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Route 138 Corridor Study (2020)

Town Meeting · Record year 2020 · Record c07a060449e44b1de5

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Saved text from 100 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.

Source page 41

Conversations with local brokers, developers, and economic development officials suggested that
there is a strong appetite for new housing of many different types within Canton. Despite the
construction of several hundred new units since 2010, the town’s housing vacancy rate was among
the lowest in the entire state in 2017, falling to 2.5 percent from 4.4 percent in 2010. 20 Demand is
reported to be clearest in the most transit-connected and walkable portions of the town: Canton
Center, and increasingly Canton Junction, where several condominium projects are in the works.
Housing in these areas provides access and amenities that housing in the Study Corridor today cannot.
However, stakeholders reported that new housing would likely find a strong market along Route 138
due to its proximity to jobs, and the diversity of units that the Corridor’s larger spaces could allow
developers to build. By constructing at a larger scale - scale far less feasible in Canton Center -
developers felt that they could provide a wider range of unit sizes, types, and price/rent points. The
incorporation of other uses like retail on the site or nearby was viewed as an amenity for residents,
according to several stakeholders. In the auto-oriented context of Route 138 that may not necessarily
mean “stacked” uses (typically residential over retail or office space), but adjacent uses on the same
parcel.

The construction of housing that is highly accessible to one of the town’s largest job centers may be
viewed as a tool for attracting and retaining businesses. Several firms reported operating private
shuttles in order to bring workers that live in communities with more diverse housing inventories.
Especially in the case of firms that employ lower-income administrative workers or physical laborers,
investing in this connectivity may be a mandatory expense in order to find qualified workers that
cannot afford Canton’s current housing stock. One firm reported having workers in their distribution
center that walk to work from nearby apartment complexes. The addition of more housing within
reach of the Corridor’s workers – in addition to investment in sidewalk, bicycle, and streetscape
infrastructure to keep them safe and comfortable – may allow more firms to draw employees from
nearby without worsening car traffic.


OFFICE, INDUSTRIAL & FLEX MARKET
The Route 138 Study Corridor has just over 970,000 square feet of commercial space classified by the
town assessor as office, and 3.434 million square feet as industrial. 21 In reality, classifying Canton’s
commercial space as office, industrial, or “other” is a challenging exercise – and is part of what makes
the Corridor unique. Its “office” space can perhaps best be separated into two types: “pure office”
space, and “flex” office space. While flex space is typically classified as industrial, as much as 80 or 90
percent of the rentable square footage in a flex space may be dedicated for office uses. Flex spaces
typically have more no-frills fit-outs, fewer amenities, higher ceilings and more open layouts, and
largely have lower asking rents per square foot than traditional office space. Many of the Corridor’s



20 US Census Bureau, Census 2010, American Community Survey 5-Year Estimates 2013-2017.

21 Canton Assessor’s Database, 2018.


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flex facilities include a loading dock, or space for distribution or light manufacturing activities in
addition to office. The other office product in the Corridor is what is sometimes called “pure” office.
These are traditional office spaces with small rooms or cubicles and low ceilings, and often come with
amenities like kitchen space.

Within the Corridor, the vast majority of commercial space of both types is aging and would be
described as Class B or lower by most real estate professionals. The largest such spaces are clustered
in “business park” settings like on Dan Road, John Road, New Boston Drive, and Pequot Way, among
others. The vast majority were built in the 1980s and 1990s.

According to conversations with real estate professionals with local knowledge, the two types of
commercial products are experiencing different levels of “leaseability” within the Corridor. Pure
office space is reported to be leasing for between $12 and $16 per square foot per year, gross of taxes
and utilities. Flex space, in similarly aging structures, is leasing for between $10 and $14 per square
foot per year, gross. This gap in asking rents between the two types of product is relatively small.
Brokers reported stronger lease activity for the Corridor’s flex space than for its pure office space.
Some stakeholders mentioned that changing preferences of the modern office worker are rendering
single-use, suburban office product less competitive – especially when spaces are older and lacking
amenities. Many firms would reportedly be willing to spend a few extra dollars per square foot to
locate in newer buildings with better access to a mix of uses if it were seen as a way to improve talent
attraction and retention. Including the full-building vacancy at 30 Dan Road, there is likely between
190,000 and 200,000 square feet of vacant pure office space within the Corridor. Conversely, seekers
of affordable flex space have reportedly been much more willing to inhabit older spaces – given the
lack of interior finishes in most flex spaces, old buildings may not function that differently from newly-
built ones. There may be between 50,000 and 60,000 square feet of vacant flex space within the
Corridor, excluding the vacant, Organogenesis-owned facility at 275 Dan Road (98,704 square feet),
for which there are currently no known development or leasing plans. 22

RENTS, VACANCY AND INVENTORY

In general, the Corridor’s asking rents for office and flex/industrial space are lower than those further
north in Canton, closer to I-95/Route 128. This is likely a result of both an older inventory and less ease
of access onto highways. Still, based upon a review of active online listings and conversations with
realtors, RKG has estimated the Corridor’s commercial vacancy rate to be between six and eight
percent, well below the regional vacancy rate.

Overall, Canton’s most competitive office inventory – closer to I-95 - has asking rents of $20 to $24 per
square foot, in line with the Route 1 South submarket overall, which has average market asking rents
of $24.75 per square foot per year. 23 The Route 1 South area, defined by CoStar research as Canton,


22 Stakeholder interviews

23 CoStar, via MassDevelopment


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Dedham, Norwood, Stoughton, and Westwood, is home to nearly 8.5 million square feet of office
space, less than 19 percent of which is “4 & 5 Star,” or Class A space. The region’s 15 percent overall
vacancy rate and 35 percent vacancy rate for Class A space are not typical, and reflect the continuing
vacancy of the former Reebok property in Canton. For example, the regional 4- and 5-star office
vacancy rate jumped from under five percent to 35 percent as a result of the Reebok move in 2017.
While the Study Corridor is home to just one structure that would likely be considered a Class A space
– 40 Pequot Way, the former Tweeter building – its relatively low rents versus the regional average
may help it to continue in its role as an affordable option with close access to I-95/Route 128. The Route
1 South region overall is viewed as an affordable alternative to Boston proper, in which asking rents
are near $40/sf on average.

According to CoStar, zero square feet of new construction were in the regional pipeline as of mid-
2019, as developers wait to see what happens as Spear Street Capital markets the former Reebok site.

