & Home Furnishings Stores 234 31% Membership Org. & Assoc. 7 3% Educational Services 233 9% Educational Services 5 7% Religious, Grantmaking, etc. 199 9% Truck Transportation 4 5% Insurance Carriers & Related Activities 164 8% Performing Arts & Spectator Sports 1 6% Private Households 163 21% Total 1,894 9% Total 8,983 6% Source: MA DCS & DUA, and RKG Associates, Inc. The top twenty growth sectors in the region experienced a gain of nearly 9,000 jobs as shown above, and employment growth in hospitals, construction, food and beverage stores, and professional services sectors were among the highest. The miscellaneous and machinery manufacturing sectors also experienced gains of 900 jobs in the region over the last four years, and it is unknown if Lynn captured any growth in these sectors since the data is suppressed in the smaller geography. Despite the recession in the early 2000s, certain sectors continue to show growth and Lynn has benefited. However, it is unlikely Lynn would capture a large-scale user within the short term except for an end-user whose actions are difficult to quantify. Lynn does have a strong base in the health related industries and this sector is anticipate to grow in conjunction with the aging of the baby-boom generation. Lynn also has a strong manufacturing base such that a strategy of supporting and retaining this sector should be considered, as well as nurturing the growth of other businesses. RKG Associates, Inc. Page 9

B. Demographic and Labor Force Characteristics Population and household statistics are presented in this section, as well as data regarding the characteristics of the labor force in the City and the region. 1. Population and Households Trends and Projections Lynn s population was estimated at 90,400 persons in 2004, which represented a 1.5% increase since 2000. This growth rate was slightly lower than the 2% increase in the region between 2000 and 2004 as shown in Appendix Table B-1. Population in Lynn is forecasted to increase by 1,440 persons over the next five years. This gain indicates a 1.6% growth rate in Lynn, which is slightly lower than 2.2% rate forecasted for the region. Appendix Table B-1 - City of Lynn Economic Development Strategy Population, Households and Median Househols Income Trends and Projections Lynn South Essex WIA 1990 2000 2004 2009 1990 2000 2004 2009 Population 81,245 89,050 90,362 91,803 381,756 404,802 413,022 422,233 # Change -- 7,805 1,312 1,441 -- 23,046 8,220 9,211 % Change -- 9.6% 1.5% 1.6% -- 6.0% 2.0% 2.2% % Racial Population 17% 32% 32% 33% 6% 11% 11% 11% % Hispanic Population 9% 18% 22% 25% 3% 6% 9% 13% Households 31,554 33,511 34,284 35,204 147,117 158,130 162,750 168,232 # Change -- 1,957 773 920 -- 11,013 4,620 5,482 % Change -- 6.2% 2.3% 2.7% -- 7.5% 2.9% 3.4% Median Household Income $28,728 $37,594 $40,261 $45,214 $38,328 $52,320 $56,174 $62,539 # Change -- $8,866 $2,667 $4,953 -- $13,992 $3,854 $6,365 % Change -- 30.9% 7.1% 12.3% -- 36.5% 7.4% 11.3% Source: US Census, Demographics NOW and RKG Associates, Inc. Referring to the previous table, Lynn s racial and Hispanic population represented 32% and 22% of the total population in 2004, which is a higher concentration than indicated in the region. Lynn s minority diversity is also forecasted to increase over the next five years. Median household income was estimated at $40,300 in 2004, representing a 7% increase since 2000. The median household income was estimated at $56,200 in the region, increasing by 7% since 2000. Median incomes in both areas are forecasted to increase over the next five years, and the anticipated growth in Lynn (12.3%) is higher than the region (11.3%). Despite this higher rate of increase, Lynn s median household income is forecasted to be about 28% lower than that for the region in 2009. This income difference can be partially attributed to a higher percentage of low-income housing in Lynn in comparison to the region. RKG Associates, Inc. Page 10

2. Population by Age Figure B-1: The babyboom generation (45 to 54 and 55 to 64) experienced most of the population growth in Lynn, between 2000 and 2004, followed by those in the 15 to 24 age cohort. Population declines were experienced in the other age groups. Over the next five years, continued gains are forecasted in the same three age brackets that increased over the last four years. In 2009, the elderly population (65 and up) will represent 13% of total population while those under 15 would account for 21% of Lynn s population. City of Lynn - Trends in Population by Age Groups 65 & up 55 to 64 45 to 54 2009 35 to 44 2004 2000 25 to 34 1990 15 to 24 Under 15 0% 5% 10% 15% 20% 25% Source: US Census, Demographics NOW & RKG Associates, Inc. Figure B-2: A similar trend in the growth of babyboomers (45 to 54 and 55 to-64) and the population aged 15 to 24 occurred in the region between 2000 and 2004, while declines were evident in the other age groups. Population projections indicate continued growth in the same three age sectors over the next five years. In 2009, the elderly population will represent 15% of the region s population, while persons under age 15 will account for 18% of the population. South Essex WIA - Trends in Population by Age Groups 65 & up 55 to 64 45 to 54 2009 35 to 44 2004 2000 25 to 34 1990 15 to 24 Under 15 0% 5% 10% 15% 20% 25% Source: US Census, Demographics NOW & RKG Associates, Inc. Lynn and the region will lose population in the 25 to 44 age groups and those under 15 over the next five years, but will gain population at the younger (15 to 24) and in the older cohorts (45 and older). The 55 to 64 age group in Lynn and the region will experience the most growth over the next five years. RKG Associates, Inc. Page 11

3. Households by Income Figure B-3: Households with incomes of $75,000 or more increased between 2000 and 2004, while households in the lower income brackets decreased. A similar trend is forecasted over the next five years as households earning $75,000 or more are projected to increase by more than 2,100 households. Despite this increase, more than 30% of Lynn s households are forecasted to earn incomes of less than $25,000 in 2009. City of Lynn - Trends in Households by Income Cohorts $100,000 and up $75,000 to $99,999 2009 2004 $50,000 to $74,999 2000 1990 $25,000 to $49,999 Less than $25,000 0% 10% 20% 30% 40% 50% Source: US Census, Demographics NOW & RKG Associates, Inc. Figure B-4: Households in both income brackets South Essex WIA - Trends in Households by Income earning $75,000 or more Cohorts also increased between 2000 and 2004, similar to $100,000 and up Lynn, while declines were evident in the lower income $75,000 to $99,999 groups. Five-year forecasts indicate that households earning $100,000 or more $50,000 to $74,999 in the region will increase by more than 10,150, and $25,000 to $49,999 this income cohort will account for 27% of the households in the region. Less than $25,000 Households earning incomes of less than $25,000 will represent about 20% of households in Source: US Census, Demographics NOW & RKG Associates, Inc. the region in 2009, and more than 32% of the region s households earning less than $25,000 will be in Lynn. 2009 2004 2000 1990 0% 10% 20% 30% 40% RKG Associates, Inc. Page 12

4. Educational Attainment Figure B-5: Nearly 47% of Lynn s population had attained a high-school education or higher, according to the US Census. This factor is lower than the 60% indicated for the region. Despite Lynn having a lower educational attainment level, approximately 55% of the businesses surveyed in conjunction with the Economic Development Strategy, indicated good labor force characteristics within the City. Graduate or Profession Degree Associate & Bachelor's Degree College-No Degree High School Graduate Source: US Census & RKG Associates, Inc. Educational Attainment (2000) 0% 5% 10% 15% 20% 25% % of Population So. Essex WIA City of Lynn 5. Employment in Major Industries Figure B-6: Most of Lynn s resident workers in 2000 were employed in the retail trade, manufacturing, health services and other services sector, according to the US Census. A majority of the region s resident labor force were similarly employed in these four sectors but to a lower degree than in Lynn with the exception of other services. The region also had a higher concentration in the finance and educational services sectors as well as in the arts and entertainment sector. Employment of Resident Workers in Major Industries (2000) Retail trade Manufacturing Health services Other Services Trans., Comm. & Util. Educational services Finance, Insur. & RE Construction Public administration Wholesale trade Arts, Entertainment et al Source: US Census & RKG Associates, Inc. 0% 5% 10% 15% 20% 25% % of Resident Workers So. Essex WIA City of Lynn 6. Commuting Patterns Commuting patterns of the resident workers in Lynn indicated that 71% of the resident workers in 2000 had jobs outside of Lynn, and the remaining 29% had jobs within the City. In comparison, 56% of the local jobs in Lynn were held by persons who commuted into the City from outside. Selected commuting data is exhibited in Appendix Table B-2. The RKG Associates, Inc. Page 13

middle column identifies the percentage of local Lynn s resident workers and the right column identifies the percentage of local jobs in the City. The left column identifies the community into which a Lynn resident commuted to work, or the community from which persons commuted for work in Lynn. For instance, 14% of the resident workers in Lynn commuted to Boston for work; but persons that commuted to Lynn from Boston held 2% of the jobs in Lynn. Appendix Table B-2: City of Lynn: Economic Development Strategy Commuting Patterns of Resident Workers & Holders of Local Jobs Lynn Resident Workers Lynn Local Jobs Total in Lynn 38,360 25,542 In Lynn 29% 44% Outside Lynn 71% 56% Boston 14% 2% Salem 6% 5% Peabody 6% 4% Danvers 4% 2% Saugus 3% 3% Beverly 3% 2% Cambridge 2% 0% Swampscott 2% 3% Andover 2% 0% Woburn 2% 0% Chelsea 1% 1% Marblehead 1% 2% Lawrence 1% 1% Haverhill 1% 1% Malden 1% 1% Note: Bold Communities in South Essex WIA Source: US Census and RKG Associates, Inc. 7. Unemployment Rate and Labor Force Trends Figure B-7: Lynn s unemployment rate declined to 6.6% in 2004, suggesting improving economic conditions from 2003 when the rate peaked at 7.6%. In 2000, Lynn s employment rate was 3.2% and the lowest rate during the fifteen-year period. Lynn s highest unemployment rate was 10.8% in 1992 at the end of the recession of the early 1990s. Historically, Lynn s unemployment rate is about 1% higher than indicated statewide or in the region. Unemployment Rate Trends (1990-2004) 12% City of Lynn 10% So. Essex WIA 8% Massachusetts 6% 4% 2% 0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: MA DCS & DUA and RKG Associates, Inc. RKG Associates, Inc. Page 14