            Table 16: Office Market Key Indicators, Route 1 South Region
                                                 Inventory         Market                   SF Under
                                                    (SF)   Vacancy  Rent                   Construction
            Total Route 1 South Region            8.481m    15.1% $24.75/sf                    0 sf
            4- and 5-Star Office                  1.574m         35.0%       $34.35/sf           0 sf
            3-Star Office                         4.810m         12.9%       $23.64/sf           0 sf
            2-Star Office                         2.097m         5.3%        $20.09/sf           0 sf
                    *Route 1 South region is defined as Canton, Dedham, Norwood, Stoughton and Westwood
                                                       Sources: CoStar, via MassDevelopment; RKG Associates


RETAIL MARKET
The Study Corridor is home to a diverse range of retail and service outlets, from mom-and-pop
delicatessens to pet groomers and fence stores. While a drive down Route 138 might not suggest that
these businesses exist in one of Metro Boston’s most competitive retail environments, the following
“retail leakage analysis” confirms that the Study Corridor is surrounded by large, highly-developed
retail clusters.

The retail leakage analysis that follows examines the difference between the supply (existing
establishment sales) and the demand (consumer household spending) for a variety of different types
of retail stores and merchandise categories within a short drive of the Study Corridor. The three
markets considered (as shown in Figure 14) are: Primary Market, or households within a five-minute
drive of Dan Road and Route 138; Secondary Market, or households between a five- and ten-minute
drive; and Tertiary Market, or households between a ten- and 15-minute drive. The results of the
analysis indicate if there are any retail “gaps” that can be filled by new store openings, if the Corridor
has the economic ability to support them.

Data on the markets’ existing retail sales and consumer spending habits are drawn from ESRI Business
Analyst, a geospatial data analytics program. The demand data indicate the level of consumer

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spending occurring for households within each of the three market areas, based upon their income
levels and spending patterns within the different retail categories (Figure 15). The supply data shows
the dollar value of sales captured for each retail category based on the reported sales from local
establishments within each of the three market areas.

Comparing the demand and supply data can help identify opportunities for Canton to encourage
existing retailers to expand and/or to attract new retailers to the Corridor via increased marketing or
incentives. This demand-supply comparison identifies “sales leakage.” Sales leakage occurs when
local consumer demand for retail goods exceeds the amount of sales that are captured by local retail
establishments. High sales leakage generally indicates that the local marketplace is underserved in
that specific retail category, oftentimes with an insufficient number or quality of product lines and/or
fewer businesses than can be supported.


      Figure 15: Primary, Secondary & Tertiary Markets for Study Corridor




                                                        Sources: ESRI Business Analyst Retail Market Profile
That said, it is normal for consumers to make retail purchases outside their home municipality.
Realistically, it is not possible to stop all sales leakage because people shop outside their primary
market for reasons of convenience. They will, for example, shop while at work, which may be outside
their primary market. In addition, a growing share of retail demand is being captured by online
retailers, which often do not have a physical location. Some of this sales leakage could be recaptured
by new or existing businesses if they expand their product lines or if new businesses open and capture
this unmet spending potential. The analysis that follows assumes that the Primary Market captures

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between 15 and 25 percent of unmet demand, the Secondary Market captures between five and ten
percent, and the most competitive – the Tertiary Market – captures just one to three percent. As shown
in Figure 15, this highly-competitive Tertiary Market has over six million square feet of retail and
restaurant space, led by major developments like University Station, Westgate Mall, and Legacy Place.

Figure 16 presents estimates of the supportable square feet of various retail types within the Corridor,
based upon potential recapture of unmet retail demand in the three market areas. These are provided
as ranges, to account for high levels of variability in the actual recapture rate. The total supportable
retail square footage in the Study Corridor is estimated to be between 55,000 and 95,000 square feet
based upon today’s households, workers, and spending habits. It should be noted that some of this
incremental square footage could be provided by filling existing vacancies, and by increased efficiency
in existing structures in addition to new construction. Additionally, some of the category-specific
square footage figures in Figure 16 may not be enough to justify construction of a new retail outlet.
For example, full-service grocery stores in the US tend to average between 40,000 and 45,000 square
feet, meaning that the forecasted demand for 3,900 to 7,700 is unlikely to be sufficient to warrant the
opening of a new grocery store.


 Figure 16: Potential Supportable Retail Square Footage




                                         Sources: ESRI Business Analyst Retail Market Profile; RKG Associates



The largest potential retail category is restaurants, with up to 25,000 potentially supportable square
feet. The vast majority of this potential demand is driven by the area’s employees, which can generate
up to an average of $30 a week in restaurant spending alone. There may be opportunities for niche
outlets of clothing stores, health & personal care stores, and sporting goods/hobby/music stores, while
demand for general merchandise and electronics/appliance stores may not be large enough to justify
investment.


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Any new or expanded retailer in the Study Corridor will likely need to be highly focused on meeting
the demands of its primary market. Given the highly competitive retail environment within a 15-
minute drive of the Corridor, businesses will likely be unable to count on drawing significant
consumer spending from neighboring cities and towns. The most successful future businesses will be
niche retailers with a unique or experiential business model that provides quality a customer will
choose over the convenience of online shopping.

LAND USE COMPOSITION AND ZONING ANALYSIS
The section of Route 138 that passes through Canton is one of the primary commercial and industrial
activity centers in town, and the composition of land uses reflects this. Based upon use classifications
from the Town of Canton’s property assessment database, 47 percent of the land within the Study
Corridor is used for primarily industrial activities. This ranges from manufacturing, to research and
testing facilities, to storage and warehousing. Another 16 percent is used for office, retail, and
restaurant uses, which are primarily concentrated at the northern and southern ends of the Corridor.
These two areas are home to the business zoning districts. The remainder of the land along the
Corridor has been classified as either tax exempt, vacant land that could be developed, or vacant land



 Figure 17: Land Use Composition




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that is undevelopable. Figure 17 shows a breakdown of land use classifications and the acreage within
each category.


EXISTING ZONING
There are currently eight zoning districts that regulate how land can be used along the section of Route
138 that comprises the study area. Zoning at the northern and southern ends of the Corridor tends to
create transitional areas from the more intensely developed industrial districts in the center. A
combination of residential and business zoning districts buffers nearby residential neighborhoods
from the activities in Canton’s industrial and office parks. The eight zoning districts that comprise the
study area include:

         Single Residence AA (SRAA)
                                                Figure 18: Zoning District Composition
         Single Residence B (SRB)
         Single Residence C (SRC)
         Business (B)
         Limited Industrial (LI)
         Limited Industrial B (LIB)
         Industrial (I)
         Parkland and Open Space (POS)

Similar to its land use patterns, the
Town’s zoning districts encourage a mix
of uses heavily reliant on industrial and
commercial development. Currently, 80
percent of the land area in the Corridor is
zoned either Limited Industrial, Limited
Industrial B, or Industrial. Another 16
percent     of   the   land is   zoned   for
residential, and four percent for business.

Recent zoning changes from a Town Meeting in Spring 2019 removed several overlay districts and
adjusted uses in the Limited Industrial district to allow more flexibilty for the incorporation of senior
housing options. Town Meeting left one overlay district intact, which is the Mixed-Use Overlay
District that covers one property, at the corner of Route 138 and Arboretum Way. The purpose of the
Overlay District is to encourage a mix of uses that includes office, retail, and multi-family residential,
while striving to maintain residential character and the conservation of environmental features.




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Figure 19: Zoning Map

—   *:          y

ie Meetay      *,     :
| Study Area Boundary j
1) Business

General Residence
|| Industrial

Limited Industrial
{098 Limited industrial B
| Limitea incustrial c
|| Parkland and Open Space

Single Residence AA

|           Single Residence A

Single Residence B

Single Residence C

47

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Figure 19: Zoning Map




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USE REGULATIONS

The uses allowed within each of the Corridor’s zoning districts align with the district’s primary
purpose, and have translated into what we see in the buildings that have been constructed and
occupied to date. For the most part, the Single Family Districts contain mostly single and two family
homes. The Business District has several stand alone and strip center buildings with a mix of retail,
restaurants, and professional offices. The Industrial Districts contain most of the manufacturing,
research, warehouse/distribution, and flex use facilities.

                   Table 17: Use Regulations
                                                      SR            B            LI             LIB               I
                   Single Family                       Y             Y            N              N               N
                   Two Family                         N              Y            N              N               N
                   Multi-Family                       N              Y            N              N               N
                   Mixed-Use                          N              Y            N              N               N
                   Asstd/Ind. Living                  N             BA           BA             BA               N
                   Sit Down Rest.                     N             BA           BA             BA               BA
                   Fast Food Rest.                    N             BA            N              N               BA
                   Prof. Office                       N              Y           BA             BA                Y
                   Medical Office                     N              Y           BA             BA                Y
                   Hotel/Motel                        N             BA           BA             BA               BA
                   Retail Store                       N              Y           BA             BA                Y
                   Vehicle Sales                      N              Y           BA             BA                Y
                   Auto Repair                        N             BA           BA             BA                Y
                   Gas Station                        N             N            BA             BA               N
                   Car Wash                           N             N            BA             BA               N
                   Science/R&D                        N             N             Y              Y                Y
                   Manufacturing                      N             N             Y              Y                Y
                   Warehouse                          N             N             Y              Y               BA
                   Light Manufacturing                N             N            BA             BA               BA
                   Key: Y – YES, N – NO, BA – Special Permit Board of Appeals. Table does not cover all uses, only those most
                   applicable to the Corridor.
                   Sources: Canton Zoning Bylaw; RKG Associates

However, there are a few use designations across zoning districts which are worth highlighting for
further analysis. As shown in Table 17, all restaurant uses in these zoning districts would require a
Special Permit by the Board of Appeals. In a place where more restaurants are desired, the added
requirement and uncertainty of going through the Special Permit process could serve as a deterrant.
Stand-alone multi-family residential is only allowed in the Business (B), General Residential (GR) and
Central Business (CB) Districts, of which only the Business district is located in this portion of the


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Corridor. Age-restricted multi-family will soon be allowed by Special Permit in the Light Industrial
(LI) Districts per zoning passed at Spring 2019 Town Meeting. Mixed-use that includes residential and
commercial components is allowed in the Business District as well. However, there is some confusing
language in the current Zoning Bylaw under Section 8.2 Multifamily Dwellings that could be
interpreted as any multifamily development requires a Special Permit regardless of the zoning district.

Additionally, it is relatively uncommon that industrial uses are more strictly regulated in the
Industrial District than they are in the Limited Industrial Districts. Typically, the Industrial District is
more lenient on use regulations and allows heavy industry, heavy manufacturing, trucking intensive
uses, etc. In the case of Canton’s industrial use regulations, the Limited Industrial Districts allow
manufacturing and warehousing uses by right, and require a Special Permit for light manufacturing.
The Industrial District is also less restrictive on commercial uses such as office and retail stores.
Typically, those uses are considered to be more appropriate in a Light Industrial District, if permitted
at all.

DIMENSIONAL REGULATIONS

The dimensional regulations for the zoning districts along the Corridor match closely with what has
been built over time. In the residential districts at the northern end of the Corridor, single family
homes, set back from the street on larger lots, are common. Most residential structures are in the two-
to two-and-a-half-story range. Table 18 shows the dimensional regulations guiding development in
the residential districts that touch the Corridor.

 Table 18: Dimensional Regulations – Residential Districts
                                                    Zoning District
 Regulation                     SRAA               SRA          SRB                     SRC
 Min. Lot Size                45,000 SF         30,000 SF        15,000 SF         10,000 SF
 Lot Width                      200’              150’             115’              100’
 Frontage                       125’              100’             100’              100’
 Lot Coverage                   25%               25%              25%               25%
 Front Setback1                  60’               40’              30’               30’
 Rear Setback                    35’               35’              35’               35’
 Side Setback                    40’               20’              15’               10’
 Height2                         25’               25’              25’               25’

 1 60’ setback for properties along Turnpike Street/ Route 138
 2 One foot in height for every additional foot in setback, up to 40-foot max. height
 Sources: Canton Zoning Bylaw; RKG Associates

On the commercial and industrial side, dimensional regulations vary substantially. The Business
District offers the most flexibility for development by removing minimum lot size, width and frontage
requirements, and allowing for 90 percent of the lot to be covered by a structure. Part of the reason for
such flexible regulations is that the Business District zones are also found in locations closer to Canton
Center, where smaller lots and a denser development pattern necessitate flexible regulations.

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Although the Business District allows a shallower front yard setback than the Industrial Districts,
properties fronting Route 138 are still required to have a 60-foot setback.