Between 1990 and 2004, Lynn s labor force increased by 7%, while the number of unemployed persons declined by nearly 6%, as shown below. However, the number of unemployed persons in Lynn more than doubled since 2000, such that in 2004 Lynn had nearly 2,800 persons unemployed or 6.6% of the labor force. Appendix Table B-3: City of Lynn Economic Development Strategy Trends in Labor Force and Unemployment (1990-2004) Year Labor force City of Lynn Employment Unemployment Unemployment Rate Labor force South Essex WIA Employment Unemployment Unemployment Rate 1990 38,927 36,000 2,927 7.5% 206,521 194,266 12,255 5.9% 1991 37,862 33,875 3,987 10.5% 202,282 184,739 17,543 8.7% 1992 37,470 33,429 4,041 10.8% 201,971 184,263 17,708 8.8% 1993 36,783 33,991 2,792 7.6% 201,522 188,419 13,103 6.5% 1994 36,747 34,134 2,613 7.1% 202,178 190,811 11,367 5.6% 1995 37,511 35,244 2,267 6.0% 200,801 190,952 9,849 4.9% 1996 37,756 35,866 1,890 5.0% 201,993 194,139 7,854 3.9% 1997 39,018 37,154 1,864 4.8% 207,738 200,075 7,663 3.7% 1998 39,207 37,630 1,577 4.0% 209,162 202,431 6,731 3.2% 1999 39,252 37,654 1,598 4.1% 209,033 202,936 6,097 2.9% 2000 41,138 39,826 1,312 3.2% 208,418 203,492 4,926 2.4% 2001 41,986 40,152 1,834 4.4% 218,355 210,814 7,541 3.5% 2002 42,779 40,091 2,688 6.3% 222,377 211,360 11,016 5.0% 2003 42,251 39,031 3,220 7.6% 218,130 205,774 12,356 5.7% 2004 41,787 39,030 2,757 6.6% 216,715 205,769 10,946 5.1% # change 90-04 2,860 3,030 (171) -0.9% 10,194 11,503 (1,309) -0.9% 00-04 649 (796) 1,445 3.4% 8,297 2,277 6,020 2.7% % change 90-04 7.3% 8.4% -5.8% 4.9% 5.9% -10.7% 00-04 1.6% -2.0% 110.1% 4.0% 1.1% 122.2% Source: MA DCS & DUA and RKG Associates, Inc. Referring to the previous table, the number of unemployed persons in the region more than doubled between 2000 and 2004, such that nearly 11,000 persons were unemployed in 2004. The number of unemployed persons in Lynn represented about 25% of the available regional labor force in 2004. C. Development Potential for Additional Retail and Service in Lynn, MA The estimated demand for consumer retail goods and services, by selected merchandise line, is nearly $438.0 million from the residents of Lynn in 2004. An accompanying spreadsheet (Appendix Table C-6) at the end of this section, presents the estimated consumer demand by individual merchandise line. A summary of that demand for specific store types is presented in the following table: RKG Associates, Inc. Page 15

Appendix Table C-1 Estimated Consumer Demand for 2004 In $000 s for Lynn, MA Residents Store Type Est Demand Food, Grocery and Dining $232,489 Drug Store and Personal Items $41,047 Household Goods and Furniture $43,333 Apparel $70,916 Electronics $18,244 Specialty Retail $31,944 TOTAL $437,973 Source: RKG Associates, Inc. The estimated sales at stores in Lynn, by the above referenced store types, for 2004, is slightly more than $282.0 million as shown in Appendix Table C-2. Appendix Table C-2 Estimated Sales by Store Type for 2004 In $000 s for Lynn, MA Residents Store Type Est Sales Food, Grocery and Dining $161,689 Drug Store and Personal Items $44,287 Household Goods and Furniture $16,764 Apparel $23,187 Electronics $11,974 Specialty Retail $24,271 TOTAL $282,172 Source: Census of Retail Trade and RKG Associates, Inc. When comparing the data in the two previous tables, an indication of sales leakage of approximately $155.8 million is evident. Sales leakage refers to the local consumer demand for goods and services that is not being captured by the local merchants, and is exhibited by story type in Appendix Table C-3. Appendix Table C-3 Estimated Sales Leakage by Store Type for 2004 In $000 s for Lynn, MA Residents Store Type Est Leakage Food, Grocery and Dining $70,800 Drug Store and Personal Items -$3,240 Household Goods and Furniture $26,569 Apparel $47,729 Electronics $6,271 Specialty Retail $7,672 TOTAL $155,801 Source: RKG Associates, Inc. Additional store and expanded retail selection in Lynn, coupled with marketing and promotional efforts could serve to recapture a portion of this sales leakage. It is not possible to recapture 100% of sales leakage as consumers will continue to purchase items away from home, while at work or through other means such as the internet and catalog sales. This analysis take as a conservative approach in estimating that it may be possible to recapture between 35% and 45% of this sales leakage, given new development or redevelopment potential and future marketing. This potential is summarized in the following table. RKG Associates, Inc. Page 16

Appendix Table C-4 Estimated Recaptured Sales Leakage by Store Type In $000 s for Lynn, MA Store Type Recapture Of 35% Recapture Of 45% Food, Grocery and Dining $24,780 $31,860 Drug Store and Personal Items NA NA Household Goods and Furniture $9,299 $11,956 Apparel $16,705 $21,478 Electronics $2,195 $2,822 Specialty Retail $2,685 $3,453 Source : RKG Associates, Inc. TOTAL $55,665 $71,569 Utilizing a conservative sales estimate of $300 per square foot, the above referenced recapture of sales leakage could result in the additional, supportable development of between 185,000 SF and 240,000 SF in Lynn, as presented in the following table. Appendix Table C-5 Est. Supportable New Retail Development from Recaptured Sales Leakage by Store Type [1] Story Type Recapture Of 35% Recapture Of 45% Food, Grocery and Dining 82,601 106,201 Drug Store and Personal Items NA NA Household Goods and Furniture 30,998 39,854 Apparel 55,683 71,593 Electronics 7,316 9,406 Specialty Retail 8,951 11,509 TOTAL 185,548 238,562 [1] Factored at $300/SF Source: RKG Associates, Inc. RKG Associates, Inc. Page 17

Appendix Table C- 6 : Lynn, MA - Estimated Sales Demand/Actual By Merchandise Line (2004) Est. Demand Est. Demand Est. Sales Est. Leakage Est. Leakage Est. Percent Recapture Sales $000s Pot. Retail SF ($300/SF) Merchandise Line Per Capita Total ($000s) Total ($000s) Total ($000s) Per Capita Sales Leakage 35% 45% 35% 45% FOOD AND GROCERY $ 2,876 $ 232,489 $ 161,689 $ 70,800 $ 876 30.5% $ 24,780 $ 31,860 82,601 106,201 Food $ 1,766 $ 142,728 $ 112,025 $ 30,704 $ 380 21.5% Food Away From Home $ 994 $ 80,366 $ 41,221 $ 39,144 $ 484 48.7% Alcoholic Beverages $ 116 $ 9,395 $ 8,443 $ 952 $ 12 10.1% MISC. PERSONAL ITEMS $ 508 $ 41,047 $ 44,287 -$ 3,240 -$ 40-7.9% Drugs, Medical Equipment $ 235 $ 19,030 $ 22,382 -$ 3,352 -$ 41-17.6% Personal Care Services, Cosmetics, etc. $ 272 $ 22,016 $ 21,905 $ 111 $ 1 0.5% HOUSEHOLD EQUIP.& SERVICES $ 536 $ 43,333 $ 16,764 $ 26,569 $ 329 61.3% $ 9,299 $ 11,956 30,998 39,854 Furniture $ 227 $ 18,321 $ 6,193 $ 12,128 $ 150 66.2% Floor Coverings $ 80 $ 6,446 $ 1,511 $ 4,934 $ 61 76.6% Appliances (Major & Small) $ 115 $ 9,275 $ 3,852 $ 5,423 $ 67 58.5% Misc. Hshld Equipment $ 115 $ 9,292 $ 5,208 $ 4,084 $ 51 44.0% APPAREL $ 877 $ 70,916 $ 23,187 $ 47,729 $ 590 67.3% $ 16,705 $ 21,478 55,683 71,593 Women's Apparel 16+ $ 362 $ 29,244 $ 9,322 $ 19,922 $ 246 68.1% Men's Apparel 16+ $ 199 $ 16,107 $ 5,069 $ 11,038 $ 137 68.5% Girl's Apparel 2 to 15 $ 41 $ 3,285 $ 959 $ 2,326 $ 29 70.8% Boy's Apparel 2 to 15 $ 50 $ 4,077 $ 1,193 $ 2,884 $ 36 70.7% Children's Apparel (<Age 2) $ 42 $ 3,359 $ 1,097 $ 2,261 $ 28 67.3% Footwear $ 154 $ 12,419 $ 3,877 $ 8,543 $ 106 68.8% Other Apparel, Acc., Svcs. $ 30 $ 2,424 $ 1,670 $ 754 $ 9 31.1% ELECTRONICS $ 226 $ 18,244 $ 11,974 $ 6,271 $ 78 34.4% $ 2,195 $ 2,822 7,316 9,406 TV, Radios, Sound Equipment $ 62 $ 5,012 $ 2,589 $ 2,423 $ 30 48.3% Video, CDs $ 98 $ 7,928 $ 6,149 $ 1,779 $ 22 22.4% Computers $ 50 $ 4,028 $ 2,751 $ 1,277 $ 16 31.7% Other electronics $ 16 $ 1,277 $ 485 $ 792 $ 10 62.0% MISCELLANEOUS $ 395 $ 31,944 $ 24,271 $ 7,672 $ 95 24.0% $ 2,685 $ 3,453 8,951 11,509 Reading Materials $ 139 $ 11,237 $ 8,090 $ 3,146 $ 39 28.0% Sporting Goods $ 57 $ 4,612 $ 3,236 $ 1,376 $ 17 29.8% Camera and Photo $ 42 $ 3,409 $ 4,531 -$ 1,121 -$ 14-32.9% Jewelry $ 59 $ 4,748 $ 3,074 $ 1,674 $ 21 35.3% Toys $ 98 $ 7,938 $ 5,340 $ 2,598 $ 32 32.7% TOTAL $ 5,418 $ 437,973 $ 282,172 $ 155,801 $ 1,927 35.6% $ 55,665 $ 71,569 185,548 238,562 Source: NDS/UDS Data Services, U.S. Census of Retail Trade and RKG Associates, Inc. RKG Associates, Inc. Page 18

D. Regional Real Estate Market Conditions Regional conditions in the office, research and development (R & D), and industrial markets are reviewed in this section. The source is a biannual survey of the Greater Boston market prepared by Spaulding and Slye Collier International (S & S). The market includes the Cities of Boston and Cambridge and seven suburban submarkets. Lynn is geographically within the North suburban market however, S & S does not track buildings in Lynn, although S & S does survey buildings in other North Shore communities such as Beverly, Danvers and Peabody. This finding is likely attributed to Lynn s location in comparison to these other communities, since they have modern business parks such as Centennial Park in Peabody, or conversions of major industrial complexes such as the Cummings Center in Beverly. Although Lynn is not included in the S & S survey, this regional review is germane to the economic development strategy since Lynn would compete for new major economic opportunities with these properties identified by S & S. It should also be added that S & S does not survey owner-occupied properties but those that are renter-occupied or investorowned. 1. Office Market Regional conditions in the office sector continue to be soft, while recovery from the recession of 2001 has been slow, and rents in 2004 are lower in many cases than in prior years. The Greater Boston market has more than 152 million square feet (m SF) of office properties, as shown in Appendix Table D-1, including 79m SF in the suburbs. The North submarket has 11.7m SF of office properties including 3.7m SF within selected towns of the Lynn region. This indicates that the Lynn region has 31% of the office supply in the North submarket. As shown below, the Lynn region has an availability rate of 29%, which is higher than indicated for the suburbs (26%) or Greater Boston (23%). Averaging asking price in the Lynn region is also lower than in the other market areas. Appendix Table D-1: Office Market Characteristics (Winter 2005) Geography Supply [1] Available [1] % Available Absorption [1,2] AVG. Asking Rent (gross) Greater Boston 152.10 34.52 23% 1.75 $23.43 Suburbs 79.14 20.58 26% 1.37 $18.57 North 11.69 3.05 26% (0.11) $17.78 Lynn Region 3.67 1.07 29% (0.09) $16.51 Beverly 2.02 0.74 37% (0.10) $16.81 Danvers 1.01 0.17 16% 0.05 $14.80 Lynnfield 0.20 0.04 22% (0.01) $16.50 Peabody 0.40 0.10 25% (0.01) $16.55 Saugus 0.05 0.02 52% (0.02) $19.00 [1] In millions of SF [2] Change in occupied space from prior year Source: Spaulding & Slye Office Report & RKG Associates, Inc. Absorption of office space in 2004 was negative in the Lynn region and the North submarket, as shown above. In fact, the Lynn region experienced nearly 82% of the negative absorption in the North submarket last year, with most of it occurring in Beverly. In comparison, the suburban market and the Greater Boston market experienced positive absorption in 2004, as evident by an increase of 1.4m SF and 1.8m SF in occupied office space, respectively. RKG Associates, Inc. Page 19

However, these are fairly weak figures in comparison to the available supply, and would suggest a fifteen to twenty-year supply of available office space within Greater Boston. 2. R & D Market The Greater Boston market has more than 49.3m SF of R & D space and 31% of it is available, as shown in Appendix Table D-2. The North submarket has 6.7m SF of R & D buildings, and the availability rate is 21%, lower than indicated for the suburbs (33%). The Lynn region has less than 25% of the North submarket supply, and the availability rate is 14%, better than indicated in the other geographies. The R& D supply in the region is fairly evenly divided between Beverly, Danvers and Peabody. Similar to the office market, asking average rental rates in the Lynn region is lower than indicated for the Greater Boston and suburban market. Appendix Table D-2: R & D Market Characteristics (Winter 2005) Geography Supply [1] Available [1] % Available Absorption [1, 2] AVG. Asking Rent (net) Greater Boston 49.36 15.54 31% (0.22) $9.40 Suburbs 45.55 14.93 33% (0.21) $9.35 North 6.67 1.43 21% 0.02 $8.72 Lynn Region 1.63 0.23 14% 0.01 $8.60 Beverly 0.46 0.02 5% 0.05 $12.45 Danvers 0.55 0.06 11% 0.00 -- Peabody 0.62 0.15 24% (0.04) $8.00 [1] In millions of SF [2] Change in occupied space from prior year Source: Spaulding & Slye Office Report & RKG Associates, Inc. 3. Industrial Market The Greater Boston industrial market., as surveyed by S & S, has more than 60m SF and 23% is available, as shown in Appendix Table D-3. The North submarket has 10.5m SF or 18% of the suburban market, and the availability rate is 16% lower than indicated for Greater Boston. The Lynn region has only 10% of the North submarket, but the availability rate is higher at 25%. Interestingly, the average asking rent in the Lynn region is higher than indicated in the Greater Boston area. Absorption for industrial space was negative in 2004 in the Greater Boston areas and the suburban markets, including the North. However, absorption of industrial space in Peabody was positive, making absorption in the Lynn region also positive. Appendix Table D-3: Industrial Market Characteristics (Winter 2005) Geography Supply [1] Available [1] % Available Absorption [1,2] AVG. Asking Rent (net) Greater Boston 60.17 13.76 23% (1.74) 5.98 Suburbs 59.80 13.74 23% (1.77) 5.95 North 10.47 1.71 16% (0.28) 6.95 Lynn Region 1.47 0.37 25% 0.10 $6.19 Beverly 0.04 0.00 0% 0.00 -- Danvers 0.76 0.20 26% (0.02) $5.50 Peabody 0.68 0.17 25% 0.12 $7.02 [1] In millions of SF [2] Change in occupied space from prior year Source: Spaulding & Slye Office Report & RKG Associates, Inc. RKG Associates, Inc. Page 20

The region has a significant supply of available space in all market sectors, and most of these properties are more modern than those available in Lynn. This supply would likely limit new construction in the near future with the exception of end-users. In addition, the Commonwealth recently announced that the Blue-Line extension to Lynn is on the 20-year transportation plan. Linking Lynn to downtown Boston via the subway system should improve the City s location as an office market destination in the future. E. Commercial and Industrial Availabilities in Lynn RKG prepared a listing of available commercial and industrial properties in Lynn from a variety of sources. One was a review of commercial and industrial property web site listings, including the one prepared by Lynn s Office of Economic and Community Development. Field observations were also utilized as well as the surveys of Lynn businesses preformed in conjunction with this project. In short, a supply of nearly 1m SF was vacant and/or available in Lynn either for-sale or for-rent, as shown in Appendix Table E-1. Listings of the individual properties are exhibited in Appendix Table E-2. Approximately 0.63m SF of industrial buildings were available in Lynn, including 0.29m SF in the Lynnway economic opportunity zone, 0.21m SF in the downtown zone, and 0.11m SF in the Central Lynn zone. Available office space represented another 24% of the available properties and nearly 75% of the office space is in the downtown. Reportedly, a portion of this available office space in the downtown was reoccupied, so the figures below may be slightly overstated. Commercial spaces including street level retail space make up the remaining 10% of the available properties, and most of the available commercial spaces are also in the downtown, as shown below. Appendix Table E-1: Building Availabilities in Lynn by Use & Economic Opportunity Zones (March 2005) Industrial Office Comm. Total Total 629,739 228,997 96,868 955,604 Lynnway 289,290 40,000 30,500 359,790 Downtown 214,821 172,047 54,645 441,513 Broad St/MBTA 14,000 4,000 0 18,000 Central Lynn 111,628 12,000 8,256 131,884 GE/Western Ave. 0 0 0 0 Boston/Western 0 950 3,467 4,417 Lower Broadway 0 0 0 0 Hospital 0 0 0 0 Source: RKG Associates, Inc. Pricing for space in Lynn appears competitive with the region, as industrial space was quoted in the $4 to $6/SF range, and office and commercial space in the $10/SF to $20/SF range. The location, size, level of finish, utilities included, and amenities such as parking, can influence pricing. Lynn s downtown is currently undergoing revitalization due in part to a recent zoning change that allowed owners of existing buildings to convert the upper floors to residential use without providing on-site parking. The impact of this has created approximately 200 new RKG Associates, Inc. Page 21

housing units that are under-development or recently completed. Changing demographics within the downtown will eventually create new business opportunities for retail, restaurants and professional service. The City also recently completed a Lynn Downtown Workshop that identified short and long-term opportunities, and some of them are being achieved. Appendix Table E-4: Building Availabilities in Lynn (March 2005) Eco. Opp Zone Use Bldg SF Address Boston/Western Comm. 2,467 61 Franklin St Boston/Western Comm. 1,000 578 Chestnut St Boston/Western Office 950 583 Chestnut St. Central Lynn Comm. 6,000 189-191 N. Common Central Lynn Comm. 2,256 29 Neptune Central Lynn Industrial 64,628 40 Federal St (GE Factory-Future) Central Lynn Industrial 47,000 Carr Leather Central Lynn Office 12,000 189-191 N. Common Diamond Dist Industrial 14,000 82 Sanderson Ave Diamond Dist Office 4,000 82 Sanderson Ave Downtown Comm. 8,700 80 Exchange Downtown Comm. 4,000 33 Exchange St Downtown Comm. 4,000 Central SQ/Mayo Downtown Comm. 6,000 Mt Vernon St under T Downtown Comm. 3,000 Fabens Building Downtown Comm. 5,000 Scattered on Union Downtown Comm. 5,000 25-27 Central/Olsen Downtown Comm. 5,000 7-21 Central/Mayo Downtown Comm. 5,000 Keith Building Downtown Comm. 1,920 125 Oxford St. Downtown Comm. 5,000 Goldblock Downtown Comm. 2,025 191 Oxford St Downtown Industrial 100,000 C Bain Downtown Industrial 53,500 20-24 Mt. Vernon St Downtown Industrial 50,000 Prime Bldg (537 Wash) Downtown Industrial 11,321 212 Broad St Downtown Office 5,000 85 Exchange (Edison) Downtown Office 10,000 614 Washington St Downtown Office 2,500 441-443 Union St Downtown Office 38,747 112 Market St (Eastern Bank) Downtown Office 105,000 270-280 Union St (Eastern Bank) Downtown Office 1,800 1 Market St Downtown Office 9,000 87 Oxford (Bank) Lynnway Retail 27,500 395 Lynnway Lynnway Retail 3,000 364 Lynnway Lynnway Industrial 77,665 159 Pleasant St Lynnway Industrial 100,000 Clocktower Lynnway Industrial 6,700 18 Alley St Lynnway Industrial 49,173 175 Alley St Lynnway Industrial 7,752 76 Marine Blvd Lynnway Industrial 48,000 420 Lynnway Lynnway Office 40,000 Clocktower Total 955,604 Source: Lynn Economic & Community Development website & RKG Associates, Inc. RKG Associates, Inc. Page 22

F. Results of a Survey of Lynn Businesses and Major Employers RKG Associates, Inc. Page 23

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G. Lynn s Residential Median Values and Chapter 40-B Housing Figure G-1: Median values for single-family homes was $292,000 in March 2005, reflecting a 21% increase in the last year. The median condominium value was $174,900 in March 2005, which was 4% higher than the prior years. Lynn s median values have increased steadily over the last 10 or so years, but single-family value appreciated at a faster pace after 2000 such that the difference in price between single family and condominiums was much greater in 2005 than in prior years. $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 MARCH City of Lynn, MA: Trends in Residential Values $0 1988 1989 1990 Single-Family Condominium Source: Warren Information Services & RKG Associates, inc. 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Lynn median value for residential properties in March 2005 was lower than indicated in select communities within the region as shown below. In addition, values for both singlefamily homes and condominiums in Lynn showed continued appreciation in the last year, while median values in some communities were lower in March 2004 than in March 2003. In short, median residential values in Lynn are competitive and more affordable than in the region. Appendix Table G-1: City of Lynn Economic Development Strategy Median Residential Values in Select Communities in the Region (March, 2005) City/Town Single Family Change From 3/04 Condominium Change From 3/04 Lynn $292,000 21% $174,900 4% Beverly $348,250-4% $301,000-11% Danvers $575,000 72% $260,250-8% Lynnfield $451,000-9% N/A N/A Nahant $635,000 N/A N/A N/A Peabody $355,000 0% $208,500-17% Salem $350,000 10% $274,500 10% Saugus $377,000 6% $235,000 N/A Swampscott $430,000 19% $256,500-1% Source: Warren Information Services & RKG Associates, Inc. Chapter 40-B and Affordable Housing: Lynn had 4,479 Chapter 40B subsidized housing units, according to a May 2, 2005 subsidized housing inventory prepared by the Massachusetts Department of Housing and Community Development (DHCD). This equated to 13.0% of Lynn s year round housing supply, and indicated that Lynn exceeded the Commonwealth s goal of 10% under the provisions of Chapter 40B. It was reported in the Lynn Housing Market Study dated July 29, 2003, that there were also 2,630 households RKG Associates, Inc. Page 26