The Light Industrial District has less flexibility than the Industrial District on lot size, width, coverage,
setbacks and height, although the use mix provides a wider range of allowable uses. Here there is a
minimum 1.5-acre lot size and a more constrained height requirement compared to the Industrial
District regulations. Table 19 highlights a 52-foot height maximum in the Industrial District by Special
Permit.


 Table 19: Dimensional Regulations – Business/Industrial Districts
                                          Zoning District
 Regulation                       B                  LI                        I
 Min. Lot Size                  N/A               1.5 Acres                  N/A
 Lot Width                      N/A                  200’                    N/A
 Frontage                       N/A                  100’                    100’
 Lot Coverage                   90%                  40%                     50%
 Front Setback1                 25’                   60’                     60’
 Rear Setback2                   6’                   25’                     10’
 Side Setback2                   6’                   25’                     20’
 Height3                        40’             40’/4 stories*          52’/ 4 stories

 1 60’ setback for properties along Turnpike Street/ Route 138
 2 35’ setback for properties abutting a residential district or use
 3 52’ height by Special Permit only in Industrial District
 *Some height exceptions granted to 52’ for LI areas with eight acres of more; see Zoning Bylaw 4.3.4
 Sources: Canton Zoning Bylaw; RKG Associates




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PARKING REGULATIONS

Another aspect of zoning that
                                          Table 20: Parking Regulations
shapes the built environment is
                                          Use Category        Canton Requirement
parking,    and    how       much    is
required for different use types          Detached Dwelling            2 spaces per unit
(Table 20). In Canton, parking            Multi-Family Dwelling        2 spaces per unit
                                          Hotel/Motel                  1 space per room
regulations for some commercial
                                          Sit Down Rest.               1 space per seat
and industrial uses are quite high        Fast Food Rest.              Determined by BoA
compared      to      most    parking                                  1 space per 250sqft on ground floor
industry standards, particularly          Retail Stores                plus 1 space per 500sqft of upper
                                                                       story space
for    restaurants,    offices,     and
                                                                       1 space per 250sqft on ground floor
industrial uses. It is also worth         Offices                      plus 1 space per 500sqft of upper
noting that parking requirements                                       story space
                                          Auto/Gas                     Determined by BoA
for fast food restaurants and auto
                                                                       1 space per 250sqft or 1 per 3
uses    and    gas     stations     are   Industrial
                                                                       employees
determined on a case-by-case basis        Mixed Use                    Sum of All Uses
by the Board of Appeals. This can
lead to uncertainty in site planning      Sources: Canton Zoning Bylaw; ITE Parking Manual; RKG Associates

and going through the approval process.


DEVELOPMENT CONSTRAINTS
Use regulations, dimensional regulations, and parking requirements all have helped shape the way
development has occurred along the Corridor. Most buildings are pushed toward the middle or rear
of their parcels due to front setback requirements and the need to accommodate parking. Building
heights tend to be two or three stories due to use constraints and height restrictions. The large parcel
size, setbacks, and parking requirements have created single structures on large lots, making it more
difficult to connect buildings visually and physically, which has had subsequent impacts upon
walkability and traffic.

In addition to zoning requirements, the natural environment has also helped to shape the Corridor’s
development pattern. Substantial wetland and water features cut into the Corridor on both sides of
Route 138, and have necessitated building placement and parking locations that avoid impacting these
natural features. Figure 20 shows the approximate location of wetland and water features along the
Corridor, and how buildings have been placed in specific locations to avoid unnecessary impacts.
These constraints have also impacted how intensely the Corridor has developed over time. Typical
FARs along the Corridor average between 0.15 for residential up to 0.31 for office buildings. Walkable,
mixed-use corridors tend to have FARs approaching 0.8 – 1.5.




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Figure 20: Development Constraints Map

C_] Study Area —
|| Buildings

Open Space

_ Wetland Adjacent

Water

RKG

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Figure 20: Development Constraints Map




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FISCAL IMPACT ANALYSIS
INTRODUCTION


A Fiscal Impact Model can be used help estimate and understand the relationship between a
community’s land use decisions and their corresponding financial impacts. This chapter details the
methodology and assumptions behind the Fiscal Impact Model for Canton and offers conclusions that
can help inform decisions regarding the future land use within the Corridor.

Different land uses have different effects on local government’s incomes and expenses. While land use
decisions also have broader effects on a community’s economy, this study focuses on direct municipal
impacts like property tax income, education expenses, public safety expenses, and others.

The fiscal impact model operates on three primary assumptions: [1] the model measures incremental
impacts to the Town of Canton; [2] the model calculates the balance of local inflows and outflows; and
[3] the model excludes revenues and expenditures unrelated to land use decisions (i.e. some one-time
line items and intergovernmental transfers).

      Incremental Impacts – Standard fiscal impact modeling recognizes there are certain fixed
       costs a community must pay for regardless of an incremental unit of housing or square foot of
       commercial space. The Town of Canton will, for example, only need to pay the salary of one
       Finance Director, regardless of any incremental development activity. These types of fixed
       costs generally do not change with new development. This analysis separated fixed costs from
       incremental costs for the purposes of understanding the actual impact of development by land
       use.

      Local Inflow/Outflow Impacts – This analysis focused exclusively on direct revenues and
       expenses incurred by the Town of Canton. Outside revenues (i.e. sales tax impacts on the State
       of Massachusetts) and expenditures (i.e. Massachusetts per-pupil education transfers) are not
       considered. This serves to isolate the true fiscal impact of land use decisions upon Canton.

      Excluded Budget Line Items – This model focuses on the most substantial revenue and
       expenditure categories from the Town’s 2019 budget. The budget numbers used within the
       Fiscal Impact Model may differ from figures in the published Town budget as some revenues
       and expenditures not related to land use were excluded. These include items such as
       intergovernmental transfers and state aid.




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KEY FINDINGS
Incremental development of all types tends to have a positive impact on municipal finances. As
new development typically has a higher assessed value per square foot than older structures, the
Town benefits from increased property tax receipts that more than offset the incremental expenses on
items like schools, safety, and general government.

While all residential development tends to provide a net fiscal benefit, denser development
patterns can have even higher fiscal benefits. By putting more property tax-generating units on a
parcel, multi-family development can quickly become more beneficial than single-family housing on
a per-acre or per-parcel basis. This is due in part to the lower student generation rates that come with
the average multi-family unit and holds true for both rental apartments and condominiums.

Walkable, mixed-use communities tend to be the most fiscally sound, while lower-density
neighborhoods tend to be the most expensive to service, especially in the long term. Extending
streets, sewer, and other infrastructure over longer distances to less-dense communities can introduce
greater fiscal stress. The character and location of new development can have a significant impact on
limiting these costs on a per-capita and per-unit basis.