that leased housing in Lynn with rental vouchers or Section 8 certificates. These households in turn equate to another 7.6% of the non-seasonal housing units in Lynn. In total, more than 20% of the housing in Lynn would be considered affordable to low-income households. A review of Project Based Chapter 40B units in Table 17 on page 63 in the Lynn Housing Market Study indicate that there are six projects in downtown Lynn whose use restriction may expire between 2010 and 2014. These developments are identified in Appendix Table G-2. Exploring the conversion of these properties to market rate housing should be considered as part of the economic development strategy, since the City has exceeded the Commonwealth s goal of 10%. The market rate supply of housing would have to increase by approximately 10,000 units for the current supply of Chapter 40B to represent 10% of the housing. Alternatively, if the Chapter 40B supply were to be reduced by 1,000 units the percentage would decline to 10%. Appendix Table G-2: Selected Chapter 40-B Developments in Downtown Lynn Project Address Total Elderly Non-Elderly Exp. Year Owner Rolfe House 7 Willow St 70 70 0 2010 Rolfe House LP C/O SHP Mgmt. Fabens Building 312-332 Union St 37 36 1 2011 Fabens C/O WINN Harbor Loft 7 Liberty & 678 Wash. 358 210 148 2012 EDIC (Land) Silbseee Towers 67 Silsbee 146 145 1 2014 Silsbee Tower Assoc. Pinkham Apts 75 Silsbee St 28 0 28 Unk. Greater Lynn SN Assoc Willow Apt Trust 19 Willow St 44 44 0 EUR Willow Apt. Assoc. While the supply of Chapter 40B units represent 13% of Lynn s housing stock, the real estate taxes generated from these properties accounts for 3.3% of the residential real estate taxes. This is due in part to the tax-exempt status of the various non-profits that own these properties. Exploring ways for these tax-exempt properties to contribute to the City s tax base is recommended as a way to offset municipal service costs. H. Lynn Tax Base and Trends Lynn s tax base has been adversely impact by the changes in the City s employment base. In FY-2005, residential assessment totaled $5.55 billion and accounted for nearly 89% of the taxable assessment, as shown in Appendix Table H-1. Residential properties also generated about $56.5 million in real estate taxes or 79% of the tax levy in the City. As shown below, commercial properties represented about 7% of taxable assessment and generated 13% of the tax levy. Industrial properties contribute another 2.5% of assessment and nearly 5% of real estate taxes. Appendix Table H-1: Lynn's Tax Base in FY-2005 Assessment % of Taxable RE TAXES [1] % of Taxes Residential $5,550,211,903 88.8% $56,501,157 78.8% Commercial $440,961,667 7.1% $9,560,049 13.3% Industrial $156,419,200 2.5% $3,391,168 4.7% Personalty $101,672,150 1.6% $2,204,252 3.1% Taxable $6,249,264,920 100.0% $71,656,627 100.0% Tax Exempt $624,788,830 Total $6,874,053,750 [1] Residential @ $10.18/1000 and Non-Residential @ $21.68/1000 Source: Lynn's Assessor's Office and RIKG Associates, Inc. RKG Associates, Inc. Page 27

In FY-1985, residential assessment represented about 75% of total assessment, while commercial properties accounted for another 12%, as shown in Appendix Table H-2. Personalty (personal property) also accounted for 4% of total assessment in 1985, in comparison to less than 2% in 2005. Appendix Table H-2: City of Lynn, MA Trends in Assessments by Type 1985 2005 Property Type Assessed Value % of Total Assessed Value % of Total % Change Compounded % Change Residential $1,140,346,900 74.9% $5,550,211,903 88.8% 387% 8.2% Commercial $174,566,900 11.5% $440,961,667 7.1% 153% 4.7% Industrial $145,763,400 9.6% $156,419,200 2.5% 7% 0.4% Personalty $61,605,695 4.0% $101,672,150 1.6% 65% 2.5% Total $1,522,282,895 100.0% $6,249,264,920 100.0% 311% 7.3% Source: MA DLS, Lynn's Assessor Office & RKG Associates, Inc. Referring to the previous table, residential values increased by 387% between 1985 and 2005. This also equated to a compounded rate of 8.2% per year. Commercial properties increased at a much lower rate over the last twenty years, as shown above, while industrial properties experienced hardly any appreciation in value between 1985 and 2005. Personal property experienced 2.5% compounded increase in value. By way of comparison, the Consumer Price Index increased by 100% during this period, or a compounded annual rate of 3.5%. Figure H-1: Assessed values in Lynn increased from $1.5 billion in 1985 to $3.4 billion in 1991 and 1992 (127%), and then declined to $2.27 billion (- 33%) in 1997. In 2002 assessed values increased to a new high level of $3.8 billion (67%), and set new high levels in the subsequent years, including $6.25 billion in 2005. Most if not all the increase can be attributed to the residential portion of the tax base, which represented about 89% of taxable assessment in 2005. Billions $7 $6 $5 $4 $3 $2 $1 $0 1985 City of Lynn, MA Trends in Assessments (FY:1985-2005) 1987 Personalty Industrial Commercial Residential 1989 1991 1993 1995 1997 1999 2001 2003 2005 RKG Associates, Inc. Page 28

I. Lynn s Economic Opportunity Zones RKG identified eight economic opportunity zones within Lynn where the focus of future economic development would like be concentrated. Within these zones, nearly all of Lynn s commercial and industrial properties exist. These zones encompass about 1,610 acres representing 18% of the City s land area, and generate about 38% of the real property taxes in the City. There are nearly 12.2m SF of commercial and industrial building area, and nearly 1.0m SF is available or vacant. As shown below, 557 acres in the economic opportunity zones are residential and improved with 20.5m SF of building area, which equates to about 32% of the total residential building area in the City. However, the assessed values of residential properties in the economic development zones represent only 27% of the City s residential assessment, and average residential values in the economic zones ($74/SF) are 15% lower than the citywide standard ($87/SF). This lower value may also be attributed to a higher density (FAR) of residential properties in the economic opportunity zones (84%) versus the citywide standard (28%). Appendix Table I-1: Assessment Summary of the City of Lynn and the Economic Opportunity Zones City of Lynn Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR [1] Residential 5,279 63,910,862 $5,550,211,903 $56,501,157 $87 28% Commercial 441 7,254,460 $440,961,667 $9,560,049 $61 38% Industrial 470 6,226,448 $156,419,200 $3,391,168 $25 30% Tax-Exempt 2,811 7,655,841 $624,788,830 $0 $82 6% Total 9,001 85,047,611 $6,772,381,600 $69,452,374 $80 22% Economic Opportunity Zones Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR [1] Residential 557 20,486,778 $1,517,584,200 $15,449,007 $74 84% Commercial 329 6,072,202 $362,985,600 $7,869,528 $60 42% Industrial 411 6,159,506 $147,572,700 $3,199,376 $24 34% Tax-Exempt 311 5,061,511 $323,135,000 $0 $64 37% Total 1,608 37,779,997 $2,351,277,500 $26,517,911 $62 54% Economic Opportunity Zones as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR [1] Residential 11% 32% 27% 27% -15% 204% Commercial 75% 84% 82% 82% -2% 12% Industrial 88% 99% 94% 94% -5% 13% Tax-Exempt 11% 66% 52% -- -22% 497% Total 18% 44% 35% 38% -22% 149% [1] FAR-Floor area ratio is an indication of density (the higher the % the more built-out) Source: Lynn's Assessors Office and RKG Associates, inc. The commercial properties in the economic opportunity zones consist of 329 acres and more than 6.0m SF of building area, and have an assessed value of $363.0 million. Commercial properties in the economic opportunity zones represent 75% of the city s commercial land area, and 85% of the city s commercial building area, and 82% of the City s commercial assessment and real estate taxes. The average commercial assessed value per SF in the opportunity zones is 2% lower than the citywide standard, and density or FAR is about 12% higher. RKG Associates, Inc. Page 29

Industrial properties in the economic opportunity zones consist of 411 acres, and 6.2m SF of building area, and have an assessed value of $147.6 million. Industrial properties in these eight zones represent 88% of the industrial land area in the City, and 99% of the industrial building area. The industrial assessment in the eight zones and the real estate taxes generated from industrial properties represent 94% of the citywide industrial tax levy. The economic opportunity zones contain more than 310 acres of properties owned by taxexempt entities including the City of Lynn, the Commonwealth, churches and religious organizations and non-profits entities. This land is improved with 5.5 million SF of building area that has an assessed value of $202.9 million although real property taxes are not generated from these properties. These properties contain nearly two-thirds of the taxexempt building area in the City. Appendix Table I-2: Assessment Summary of the Economic Opportunity Zones Economic Opp. Zones Acres Gross Bldg SF Total Assessment RE TAX Assmt/SF FAR Downtown 168 5,482,870 $282,518,400 $3,426,080 $52 75% Central Lynn 365 11,296,815 $742,537,700 $6,860,142 $66 71% Lynnway 370 3,414,826 $200,999,600 $3,895,885 $59 21% GE/Western Ave. 247 4,850,516 $172,583,900 $2,330,083 $36 45% Broad St/MBTA 150 5,848,928 $397,602,000 $3,960,161 $68 89% Boston/Western 187 4,713,689 $355,740,300 $4,339,886 $75 58% Lower Broadway 74 1,581,133 $139,172,100 $1,368,237 $88 49% Hospital 48 591,220 $60,123,500 $337,438 $102 28% Total 1,608 37,779,997 $2,351,277,500 $26,517,911 $62 54% Economic Opportunity Zones as % of City and Difference from City Standard Economic Opp. Zones Acres Gross Bldg SF Total Assessment RE TAX Assmt/SF FAR Downtown 1.9% 6.4% 4.2% 4.9% -35% 246% Central Lynn 4.1% 13.3% 11.0% 9.9% -17% 228% Lynnway 4.1% 4.0% 3.0% 5.6% -26% -2% GE/Western Ave. 2.7% 5.7% 2.5% 3.4% -55% 108% Broad St/MBTA 1.7% 6.9% 5.9% 5.7% -15% 311% Boston/Western 2.1% 5.5% 5.3% 6.2% -5% 167% Lower Broadway 0.8% 1.9% 2.1% 2.0% 11% 127% Hospital 0.5% 0.7% 0.9% 0.5% 28% 31% Total 17.9% 44.4% 34.7% 38.2% -22% 149% Source: Lynn's Assessors Office and RKG Associates, inc. Non-profits organizations are another part of Lynn s tax base, and according to the assessor s classification codes, charitable organizations (906) are listed as the owners of more than 0.5 million square feet (SF) of building area having an assessed value of nearly $34.0 million, although they are exempt from real estate taxes. The Downtown economic opportunity zone contains 168 acres, or 2% of the city s acreage. It is improved with 5.48m SF of building area or 6.4% of the city s building supply. The average assessed value per SF in the downtown is 35% lower than the citywide standard, as show in Table I-2. The downtown generates about 5% of the City s real property tax levy. Residential uses are improved on 14% of the acreage in the downtown, while accounting for 25% of the building area. Residential uses contribute about 25% of the taxes generated RKG Associates, Inc. Page 30

downtown, although the average residential value is about 28% below the citywide standard as shown in Appendix Table I-3. Commercial uses are improved on 42%of the downtown acreage, and commercial buildings account for 40% of the building area in the downtown, but the real estate taxes from commercial properties contribute 68% of the total from the downtown, despite the fact that commercial assessment per SF are 19% lower than the citywide standard, as shown below. Appendix Table I-3: Assessment Summary of the Downtown Economic Opportunity Zone Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 24 1,379,825 $86,557,300 $881,153 $63 135% Commercial 71 2,177,925 $107,885,900 $2,338,966 $50 70% Industrial 6 404,926 $9,500,000 $205,960 $23 166% Tax-Exempt 67 1,520,194 $78,575,200 $0 $52 52% Total 168 5,482,870 $282,518,400 $3,426,080 $52 75% Downtown Opportunity Zones as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 0% 2% 2% 2% -28% 384% Commercial 16% 30% 24% 24% -19% 86% Industrial 1% 7% 6% 6% -7% 446% Tax-Exempt 2% 20% 13% -- -37% 730% Total 2% 6% 4% 5% -35% 246% Source: Lynn's Assessors Office and RKG Associates, inc. Tax-exempt properties utilized 40% of the land area in the downtown, and they are improved with 27% of the building area. These properties however don t contribute taxes. The Central Lynn economic opportunity zone contains 4% of the city s land area, and 13% of the building area, as shown below. Real estate taxes from Central Lynn account for 10% of total taxes, and the average assessed value per SF is 17% lower than the citywide average. Appendix Table I-4: Assessment Summary of the Central Lynn Economic Opportunity Zone Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 194 7,776,195 $546,931,900 $5,567,767 $70 92% Commercial 34 836,793 $42,027,300 $911,152 $50 56% Industrial 37 562,097 $17,584,100 $381,223 $31 34% Tax-Exempt 99 2,121,730 $135,994,400 $0 $64 49% Total 365 11,296,815 $742,537,700 $6,860,142 $66 71% Central Lynn Opportunity Zone as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 4% 12% 10% 10% -19% 232% Commercial 8% 12% 10% 10% -17% 48% Industrial 8% 9% 11% 11% 25% 13% Tax-Exempt 4% 28% 22% -- -21% 683% Total 4% 13% 11% 10% -17% 228% Source: Lynn's Assessors Office and RKG Associates, inc. Residential properties in Central Lynn are improved on 52% of the acreage and residential buildings represent 69% of the building area. Residential taxes generate about 81% of the taxes in Central Lynn, although the average residential value is about 19% lower than the citywide standard. RKG Associates, Inc. Page 31

Tax-exempt uses are developed on 27% of the land in Central Lynn, and have 19% of the building area. However, these properties don t generate real estate taxes. Commercial properties utilize another 9% of the land area, and they are improved with 7% of the building area in Central Lynn. The real estate taxes from commercial properties account for 13% of the taxes from Central Lynn, although commercial values are 17% lower than citywide. The Lynnway economic opportunity zone also contains about 4% of the city s land area and 4% of the building area. The Lynnway generates about 6% of the real estate taxes, although values here are 26% lower than the citywide standard. The FAR in the Lynnway (21%) is the lowest among the eight opportunity zones, indicating this zone is the most underdeveloped in comparison to the others. Appendix Table I-5: Assessment Summary of the Lynnway Economic Opportunity Zone Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 7 196,040 $15,389,200 $156,662 $79 63% Commercial 114 1,716,820 $107,923,600 $2,339,784 $63 35% Industrial 203 1,372,108 $64,549,800 $1,399,440 $47 16% Tax-Exempt 46 129,858 $13,137,000 $0 $101 6% Total 370 3,414,826 $200,999,600 $3,895,885 $59 21% Lynnway Opportunity Zone as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 0% 0% 0% 0% -10% 126% Commercial 26% 24% 24% 24% 3% -8% Industrial 43% 22% 41% 41% 87% -49% Tax-Exempt 2% 2% 2% -- 24% 4% Total 4% 4% 3% 6% -26% -2% Source: Lynn's Assessors Office and RKG Associates, inc. Nearly 55% of the land area in the Lynnway is industrial properties and industrial properties in the Lynnway generated 41% of the industrial real estate taxes in the City as shown above. Industrial values in the Lynnway are 87% higher than the citywide standard. In comparison, commercial values are only 3% higher than commercial values citywide. The GE-Riverworks/Western Avenue economic opportunity zone consists of 247 acres of 3% of the city s acreage, as shown in the following table. This zone is improved with more than 4.85m SF of building area, or 6% of the building area in the City. The taxes generated from this zone represent 3% of those in the City, and average assessed values per SF are 55% lower than the citywide standard as shown in Appendix Table I-6. Industrial properties represent 61% of the land area in this zone and 65% of the building area. The real estate taxes from industrial properties in this zone account for more than 27% of the industrial taxes in the City, although the average assessed value per SF for industrial properties is 46% lower than indicated citywide. Residential properties represent 18% of the land area and 29% of the building area. The taxes from residential uses account for 48% of the taxes generated in this zone. However, residential values are 8% lower than the citywide standard. RKG Associates, Inc. Page 32

Appendix Table I-6: Assessment Summary of the GE-Riverworks/Western Ave. Economic Opportunity Zone Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 45 1,386,448 $110,311,500 $1,122,971 $80 70% Commercial 36 188,007 $13,295,700 $288,251 $71 12% Industrial 150 3,152,947 $42,382,900 $918,861 $13 48% Tax-Exempt 15 123,114 $6,593,800 $0 $54 19% Total 247 4,850,516 $172,583,900 $2,330,083 $36 45% GE-Riverwork/Western Ave. Opportunity Zone as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 1% 2% 2% 2% -8% 153% Commercial 8% 3% 3% 3% 16% -69% Industrial 32% 51% 27% 27% -46% 59% Tax-Exempt 1% 2% 1% -- -34% 197% Total 3% 6% 3% 3% -55% 108% Source: Lynn's Assessors Office and RKG Associates, inc. The Broad Street/MBTA Corridor economic opportunity zone contains 150 acres, or 2% of the city, which are improved with 5.8 million SF or 7% of the City s building area. The taxes generated from this economic opportunity zone represent 6% of total taxes in the City. This zone has the highest FAR (89%) and average assessed value per SF is 15% lower than the citywide standard. Appendix Table I-7: Assessment Summary of the Broad Street/MBTA Corridor Economic Opportunity Zone Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 108 4,704,490 $348,228,600 $3,544,967 $74 100% Commercial 9 210,410 $12,294,500 $266,545 $58 53% Industrial 10 431,648 $6,856,500 $148,649 $16 98% Tax-Exempt 23 502,380 $30,222,400 $0 $60 50% Total 150 5,848,928 $397,602,000 $3,960,161 $68 89% Broad St./MBTA Opportunity Zone as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 2% 7% 6% 6% -15% 260% Commercial 2% 3% 3% 3% -4% 39% Industrial 2% 7% 4% 4% -37% 221% Tax-Exempt 1% 7% 5% -- -26% 694% Total 2% 7% 6% 6% -15% 311% Source: Lynn's Assessors Office and RKG Associates, inc. Residential properties utilize 72% of the land area and contain 80% of the building area. However, residential values are 15% below citywide standards in this zone. Tax exempt uses own 15% of the land area, and these properties are improved with 9% of the building area. Industrial uses are contained on 7% of the land area in this zone, and contribute less than 4% of the real estate taxes generated in this zone. The industrial taxes from these properties also represent 4% of the industrial taxes citywide. The Boston Street/Western Avenue economic opportunity zone contains 187 acres, or 2% of the city, and it is improved with 4.7m SF of building area. The real estate taxes generated from here represent 6% of those in the city. The average assessed value per SF is about 5% lower than the citywide standard. However, the average assessed value for commercial properties in this zone are 38% higher than the citywide standard, and the average for industrial properties in the zone is about 13% higher, as shown below. RKG Associates, Inc. Page 33

Appendix Table I-8: Assessment Summary of the Boston St./Western Ave. Economic Opportunity Zone Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 103 3,527,977 $268,124,600 $2,729,508 $76 78% Commercial 57 803,331 $67,606,000 $1,465,698 $84 32% Industrial 6 235,780 $6,673,400 $144,679 $28 97% Tax-Exempt 21 146,601 $13,336,300 $0 $91 16% Total 187 4,713,689 $355,740,300 $4,339,886 $75 58% Boston St./Western Ave. Opportunity Zone as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 2% 6% 5% 5% -12% 182% Commercial 13% 11% 15% 15% 38% -14% Industrial 1% 4% 4% 4% 13% 219% Tax-Exempt 1% 2% 2% -- 11% 154% Total 2% 6% 5% 6% -5% 167% Source: Lynn's Assessors Office and RKG Associates, inc. Tax-exempt properties utilize 11% of the land area in the Boston Street/Western Avenue opportunity zone, but they do not contribute any real estate taxes. The Lower Broadway economic opportunity zone consists of 74 acres or less than 1% of the City, which is improved with 1.58m SF of building area, or 2% of the city s building area, as shown above. The real estate taxes generated from this economic opportunity zone represents 2% of the City. The average assessed value per SF is 11% higher in this zone than the citywide standard. Appendix Table I-9: Assessment Summary of the Lower Broadway Economic Opportunity Zone Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 49 1,216,936 $111,267,900 $1,132,707 $91 57% Commercial 5 123,981 $10,837,900 $234,966 $87 53% Industrial 0 0 $26,000 $564 -- 0% Tax-Exempt 19 240,216 $17,040,300 $0 $71 29% Total 74 1,581,133 $139,172,100 $1,368,237 $88 49% Lower Broadway Opportunity Zone as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 1% 2% 2% 2% 5% 105% Commercial 1% 2% 2% 2% 44% 41% Industrial 0% 0% 0% 0% -- -- Tax-Exempt 1% 3% 3% -- -13% 358% Total 1% 2% 2% 2% 11% 127% Source: Lynn's Assessors Office and RKG Associates, inc. Residential properties utilize about 66% of the land area in this zone, and 77% of the building area. The average residential value in this zone is about 5% higher than citywide. Commercial properties account for 7% of the land area, and 8% of the building area in this zone, but contribute more than 17% of the real property taxes generated in this zone. The average commercial value per SF in the Lower Broadway zone is 44% higher than the citywide standard. Tax-exempt properties utilize 26% of the land area in the Lower Broadway zone, but don t contribute to the real estate tax levy. RKG Associates, Inc. Page 34