Incremental commercial development also tends to have a net benefit on municipal finances. While
not generating the same level of property tax receipts as residential development, commercial
development does not demand the same level of municipal services – and, critically, no education
spending.

While retail is the most beneficial commercial use on a per-square-foot basis, industrial and office
development can also bring positive net benefits due to larger footprints and lower incremental
expenditures. The changing nature of retail could also lead to long-term volatility in the taxable value
of retail properties.




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REVENUE AND EXPENSE ALLOCATION
Before understanding how costs and revenues will be affected by different land uses in the future, it
is critical to determine how the Town’s land uses affect its budget today. The first task in constructing
the Fiscal Impact Model is to allocate the Town’s existing revenues and expenses to land use
categories. For the vast majority of budget line items, the most reliable methodology for allocating
costs and revenues is to do so based upon property values. 24 This simplifying assumption means, for
example, if residential properties accounted for 60 percent of the town’s assessed value and
commercial properties accounted for 40 percent, then a line item like the accounting department’s
salaries would be driven 60 percent by residential uses and 40 percent by commercial uses.

In Canton, this “default” or “fair share” allocation percentage is based upon 2018 property assessment
data provided by the Canton Assessors Office. In 2018, approximately 78 percent of Canton’s taxable
property value was residential; the remaining 20 percent was commercial (a further two percent was
considered undevelopable and is excluded from this analysis). Basic municipal expenses like public
works, Town government, the police department, and others are allocated in the Model based upon
this “fair share” percentage.

However, not all revenues and expenditures are split between residential and commercial units at this
rate. For example, education expenses are purely driven by residential uses; the Weights and
Measures budget line is driven by commercial uses alone. Using inputs and guidance from Canton’s
Finance Department, each relevant line item was divided between residential and commercial uses by
either the “fair share” split, an all-commercial or all-residential allocation, or a unique split based upon
other factors, as shown in Table 21.

It is worth noting that while residential land uses comprise roughly 78 percent of the town’s total
assessed value, they deliver just 65 percent of its tax levy. This is due to Canton’s decision to split its
tax rate where commercial property pays a higher rate than residential. 25


         Table 21: Revenue and Expenditure Allocation by Land Use
         Category                                                                  Residential        Commercial
         Revenues
              Real Estate Taxes 26                                                     61%                34%
              Personal Property Taxes                                                  78%                20%
              Motor Vehicle Excise                                                     91%                 9%
              Other Excise – Hotels/Meals Tax                                          78%                20%



24 Based upon previous Fiscal Impact Models and analysis by RKG Associates in Massachusetts.

25 $12.40 per $1,000 assessed value for residential, $25.77 per $1,000 assessed value for commercial. Per Canton Assessors

Department.
26 No assumption needed; value derived from 2018 Assessors’ Database.


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Penalties & Interest                      100%                0%
    PILOT                                     0%                 100%
    Fees                                      78%                 20%
    Rentals                                   78%                 20%
    Other Department Revenue                  78%                 20%
    Licenses                                  0%                 100%
    Fines and Forfeits                        100%                0%
    All Others                                78%                 20%
Expenditures
    Executive Counsel                         78%                 20%
    Town Counsel                              78%                 20%
    Human Resources Department                78%                 20%
    Planning Department                       50%                 50%
    Town Reports                              78%                 20%
    Sealer of Weights & Measures              0%                 100%
    Employee Contract Benefit                 78%                 20%
    Finance Department                        78%                 20%
    Building & Zoning                         50%                 50%
    Fire Department                           78%                 20%
    Cemetery Maintenance                      100%                0%
    Pequitside Farm                           100%                0%
    All Other Public Works                    78%                 20%
    Recreation & Playgrounds                  100%                0%
    Police Department                         78%                 20%
    Animal Control                            100%                0%
    Committees & Commissions                  78%                 20%
    Town Clerk                                78%                 20%
    Elections & Registrars                    100%                0%
    Assessors                                 78%                 20%
    Conservation Commission                   78%                 20%
    Planning Board                            50%                 50%
    School Administration                     100%                0%
    Retirement, Unemployment, and Insurance   91%                 9%
    Blue Hills Regional                       100%                0%
    Norfolk County Agricultural High School   100%                0%
    All Others                                78%                 20%
                                                     Source: RKG Associates


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INCREMENTAL REVENUES


DEFINING UNITS FOR DIFFERENT USES
The Fiscal Impact Model attempts to forecast the incremental revenues that would result from the
addition of residential or commercial property (primarily via incremental property tax receipts). The
impacts of residential development are forecasted on a per-unit basis, forecasted separately in this
analysis as single-family units and multi-family units. Commercial impacts are forecasted on a per
square foot basis for industrial, retail, and office/medical development. The per square foot method
for forecasting commercial impacts accounts for the wide range of sizes of commercial properties. A
single industrial facility could be as small as a few hundred square feet or as large as a million square
feet and would subsequently have drastically different fiscal impacts on a community if calculated on
a per parcel or per building basis.


CALCULATING INCREMENTAL PROPERTY TAX RECEIPTS
Increased property tax receipts account for most of the incremental revenues that would result from
new development. For residential properties, assessor’s data provides the average per-unit tax
receipts for Canton’s existing single-family, condominium, and apartment units. However, a newly-
constructed unit will typically have a higher value than the average existing unit. In the case of
Canton, the average single-family home constructed between 2013 and 2018 was valued 156 percent
higher than the average single-family unit built before 2013. The average apartment unit built between
2013 and 2018 was valued 136 percent higher than the average unit built before 2013. For new
condominiums, the Model uses a conservative estimate of 20 percent. This is due to the recent
preponderance of age-restricted units which have a lower assessed value than new unrestricted
market-rate condominiums. Using these three new construction premiums, one can estimate the
average incremental property tax receipts from an additional unit of housing: approximately $10,030
per year for a new unit of single-family housing, $3,200 per year for a new apartment unit, and $4,100
per year for a new condominium unit (Table 22).

For commercial properties, the model conservatively assumes that newly-constructed space is worth,
on average, 10 percent more than the average existing space.