The Hospital economic opportunity zone contains 48 acres and 0.59m SF of building area. Residential uses account for 56% of the land area and 51% of the building area. Real estate taxes from residential uses account for 93% of the property taxes from this zone, and the real estate taxes generated from this zone equates to less than 1% of the city s real property tax levy, as shown below. Appendix Table I-10: Assessment Summary of the Hospital Economic Opportunity Zone Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 27 298,867 $30,773,200 $313,271 $103 25% Commercial 1 14,935 $1,114,700 $24,167 $75 24% Industrial 0 0 $0 $0 -- -- Tax-Exempt 20 277,418 $28,235,600 $0 $102 33% Total 48 591,220 $60,123,500 $337,438 $102 28% Hospital Opportunity Zone as % of City and Difference from City Standard Use Acres Gross Bldg SF Assessment RE Taxes Assmt/SF FAR Residential 1% 0% 1% 1% 19% -8% Commercial 0% 0% 0% 0% 23% -37% Industrial 0% 0% 0% 0% -- -- Tax-Exempt 1% 4% 5% -- 25% 422% Total 1% 1% 1% 0% 28% 31% Source: Lynn's Assessors Office and RKG Associates, inc. The next pages contain two maps of the City of Lynn. This first illustrates the current land uses and the location of these eight economic opportunity zones. The second map exhibits the zoning districts in the City and the eight economic opportunity zones. These maps are followed by the base maps for the individual economic opportunity zones. Each zone has a map exhibiting land use characteristics, existing zoning districts and an aerial photograph. Two additional maps are included in the Central Lynn, GE-Riverworks/Western Avenue, Broad Street/MBTA Corridor and Boston Street/Western Avenue opportunity zones. The first one identifies the residential characteristics by type in each of these four zones, and the second identifies the range in value difference from the citywide standards of the residential properties. These additional maps are intended to assist the Office of Economic and Community Development in their neighborhood revitalization strategy. Tables identifying the land use characteristics in each zone are included in the following sections. A listing of available buildings in each economic opportunity zone is also presented, as well as a table summarizing the number of residential properties by the range of deviation in building value from the citywide standard in those specific zones. RKG Associates, Inc. Page 35

Current Land Use Conditions and Opportunity Zones City of Lynn, Massachusetts L Y N N F I E L D P E A B O D Y Hospital Zone # S A L E M Lower Broadway Zone # S W A M P S C O T T Boston Street/Western Avenue Zone S A U G U S # Broad Street/MBTA Corridor Zone Central Lynn Zone # # Legend Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/Colleg Government Undeveloped Land Saleable/Tax Title Opportunity Zone GE-Riverworks/Western Avenue Zone # Lynnway Zone # L y n n H a r b o r # W Downtown Zone N S E N a h a n t B a y State Route Water Body Land Use and Opportunity Zone Map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn

Zoning Districts City of Lynn, Massachusetts L Y N N F I E L D P E A B O D Y Hospital Zone # S A L E M Lower Broadway Zone # S W A M P S C O T T Boston Street/Western Avenue Zone S A U G U S # Broad Street/MBTA Corridor Zone Central Lynn Zone # # GE-Riverworks/Western Avenue Zone # N a h a n t B a y # Legend # L y n n H a r b o r Downtown Zone Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Opportunity Zone Waterfront Incentive Overlay District CBD Overlay Zone Water Body Lynnway Zone W Zoning District Map prepared by RKG Associates, Inc. Base map data provided by the City of Lynn Zoning data provided by MASSGIS and the City of Lynn Zoning district data current as of 1999 N S E

1. Downtown a) Current Land Uses Current Land Use by Type in the Downtown Economic Opportunity Zone Use Acres % of Total Bldg SF % of Total Assessed Value % of Total AV/SF FAR Residential [1] 25 14.7% 1,783,898 32.5% $106,511,400 37.7% $60 166% Industrial 7 4.0% 479,053 8.7% $10,535,400 3.7% $22 162% Utilities 1 0.7% 70,510 1.3% $2,219,500 0.8% $31 147% Banks, Office, Medical 16 9.6% 943,137 17.2% $47,444,700 16.8% $50 135% Retail, Services 27 16.2% 1,016,743 18.5% $40,245,400 14.2% $40 86% Auto Sales, Services 4 2.2% 50,516 0.9% $3,809,800 1.3% $75 31% Parking Garages, Lots 16 9.6% 354,053 6.5% $14,493,500 5.1% $41 51% Undeveloped Land 13 7.7% 7,852 0.1% $9,483,700 3.4% -- 1% Non-Profits 5 2.7% 267,610 4.9% $8,762,700 3.1% $33 135% Schools & Colleges 15 9.0% 137,111 2.5% $20,109,300 7.1% $147 21% Religious Properties 1 0.9% 59,420 1.1% $2,254,700 0.8% $38 94% Tax-Title Properties 11 6.6% 0 0.0% $547,800 0.2% -- 0% Government 19 11.5% 275,204 5.0% $16,533,500 5.9% $60 33% Open Space 6 3.8% 21,044 0.4% $1,914,500 0.7% $91 8% Total 168 100.0% 5,482,870 100.0% $282,518,400 100.0% $52 75% [1] Includes tax-exempt residential Source: Lynn's Assessors Office and RKG Associates, Inc. b) Building Availabilities Building Availabilities in the Downtown Economic Opportunity Zone Industrial Office Comm/Retail Bldg SF Address Bldg SF Address Bldg SF Address 100,000 C Bain 5,000 85 Exchange (Edison) 8,700 80 Exchange 53,500 20-24 Mt. Vernon St 10,000 614 Washington St 4,000 33 Exchange St 50,000 Prime Bldg (537 Wash) 2,500 441-443 Union St 4,000 Central SQ/Mayo 11,321 212 Broad St 38,747 112 Market St (Eastern Bank) 6,000 Mt Vernon St under T 105,000 270-280 Union St (Eastern Bank) 3,000 Fabens Building 1,800 1 Market St 5,000 Scattered on Union 9,000 87 Oxford (Bank) 5,000 25-27 Central/Olsen 5,000 7-21 Central/Mayo 5,000 Keith Building 1,920 125 Oxford St. 5,000 Goldblock 2,025 191 Oxford St RKG Associates, Inc. Page 38

Current Land Use Downtown Opportunity Zone City of Lynn, Massachusetts Legend Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/Colleg Government Undeveloped Land Saleable/Tax Title Opportunity Zone Boundary Building Water Body Central Avenue Market Street MBTA Rail Line Lynnway Broad Street W N S E 0.5 0 0.5 Miles Opportunity Zone map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Zoning Districts Downtown Opportunity Zone City of Lynn, Massachusetts Central Avenue Market Street Legend Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Building Opportunity Zone Boundary MBTA Rail Line Lynnway Broad Street W N S E 0.5 0 0.5 Miles Zoning District map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn

2. Central Lynn a) Current Land Uses Current Land Uses by Type in the Central Lynn Economic Opportunity Zone Use Acres % of Total Bldg SF % of Total Assessed Value % of Total AV/SF FAR Residential [1] 207 56.6% 8,387,546 74.2% $588,831,800 79.3% $70 93% Industrial 36 9.8% 786,578 7.0% $22,018,200 3.0% $28 51% Utilities 0 0.0% 0 0.0% $39,400 0.0% -- -- Banks, Office, Medical 4 1.2% 125,461 1.1% $7,771,300 1.0% $62 68% Retail, Services 11 3.0% 375,971 3.3% $19,971,000 2.7% $53 78% Auto Sales, Services 6 1.7% 99,293 0.9% $5,418,300 0.7% $55 38% Parking Garages, Lots 4 1.1% 0 0.0% $2,073,200 0.3% -- -- Undeveloped Land 10 2.9% 0 0.0% $1,724,400 0.2% -- -- Tax-Title Properties 0 0.0% 0 0.0% $90,800 0.0% -- -- Non-Profits 4 1.0% 110,482 1.0% $5,535,600 0.7% $50 68% Schools & Colleges 30 8.3% 820,661 7.3% $54,113,200 7.3% $66 62% Churches 13 3.7% 362,082 3.2% $22,049,600 3.0% $61 62% Government 9 2.4% 223,809 2.0% $8,111,800 1.1% $36 58% Open Space, Parks, Cemeteries 30 8.3% 4,932 0.0% $4,789,100 0.6% -- -- Total 365 100.0% 11,296,815 100.0% $742,537,700 100.0% $66 71% Source: Lynn's Assessors Office and RKG Associates, Inc. b) Building Availabilities Building Availabilities in the Central Lynn Economic Opportunity Zone Industrial Office Comm/Retail Bldg SF Address Bldg SF Address Bldg SF Address 64,628 40 Federal St (GE FofF) 12,000 189-191 N. Common 6,000 189-191 N. Common 47,000 Carr Leather 2,256 29 Neptune c) Residential Properties by Assessed Values Residential Parcels in Central Lynn Economic Opportunity Areas by Building Assessed Values Range in Difference from City AVG/SF [1] Mixed S/F 2/F 3/F Multiple 4 to 8 9 or + Boarding Other Conc. Total % of Total 26% or More 16 37 27 14 0 7 8 0 2 111 7% 11% to 25% 9 59 46 53 7 14 3 0 0 191 12% 10% to -10% 19 237 217 198 4 47 21 2 0 745 47% -25% to -11% 5 174 100 116 3 18 8 0 0 424 27% -26% or more 4 93 11 3 0 4 4 0 1 120 8% Total 53 600 401 384 14 90 44 2 3 1,591 100% % of Total 3% 38% 25% 24% 1% 6% 3% 0% 0% 100% [1] Citywide average value per SF is mixed use ($61); S/F ($105); 2/F ($92); 3/F ($89); Multiple ($93); 4 to 8 ($73); 9 or more ($48); Boarding ($54); other ($34) Source: Lynn's Assessors Office and RKG Associates, Inc. RKG Associates, Inc. Page 42

Boston Street Current Land Use Central Lynn Opportunity Zone City of Lynn, Massachusetts Harwood Street Federal Street Legend Waterhill Street Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/Colleg Government Undeveloped Land Saleable/Tax Title Opportunity Zone Boundary Building Water Body Western Avenue Summer Street North Common Street South Common Street Neptune Street Commercial Street Blossom Street N W S E 0.5 0 0.5 Miles Opportunity Zone map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Boston Street Zoning Districts Central Lynn Opportunity Zone City of Lynn, Massachusetts Harwood Street Federal Street Legend Waterhill Street North Common Street South Common Street Blossom Street Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Building Opportunity Zone Boundary Western Avenue Summer Street Neptune Street Commercial Street W N S E 0.5 0 0.5 Miles Zoning District map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn

Blossom Street W Aerial Photograph Central Lynn Opportunity Zone City of Lynn, Massachusetts N E S 0.5 0 0.5 Miles Opportunity Zone graphic prepared by RKG Associates, Inc. May, 2005 Graphic data provided by MASSGIS Harwood Street Boston Street Federal Street Waterhill Street North Common Street South Common Street Commercial Street Summer Street Neptune Street Western Avenue

Boston Street Residential Property Type Central Lynn Opportunity Zone City of Lynn, Massachusetts Harwood Street Federal Street Waterhill Street Common Street South Common Street Blossom Street Type of Residential Use Single Family 2 to 3 Units 4 to 8 Units 9 or More Units Mutiple Housing Mixed Use Boarding House Other Congregate Central Lynn Zone Boundary Western Avenue Summer Street NorthCommercial Street Neptune Street N W S E 0.5 0 0.5 1 Miles Residential Property map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Boston Street North Common Street South Common Street Comparison of Residential Building Value (per Square Foot) to Citywide Standard Central Lynn Opportunity Zone City of Lynn, Massachusetts Harwood Street Federal Street Blossom Street Waterhill Street % Deviation from Citywide Average 26% or More 11% to 25% 10% to -10% -11% to -25% -26% or More Central Lynn Zone Boundary Western Avenue Summer Street Neptune Street Commercial Street N W S E 0.5 0 0.5 1 Miles Building Value map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

3. Lynnway a) Current Land Uses Current Land Uses by Type in the Lynnway Economic Opportunity Zone Use Acres % of Total Bldg SF % of Total Assessed Value % of Total AV/SF FAR Residential 7 1.9% 196,040 5.7% $15,389,200 7.7% $79 63% Industrial 138 37.3% 1,635,052 47.9% $58,497,800 29.1% $36 27% Utilities 36 9.8% 76,202 2.2% $16,558,500 8.2% $217 5% Banks, Office, Medical 18 4.9% 549,136 16.1% $20,026,000 10.0% $36 69% Retail, Services 29 7.9% 412,219 12.1% $29,223,100 14.5% $71 32% Auto Sales, Services 36 9.6% 416,319 12.2% $33,134,700 16.5% $80 27% Parking Garages, Lots 10 2.7% 0 0.0% $4,435,100 2.2% -- -- Undeveloped Land 50 13.4% 0 0.0% $10,598,200 5.3% -- -- Non-Profits 1 0.4% 41,844 1.2% $1,484,300 0.7% $35 65% Government 41 11.2% 88,014 2.6% $11,075,900 5.5% $126 5% Tax-Title Properties 3 0.8% 0 0.0% $576,800 0.3% -- -- Total 370 100.0% 3,414,826 100.0% $200,999,600 100.0% $59 21% Source: Lynn's Assessors Office and RKG Associates, Inc. b) Building Availabilities Building Availabilities in the Lynnway Economic Opportunity Zone Industrial Office Comm/Retail Bldg SF Address Bldg SF Address Bldg SF Address 77,665 159 Pleasant St 40,000 Clocktower 27,500 395 Lynnway (Atlantic Retail) 100,000 Clocktower 3,000 364 Lynnway (Harbor Mall) 6,700 18 Alley St 49,173 175 Alley St 7,752 76 Marine Blvd 48,000 420 Lynnway RKG Associates, Inc. Page 48

Circle Avenue Alley Street Lynnway Current Land Use Lynnway Opportunity Zone City of Lynn, Massachusetts Commercial Street Blossom Street Legend Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/Colleg Government Undeveloped Land Saleable/Tax Title Opportunity Zone Boundary Building Water Body Lynnway Riley Way N W S E 0.5 0 0.5 Miles Opportunity Zone map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Circle Avenue Alley Street Lynnway Zoning Districts Lynnway Opportunity Zone City of Lynn, Massachusetts Commercial Street Blossom Street Legend Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Lynnway Riley Way Building Opportunity Zone Boundary W N E 0.5 0 0.5 Miles Zoning District map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn S

Circle Avenue Alley Street Lynnway Aerial Photograph Lynnway Opportunity Zone City of Lynn, Massachusetts Commercial Street Blossom Street Lynnway Riley Way L y n n H a r b o r W N S E 0.5 0 0.5 Miles Opportunity Zone graphic prepared by RKG Associates, Inc. May, 2005 Graphic data provided by MASSGIS

4. GE-Riverworks/Western Avenue a) Current Land Uses Current Land Uses by Type in the GE-Riverworks/Western Ave. Economic Opportunity Zone Use Acres % of Total Bldg SF % of Total Assessed Value % of Total AV/SF FAR Residential 45 18% 1,397,965 29% $111,086,400 64% $79 71% Industrial 153 62% 3,199,366 66% $43,140,700 25% $13 48% Utilities 0 0% 0 0% $69,900 0% -- -- Banks, Office, Medical 0 0% 13,485 0% $947,800 1% $70 101% Retail, Services 8 3% 68,595 1% $4,330,300 3% $63 19% Auto Sales, Services 10 4% 59,508 1% $4,405,300 3% $74 14% Parking Garages, Lots 2 1% 0 0% $724,700 0% -- -- Undeveloped Land 13 5% 0 0% $2,059,900 1% -- -- Non-Profits 1 1% 23,484 0% $720,700 0% $31 39% Government 5 2% 58,829 1% $2,708,700 2% $46 28% Religious Properties 1 0% 29,284 1% $1,699,400 1% $58 67% Tax-Title Properties 2 1% 0 0% $395,400 0% -- -- Parks, OS, Cemeteries 6 2% 0 0% $294,700 0% -- -- Total 247 100% 4,850,516 100% $172,583,900 100% $36 45% Source: Lynn's Assessors Office and RKG Associates, Inc. b) Building Availabilities No building availabilities were identified in this zone at the time of the report c) Residential Properties by Assessed Values Residential Parcels in GE-Riverworks Opportunity Areas by Building Assessed Values Range in Difference from City AVG/SF [1] Mixed S/F 2/F 3/F Multiple 4 to 8 9 or + Boarding Other Conc. Total % of Total 26% or More 2 9 5 2 0 1 1 0 0 20 5% 11% to 25% 6 22 10 8 0 2 0 0 0 48 12% 10% to -10% 1 118 45 42 3 7 0 1 0 217 54% -25% to -11% 2 55 14 29 1 1 0 0 0 102 25% -26% or more 0 14 2 0 0 1 0 0 0 17 4% Total 11 218 76 81 4 12 1 1 0 404 100% % of Total 3% 54% 19% 20% 1% 3% 0% 0% 0% 100% [1] Citywide average value per SF is mixed use ($61); S/F ($105); 2/F ($92); 3/F ($89); Multiple ($93); 4 to 8 ($73); 9 or more ($48); Boarding ($54); other ($34) Source: Lynn's Assessors Office and RKG Associates, Inc. RKG Associates, Inc. Page 52

Current Land Use GE-Riverworks/ Western Avenue Opportunity Zone City of Lynn, Massachusetts Summer Street West Neptune Street Legend Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/Colleg Government Undeveloped Land Saleable/Tax Title GE-Riverworks Zone Boundary Building Water Body Western Avenue W N S E 0.5 0 0.5 Miles Opportunity Zone map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Zoning Districts GE-Riverworks/ Western Avenue Opportunity Zone City of Lynn, Massachusetts Summer Street West Neptune Street Legend Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Building Opportunity Zone Boundary Western Avenue W N S E 0.3 0 0.3 Miles Zoning District map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn

Aerial Photograph GE-Riverworks/ Western Avenue Opportunity Zone City of Lynn, Massachusetts Summer Street West Neptune Street Western Avenue Saugus River W N S E 0.5 0 0.5 Miles Opportunity Zone graphic prepared by RKG Associates, Inc. May, 2005 Graphic data provided by MASSGIS

Residential Property Type GE-Riverworks Western Avenue Opportunity Zone City of Lynn, Massachusetts Summer Street West Neptune Street Type of Residential Use Single Family 2 to 3 Units 4 to 8 Units 9 or More Units Mutiple Housing Mixed Use Boarding House Other Congregate GE-Riverworks Western Ave Zone Boundary Western Avenue W N S E 0.5 0 0.5 Miles Residential property map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Comparison of Residential Building Value (per Square Foot) to Citywide Standard GE-Riverworks Western Avenue Opportunity Zone City of Lynn, Massachusetts Summer Street West Neptune Street Western Avenue % Deviation from Citywide Average 26% or More 11% to 25% 10% to -10% -11% to -25% -26% or More GE-Riverworks Western Ave Zone Boundary N W S E 0.5 0 0.5 Miles Building Value map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

5. Broad Street/MBTA Corridor a) Current Land Uses Current Land Uses by Type in the Broad St./MBTA Economic Opportunity Zone Use Acres % of Total Bldg SF % of Total Assessed Value % of Total AV/SF FAR Residential 111 74% 4,857,582 83% $358,010,700 90% $74 100% Industrial 12 8% 474,243 8% $8,919,000 2% $19 89% Utilities 0 0% 0 0% $95,300 0% -- -- Banks, Office, Medical 1 1% 26,735 0% $1,384,700 0% $52 67% Retail, Services 4 3% 123,316 2% $7,672,200 2% $62 68% Auto Sales, Services 1 1% 17,764 0% $732,600 0% $41 48% Parking Garages, Lots 3 2% 0 0% $905,900 0% -- -- Undeveloped Land 0 0% 0 0% $153,800 0% -- -- Government 2 1% 0 0% $284,100 0% -- -- Non-Profits 2 1% 85,622 1% $4,944,100 1% $58 88% Schools & Colleges 4 3% 152,779 3% $8,814,100 2% $58 85% Religious Properties 3 2% 92,103 2% $4,596,900 1% $50 63% Tax-Title Properties 0 0% 17,700 0% $538,800 0% $30 268% Parks, OS, Cemetaries 6 4% 1,084 0% $549,800 0% $507 0% Total 150 100% 5,848,928 100% $397,602,000 100% $68 89% Source: Lynn's Assessors Office and RKG Associates, Inc. b) Building Availabilities Building Availabilities in the Broad St./MBTA Corridor Economic Opportunity Zone Industrial Office Comm/Retail Bldg SF Address Bldg SF Address Bldg SF Address 14,000 82 Sanderson Ave 4,000 82 Sanderson Ave -- -- c) Residential Properties by Assessed Values Residential Parcels in Broad St./MBTA Corridor Opportunity Areas by Building Assessed Values Range in Difference from City AVG/SF [1] Mixed S/F 2/F 3/F Multiple 4 to 8 9 or + Boarding Other Conc. Total % of Total 26% or More 13 20 17 11 0 7 4 0 0 72 7% 11% to 25% 5 28 42 29 0 12 5 0 0 121 12% 10% to -10% 5 196 145 93 1 16 11 0 0 467 47% -25% to -11% 1 122 77 37 1 12 6 1 0 257 26% -26% or more 1 63 18 1 0 1 0 0 0 84 8% Total 25 429 299 171 2 48 26 1 0 1,001 100% % of Total 2% 43% 30% 17% 0% 5% 3% 0% 0% 100% [1] Citywide average value per SF is mixed use ($61); S/F ($105); 2/F ($92); 3/F ($89); Multiple ($93); 4 to 8 ($73); 9 or more ($48); Boarding ($54); other ($34) Source: Lynn's Assessors Office and RKG Associates, Inc. RKG Associates, Inc. Page 58

Current Land Use Conditions Broad Street/ MBTA Corridor Opportunity Zone City of Lynn, Massachusetts Eastern Avenue Legend Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/College Government Undeveloped Land Saleable/Tax Title Broad St./MBTA Zone Boundary Water Body Green Street Chatham Street MBTA Rail Line Broad Street N W S E 0.5 0 0.5 Miles Opportunity Zone map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Zoning Districts Broad Street/ MBTA Corridor Opportunity Zone City of Lynn, Massachusetts Eastern Avenue Legend MBTA Rail Line Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Opportunity Zone Boundary Green Street Chatham Street Broad Street W N E 0.5 0 0.5 Miles Zoning District map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn S