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Table 22: Fiscal Impact Revenue Generation, 2019
 Single-Family, Condominium, and Apartment Homes


                                        Single-Family Homes          Condominiums               Apartments
           Estimated Existing Units             5,424                     1,459                     1,831
      Existing Assessed Value Total        $2,813,000,000             $402,000,000             $346,000,000
      Average Assessed Value/Unit             $518,600                  $275,300                  $189,100


  New Construction Value Premium                 56%                       20%                       36%
       New Construction Assessed
                                              $809,000                  $330,400                  $257,700
                      Value/Unit


 Marginal Property Tax Income per
                                               $10,030                    $4,100                   $3,200
                             Unit
        Sources: RKG Associates, US Census American Community Survey 2013-2017 Estimates, Canton Assessors Database


CALCULATING OTHER INCREMENTAL REVENUES
Though far less significant, there are other variable revenue sources that would be affected by most
incremental housing or commercial space. Income from excise taxes, licenses, permits, fines, and other
miscellaneous revenue sources would all increase proportionally with additional development.
Payment in Lieu of Taxes (PILOT) receipts would only increase with commercial development, while
revenues from most penalties and fees would likely be increased only by residential development.

For commercial development, these revenue impacts are fair-shared between industrial, retail,
office/medical, and all other uses in accordance with their respective property values (aka “fair
share”). This fair share of commercial values results in the following splits: 50 percent industrial, 11
percent retail, 33 percent office/medical, and 6 percent “all other” commercial, which includes golf
clubs, parking, and other uses.

For residential uses, the impacts are split between single-family, condominiums, and apartment units
on a per capita basis (this methodology was also used for forecasting most residential expense impacts
as well). This is because unlike in commercial properties, where the highest value land use (retail)
results in the highest variable revenues and expenditures, an incremental resident generates largely
the same fiscal impacts whether they live in a single-family unit or a multi-family unit, property taxes
aside. With this in mind, incremental revenues like excise taxes, fines, fees, and others are calculated
on a per-capita basis and then converted to per-unit impacts based upon Canton’s average occupancy
of each residential type: 2.81 persons per unit for single-family homes, 1.58 persons per unit in




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condominiums, and 1.81 persons per unit in apartments. 27 The projected average incremental
revenues per unit are shown in Table 23.


 Table 23: Revenue Allocation by Residential Use
                                      Residential Share                           Incremental Revenues
                                                    Existing                            Condo
                                  Existing                             1-Family                        Apartment
                                                    Revenue
                                  Revenue                                Unit            Unit             Unit
 Category                                          per Capita
 Property Tax Levy               $71,922,000            -              $10,030          $4,100            $3,200
 Excise Taxes                    $9,560,000           $361              $1,020           $570              $650
 All Other Revenue
                                 $4,213,000           $136               $380            $220              $250
 Sources
 Total Revenue                  $85,696,000                             $11,430         $4,890            $4,100
                                                                   Sources: RKG Associates, Canton Assessors Database

Non-profits, which are not included in this analysis, contribute to the Town’s fiscal health in their own
ways. While parcels owned by non-profits do not pay property taxes, non-profits do bring economic
activity to the Corridor, as their visitors and employees spend dollars at local businesses, provide
services to residents, and contribute to the vitality of Canton as a place to do business.

INCREMENTAL EXPENSES
The incremental municipal expenses of additional residential and commercial uses are calculated in a
similar manner to that used for revenues: per capita impacts converted to housing unit impacts for
residential, and per square foot impacts based upon assessed values for commercial development.
One important exception within the incremental expenditures analysis is education spending.


ADJUSTING FOR “EFFICIENCY”
Most municipal expenses have “scale”. This means that, for example, a 10 percent increase in
population does not equal a 10 percent increase in expenditures. A community would not likely hire
an additional accountant if the population went from 10,000 to 10,005, and it would not need to
increase its capital budget to build a new school if student enrollment went from 2,000 to 2,010. That
said, a sound fiscal impact analysis must assign a nominal incremental impact to each new resident
or business; even though resident 10,005 might not require an additional accountant to be hired,
resident 15,000 might.

In the Fiscal Impact Model, this adjustment is made via an assumed “efficiency” factor. A 100 percent
efficiency for a budget line item would mean that a 1 percent increase in the number of residents (or
commercial square feet) would result in a 4 percent increase in the expenses for that line item. This


27 US Census, American Community Survey 2013-2017, Tenure by Units in Structure B25032; Canton Assessors Database


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situation is rare in Canton. Instead, expense line items were given efficiency adjustments between 10
and 84 percent. Adjustments were made based on conversations with Town officials, reviewing
individual department budgets, and experience completing similar fiscal impact analyses in similarly-
sized municipalities. The Canton Public Schools line item was assumed to have an 84 percent
efficiency – relatively high, because incremental students in the system do indeed have a substantial
impact on variable education costs. The efficiency figure was determined via an examination of
Canton Public Schools’ annual budget. Approximately 84 percent of the district’s direct annual
spending (excluding state aid and other transfers) was deemed to be variable, including teachers’
salaries, supplies, and other line items. This assumption is conservative – an additional student in the
system would likely not lead to a change in staff salaries – but aims to capture potential long-term
changes that would occur with residential development. The efficiency adjustments as used in the
model are shown in Table 24.


             Table 24: Efficiency Adjustments by Expense Line Item
                                                                             Efficiency
             Category                                                       Adjustment
                  Executive Branch                                              20%
                  Finance Department                                            20%
                  Building & Zoning                                             30%
                  Fire Department                                               75%
                  Public Works                                                  20%
                  Youth Services                                                50%
                  Parks & Recreation                                            20%
                  Police & Animal Control                                       75%
                  Committees & Commissions                                      20%
                  Town Clerk & Elections                                        20%
                  Assessors                                                     20%
                  Conservation Commission                                       30%
                  Planning Board                                                30%
                  Health Department                                             30%
                  Council on Aging                                              30%
                  Veterans Services Department                                  30%
                  Library                                                       30%
                  Debt Service                                                  10%
                  Trash Collection                                              30%
                  School Department                                             84%
                  All Others                                                    20%
                                                                      Source: RKG Associates


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CALCULATING INCREMENTAL EDUCATION EXPENSES
Just as property tax receipts were by far the largest driver of incremental revenue from additional
development, education spending is the largest factor in calculating municipal expense changes.
Estimating the per-unit impact on local education funding involves the following steps:

1) Isolate local education spending from other sources. Of the published $45.2 million-dollar
   Canton Public Schools (CPS) budget in 2019, $36.8 million was estimated to be local spending,
   with the remainder coming from Chapter 70 state aid, charter school transfers, and other one-time
   transfers.

2) Determine the local per pupil education cost. With a total of 3,272 reported students in the district
   in the 2018-2019 school year, the local per pupil cost was estimated at $11,250 per year.

3) Determine the average student generation rate for single-family and multi-family housing
   units. Conversations with CPS administrators revealed that the school district had not tracked
   student generation rates of newly-constructed homes. While it is likely that much of Canton’s
   newly-enrolled student population is driven by turnover in existing single-family housing, studies
   in other Massachusetts municipalities offer guidelines for the impacts of newly-built housing
   units.

    Studies of student generation rates within the past two years in Framingham, MA and Plymouth,
    MA indicated that each new single-family home added 0.43 and 0.44 school-aged children,
    respectively. Said another way, just less than one in every two new single-family homes added
    one school-aged child. The model for Canton assumed a single-family student generation rate of
    0.43.


    Studies in Framingham, Plymouth, and Marlborough, MA found that newly-constructed
    condominiums had a much lower student generation rate, ranging from 0.10 to 0.26. The
    generation rate of 0.26 children per condominium appeared to be an outlier, based upon
    refurbishment of a large existing supply of aged condominiums. Canton Town staff provided a
    local analysis performed in 2014, part of an impact study for a development proposal. That
    analysis found a student generation rate of 0.11 students per condominium, excluding age-
    restricted condos. Given the analysis’ local context and the fact that it sits within the range of
    similar analyses, this Model assumed a condominium student generation rate of 0.11.


    Apartments tend to generate students at a range of rates, depending upon a unit’s number of
    bedrooms, rent, and even marketing plan. This Model assumed a student generation rate of 0.14
    for new apartments, near the midpoint of estimated rates in Marlborough, MA (0.06), Natick
    (0.11), Framingham (0.14), Ashland (0.17), and Newton (0.22).


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4) Apply an “efficiency” adjustment to account for variable vs. semi-variable expense items. As
   discussed in the previous section, an estimated efficiency of 84 percent means that a 1 percent
   increase in student enrollment results in a 0.84 percent increase in local education spending.

The resulting incremental cost per unit is $4,082 per year per single-family unit, $1,040 per year per
condominium unit, and $1,323 per year per student per apartment unit. Commercial development has
no effect on school spending.


CALCULATING OTHER INCREMENTAL EXPENSES
All other incremental expense line items were calculated in the same way as detailed in the
“Calculating Other Incremental Revenues” section of this chapter. Each line item was separated into
residential and commercial drivers by assessed value, then translated into a per capita figure for
residential uses and a per square foot figure for commercial ones. The per capita cost was then
multiplied by the average per-unit occupancy for each type of housing and given an efficiency
adjustment. Commercial costs were adjusted by the same efficiency percentage, then allocated to
industrial, retail, and office/medical uses based upon the assessed values of each.

CONCLUSIONS
Tables 25 and 26 show that on average, new development in Canton tends to have positive fiscal
impacts. On the residential side, a new single-family house can have a positive impact of nearly $5,700
per year, while an apartment unit can deliver around $1,710 per year on average. The average
condominium unit may deliver a net benefit of $2,915 per year. This means that even the smallest
multi-family condominium development (a two-family or duplex) has a more positive average impact
on Town revenues than the average new single-family unit ($2,915 x 2 = $5,830, versus $5,700), and
likely does so while consuming a smaller quantity of land.

While this model estimates incremental cost impacts for the average additional square foot or unit of
development, the character and location of new development have significant effects on their fiscal
impact and viability. A new unit of housing located in a low-density area of Canton may require
investment to push new roads, sewer, water, and other infrastructure further into undeveloped spaces
while serving fewer residents or workers. New development in denser, more central locations can
result in a fraction of the costs on a per-capita or per-unit basis by taking advantage of existing
infrastructure and serving more residents or workers with the additional investment that may be
required.

The fiscal impacts of commercial development vary significantly by type and size. New retail space is
the most fiscally beneficial per square foot, due to its relatively high assessed values, but presents
long-term risks with the changing nature of the retail market. Office and medical space have similar
fiscal impacts on a per square foot basis and may introduce less risk. Industrial development,
meanwhile, tends to have low impacts on a square foot basis, but can have larger fiscal benefits due

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to the large footprints that industrial facilities often require. Industrial spaces tend to have the lowest
impact on municipal spending as they typically require relatively few public services to operate.




 Table 25: Fiscal Impact per Residential Unit Estimates
 Single-Family, Condominiums, and Apartment Homes


                                         Single-Family                                   Apartment
                                                             Condominium Homes
                                            Homes                                          Homes
 Revenues
      Marginal Property Tax Income          $10,032                 $4,097                  $3,195
             Marginal Excise Income          $1,017                  $573                    $653
   Marginal Fees, Fines, Permits, etc.        $383                   $216                   $246


         Marginal Revenue per Unit           $11,432                $4,885                  $4,095


 Expenditures
       Government & Administrative            $849                   $478                   $546
                Fire, Police & Related        $804                   $453                    $516
                Canton Public Schools        $4,082                 $1,040                  $1,323


      Marginal Expenditure per Unit          $5,735                 $1,970                  $2,385


  Average Net Fiscal Impact per Unit         $5,697                 $2,915                  $1,710




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Table 26: Fiscal Impact per Commercial Square Foot Estimates
Marginal Commercial Properties


                                            Industrial &            Office &    All Other
                                                           Retail
                                            Warehouse               Medical    Commercial
Revenues
Marginal Property Tax Income                   $1.88       $4.06     $3.78       $3.30
Marginal Excise Income                         $0.10       $0.23     $0.21       $0.18
Marginal Fees, Fines, Permits, etc.            $0.08       $0.17     $0.16       $0.14


Marginal Revenue per Sq. Foot                  $2.07       $4.46     $4.15       $3.62


Expenditures
Government & Administrative                    $0.12       $0.25     $0.24       $0.21
Fire, Police & Related                         $0.07       $0.15     $0.14       $0.12


Marginal Expenditure per Sq. Foot              $0.19       $0.40     $0.38       $0.33


Average Net Fiscal Impact per Square Foot     $1.88         $4.05     $3.77      $3.29




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RECOMMENDATIONS
CREATION OF “PLACE” VERSUS “CORRIDOR”
Traveling north to south along this stretch of Route 138, one of the primary challenges is the
disconnected nature of development and the impact that it has upon the spatial organization of the
Corridor. This development pattern has led to a long series of individual buildings, each with their
own street access points, their own parking, deep setbacks, inconsistent signage and landscaping, and
somewhat randomized uses up and down Route 138. Recognizing the desire of both residents and
businesses to create a more connected Corridor, the idea of creating defined “spaces” within the Study
Area becomes an important concept to consider.