Broad Street Aerial Photograph Broad Street/ MBTA Corridor Opportunity Zone City of Lynn, Massachusetts Eastern Avenue MBTA Rail Line Chatham Street Green Street W N S E 0.5 0 0.5 Miles Opportunity Zone graphic prepared by RKG Associates, Inc. May 2005 Graphic data provided by MASSGIS

Residential Property Type Broad Street/MBTA Corridor Opportunity Zone City of Lynn, Massachusetts Eastern Avenue MBTA Rail Line Type of Residential Use Single Family 2 to 3 Units 4 to 8 Units 9 or More Units Mutiple Housing Mixed Use Boarding House Other Congregate Broad Street MBTA Corridor Zone Boundary Green Street Chatham Street Broad Street N W S E 0.5 0 0.5 Miles Residential Property map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Comparison of Residential Building Value (per Square Foot) to Citywide Standard Broad Street/MBTA Corridor Opportunity Zone City of Lynn, Massachusetts Eastern Avenue MBTA Rail Line Chatham Street % Deviation from Citywide Average 26% or More 11% to 25% 10% to -10% -11% to -25% -26% or More Broad Street MBTA Corridor Zone Boundary Green Street Broad Street N W S E 0.5 0 0.5 Miles Building Value map prepared by RKG Associates, Inc. Map, 2005 Map data provided by the City of Lynn

6. Boston Street/Western Avenue a) Current Land Uses Current Land Uses by Type in the Boston St./Western Ave. Economic Opportunity Zone Use Acres % of Total Bldg SF % of Total Assessed Value % of Total AV/SF FAR Residential 113 61% 3,703,218 79% $282,748,600 79% $76 75% Industrial 7 4% 268,378 6% $7,861,100 2% $29 89% Banks, Office, Medical 3 1% 68,648 1% $5,054,700 1% $74 63% Retail, Services 31 17% 485,265 10% $39,661,000 11% $82 35% Auto Sales, Services 6 3% 42,524 1% $5,643,000 2% $133 17% Parking Garages, Lots 5 3% 17,324 0% $2,720,100 1% $157 8% Undeveloped Land 2 1% 0 0% $465,700 0% -- -- Non-Profits 1 1% 26,352 1% $1,219,600 0% $46 49% Schools & Colleges 0 0% 14,580 0% $938,600 0% $64 94% Religious Properties 2 1% 52,021 1% $3,412,100 1% $66 51% Tax-Title Properties 0 0% 0 0% $49,100 0% -- -- Government 1 0% 24,445 1% $740,500 0% $30 99% Parks, OS & cemeteries 16 8% 10,934 0% $5,226,200 1% $478 2% Total 187 100% 4,713,689 100% $355,740,300 100% $75 58% Source: Lynn's Assessors Office and RKG Associates, Inc. b) Building Availabilities Building Availabilities in the Boston St./Western Avenue Economic Opportunity Zone Industrial Office Comm/Retail Bldg SF Address Bldg SF Address Bldg SF Address -- -- 950 583 Chestnut St. 2,467 61 Franklin St 1,000 578 Chestnut St c) Residential Properties by Assessed Values Residential Parcels in Boston St./Western Ave. Opportunity Areas by Building Assessed Values Range in Difference from City AVG/SF [1] Mixed S/F 2/F 3/F Multiple 4 to 8 9 or + Boarding Other Conc. Total % of Total 26% or More 12 36 17 10 1 4 8 1 0 89 11% 11% to 25% 3 38 26 15 1 13 2 0 0 98 12% 10% to -10% 4 170 107 58 2 22 8 2 0 373 45% -25% to -11% 2 103 45 51 1 6 4 0 0 212 25% -26% or more 2 43 11 3 0 1 0 0 0 60 7% Total 23 390 206 137 5 46 22 3 0 832 100% % of Total 3% 47% 25% 16% 1% 6% 3% 0% 0% 100% [1] Citywide average value per SF is mixed use ($61); S/F ($105); 2/F ($92); 3/F ($89); Multiple ($93); 4 to 8 ($73); 9 or more ($48); Boarding ($54); other ($34) Source: Lynn's Assessors Office and RKG Associates, Inc. RKG Associates, Inc. Page 64

Current Land Use Boston St./Western Ave. Opportunity Zone City of Lynn, Massachusetts Chestnut Street Ford Street Maple Street Legend Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/Colleg Government Undeveloped Land Saleable/Tax Title Opportunity Zone Boundary Building Water Body Boston Avenue Washington Street Franklin Street Western Avenue N W S E 0.5 0 0.5 Miles Opportunity Zone map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Zoning Districts Boston St./Western Ave. Opportunity Zone City of Lynn, Massachusetts Chestnut Street Ford Street Maple Street Legend Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Building Opportunity Zone Boundary Boston Avenue Washington Street Franklin Street Western Avenue W N E 0.5 0 0.5 Miles Zoning District map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn S

Aerial Photograph Boston Street/Western Avenue Opportunity Zone City of Lynn, Massachusetts Chestnut Street Ford Street Maple Street Boston Avenue Western Avenue Washington Street Franklin Street W N S E 0.5 0 0.5 Miles Opportunity Zone graphic prepared by RKG Associates, Inc. May, 2005 Graphic data provided by MASSGIS

Residential Property Type Boston St./Western Ave. Opportunity Zone City of Lynn, Massachusetts Chestnut Street Ford Street Maple Street Type of Residential Use Single Family 2 to 3 Units 4 to 8 Units 9 or More Units Mutiple Housing Mixed Use Boarding House Other Congregate Western/Boston Ave. Zone Boundary Boston Avenue Washington Street Franklin Street Western Avenue W N S E 0.5 0 0.5 1 Miles Residential property map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Comparison of Residential Building Value (per Square Foot) to Citywide Standard Boston St./Western Ave. Opportunity Zone City of Lynn, Massachusetts Chestnut Street Ford Street Maple Street Boston Avenue Western Avenue % Deviation from Citywide Average 26% or More 11% to 25% 10% to -10% -11% to -25% -26% or More Western/Boston Ave. Zone Boundary Washington Street Franklin Street W N S E 0.5 0 0.5 1 Miles Building Value map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

7. Lower Broadway a) Current Land Uses Current Land Uses in the Lower Broadway Economic Opportunity Zone Use Acres % of Total Bldg SF % of Total Assessed Value % of Total AV/SF FAR Residential 52 71% 1,266,035 80% $116,299,300 84% $92 56% Industrial 0 0% 1,184 0% $88,600 0% $75 24% Utilities 0 0% 0 0% $26,000 0% -- -- Banks, Office, Medical 1 1% 28,550 2% $3,058,200 2% $107 60% Retail, Services 3 4% 90,838 6% $6,656,500 5% $73 67% Auto Sales, Services 1 1% 3,409 0% $894,000 1% $262 10% Parking Garages, Lots 1 1% 0 0% $365,600 0% -- -- Undeveloped Land 0 0% 0 0% $14,200 0% -- -- Non-Profits 0 1% 8,772 1% $368,300 0% $42 54% Schools & Colleges 5 7% 135,638 9% $7,127,500 5% $53 62% Religious Properties 1 2% 29,783 2% $1,845,200 1% $62 56% Tax-Title Properties 0 0% 0 0% $3,000 0% -- -- Government 2 3% 16,924 1% $1,660,000 1% $98 20% Parks, OS & cemeteries 7 9% 0 0% $765,700 1% -- -- Total 74 100% 1,581,133 100% $139,172,100 100% $88 49% Source: Lynn's Assessors Office and RKG Associates, Inc. b) Building Availabilities No building availabilities were identified in this zone at the time of the report RKG Associates, Inc. Page 70

Current Land Use Lower Broadway Opportunity Zone City of Lynn, Massachusetts Sluice Pond Lynnfield Street Legend Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/Colleg Government Undeveloped Land Saleable/Tax Title Opportunity Zone Boundary Building Water Body Parkland Avenue Broadway Flax Pond N W S E 0.2 0 0.2 Miles Opportunity Zone map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Zoning Districts Lower Broadway Opportunity Zone City of Lynn, Massachusetts Sluice Pond Lynnfield Street Legend Broadway Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Building Opportunity Zone Boundary Parkland Avenue Flax Pond W N E 0.2 0 0.2 Miles Zoning District map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn S

Aerial Photograph Lower Broadway Opportunity Zone City of Lynn, Massachusetts Sluice Pond Lynnfield Street Broadway Parkland Avenue Flax Pond W N S E 0.2 0 0.2 Miles Opportunity Zone graphic prepared by RKG Associates, Inc. May, 2005 Graphic data provided by MASSGIS

8. Hospital a) Current Land Uses Current Land Uses in the Hospital Economic Opportunity Zone Use Acres % of Total Bldg SF % of Total Assessed Value % of Total AV/SF FAR Residential 27 57% 303,227 51% $31,149,300 52% $103 26% Industrial 0 1% 5,620 1% $237,500 0% $42 46% Banks, Office, Medical 1 2% 5,825 1% $466,600 1% $80 16% Retail, Services 4 8% 276,548 47% $22,610,100 38% $82 161% Parking Garages, Lots 0 0% 0 0% $115,900 0% -- -- Non-Profits 13 26% 0 0% $4,781,000 8% -- -- Tax-Title Properties 3 6% 0 0% $763,100 1% -- -- Total 48 100% 591,220 100% $60,123,500 100% $102 28% Source: Lynn's Assessors Office and RKG Associates, Inc. b) Building Availabilities No building availabilities were identified in this zone at the time of the report RKG Associates, Inc. Page 74

Current Land Use Hospital Opportunity Zone City of Lynn, Massachusetts Daytona Road Harris Road Legend Lynnfield Street Residential Industrial Utilities Office/Bank/Medical Retail/Services Auto Sales/Service Parking Facilities Open Space/Park/Cemetary Church/Non-Profit/School/Colleg Government Undeveloped Land Saleable/Tax Title Opportunity Zone Boundary Dartmouth Street Water Body N W S E 0.2 0 0.2 Miles Opportunity Zone map prepared by RKG Associates, Inc. May, 2005 Map data provided by the City of Lynn

Zoning Districts Hospital Opportunity Zone City of Lynn, Massachusetts Daytona Road Harris Road Lynnfield Street Legend Business District Business District Class 3 Central Business District Heavy Industry District Light Industry District Park/Cemetary District Single Family District General Residential District Apartment House Class 1 Apartment House Class 2 High Rise District Dartmouth Street Opportunity Zone Boundary W N S E 0.3 0 0.3 Miles Zoning District map prepared by RKG Associates, Inc. May, 2005 Map data provided by MASSGIS and the City of Lynn

Aerial Photograph Hospital Opportunity Zone City of Lynn, Massachusetts Daytona Road Harris Road Lynnfield Street Dartmouth Street W N S E 0.2 0 0.2 Miles Opportunity Zone graphic prepared by RKG Associates, Inc. May, 2005 Graphic data provided by MASSGIS

APPENDIX FOR THE ECONOMIC DEVELOPMENT STRATEGY CITY OF LYNN, MASSACHUSETTS. May 16, 2005