Today, the Corridor functions in a highly linear manner, reflecting the automobile-centric way in
which it was developed. The physical separation between land uses and lack of alternative
transportation options necessitates vehicular travel to access housing, jobs, restaurants, childcare, and
more. Today, many competitive communities are planning and zoning for places where more than
one use or activity can be accommodated in the same building or near one another. This creates a
connected place where fewer car trips are required, residents can live closer to work, and local
businesses can expand their customer base locally instead of drawing from the outside the
community.

  Figure 21




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This idea of creating place is driving communities and developers to change the way they think about
single-use, auto-oriented spaces. Places that integrate different uses tend to be more fiscally beneficial
to both the community and the property owner, are better for small businesses, and tend to have lower
transportation impacts than the same amount of development spread out across a larger area.
Communities across Massachusetts have sought to retrofit industrial parks, office parks, and retail
centers, integrating different uses to create places where people can live, work, and conduct business
without traveling great distances or sitting in traffic. Towns like Burlington, Lexington, and Natick
have worked to convert single-use areas and corridors to multi-use places, including the following
examples:


 Natick Mall, Natick, MA                                              Hartwell Avenue, Lexington, MA




Integration of housing, entertainment, and a grocery                Considering updating zoning to allow for mixed-
store where former retail anchors went out of business.             use, housing, and retail/restaurants along the
Framingham is considering implementing zoning that                  Hartwell Avenue office/industrial corridor.
matches Natick’s to encourage seamless development.

        3rd Avenue, Burlington, MA




       Integration of housing, retail, restaurants, a grocery store, hotel, and offices just off Route 3 and
       Route 128. Marketed as a very different experience than the Burlington Mall across the street,
       this area provides multiple uses in a very walkable environment.


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ROUTE 138 CORRIDOR TODAY

Unlike reinvented areas of communities like Natick and Burlington, the Route 138 Corridor does not
have a notable identity or consistent brand. The built environment, from the buildings to the signage
to the public realm, lacks any unifying factors that indicate one has entered the Corridor. Some of the
issues contributing to the limited sense of place include deep building setbacks, parking along the
street, a lack of sidewalks and landscaping, and a wide range of signage types. Figure 22 shows a
typical cross section of Route 138 and some of the issues identified, many of which can make walking
uncomfortable, and spending time discouraged.


 Figure 22: Route 138 Corridor Challenges




Fortunately, there are several steps the Town can take in partnership with other public and private
entities to improve the short- and long-term attractiveness and competitiveness of this Corridor.
Recommendations for how to improve the Corridor have been categorized in three groups: Land Use
and Zoning, Transportation Connectivity, and Identity and Business Recruitment.




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LAND USE & ZONING
To begin addressing the concerns of residents and businesses, the Town should focus early efforts on
changing existing zoning to encourage the creation of more cohesive districts, with appropriate use
mixes, improved site design and layout, and parking regulations that better match today’s standards.
To start, the Town should consider the creation of a new Mixed-Use (MU) base zoning district that
could be applied to parcels at the northern and southern gateways of the study area. These two
locations today include parcels that are already zoned Business (B), which allows commercial uses
and some mixed-use development, but features dimensional and parking standards that may not be
appropriate for future development along the Corridor. The Business district was originally designed
for application in Canton
Center,     and   any     changes
made to the Corridor’s B               Recommendation: Create a new Mixed-Use (“MU”)
districts would then impact            zoning district applied to parcels at the northern and
parcels with the same zoning           southern gateways to the Corridor.
elsewhere in town. Therefore,
                                          The new MU district should encourage a mix of commercial
a new Mixed-Use district,
                                          and residential uses in order to provide the retail and
designed specifically for this
                                          restaurant amenities employees said the Corridor lacks, as
Corridor, would allow and
                                          well as potential locations for workers to live. The Town
encourage          development
                                          should consider the following specifications as it sets forth
consistent        with          the
                                          defining the parameters of the new district:
community’s vision for Route
138.                                         Mixed-use development should be defined as both
                                              office over first-floor retail/restaurant space, and
The goal of the MU district
                                              residential over first-floor commercial space.
would      be to create new
                                             Establish a square footage threshold for mixed-use
mixed-use gateways at both
                                              development whereby a project of a certain size would
ends of the Corridor, where
                                              be allowed as-of-right, but anything exceeding the
retail,    restaurants,     offices,
                                              threshold would require a Special Permit.
services, and residential uses
                                             Multi-family housing should be allowed via Special
could locate near one another.
                                              Permit.
This      would    help      create
                                             Fast food restaurants with a drive-thru should be
smaller,     walkable       activity
                                              minimized, while fast casual and sit-down restaurants
centers which could support
                                              should be allowed as-of-right up to a certain size.
amenities for employees and
                                              Restaurants that exceed the established size threshold
residents in the Corridor. The
                                              would need to seek a Special Permit.
Town should also consider
                                             Other allowable uses should include retail, office,
zoning         incentives        to
                                              medical office, breweries, gym/fitness, maker space,
encourage parcel aggregation
                                              and co-working space, among others.
in the MU district. Many

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existing parcels are small, contain multiple structures, and are under separate ownership. It may be
challenging to create the type of mixed-use development envisioned if development can only occur
on smaller, individual parcels. Structuring the zoning in a way that provides a density bonus, opens
up an additional level of allowable uses, streamlined permitting, or parking reductions for developers
that aggregate parcels could be an effective strategy.



Figures 23 and 24: Existing and Proposed Zoning Maps




Current Zoning in the Study Area                         Proposed Zoning Changes for the Study Area
                                                         including the addition of new Mixed-Use (MU)
                                                         gateway districts and changing the Industrial
                                                         zoning district to a combination of MU and
                                                         Limited Industrial (LI)

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INDUSTRIAL DISTRICTS

The second recommended zoning district change is to simplify and clarify the industrial districts that
exist along the Corridor. Today, there are three industrial zoning districts along the Corridor:
Industrial (I), Limited Industrial (LI), and Limited Industrial B (LIB). As discussed earlier in the report,
few differences exist between the three zoning districts, and the LI and LIB districts allow many of the
uses a property owner, business or developer may want to see. A positive feature of the existing
industrial zoning districts is that the LIB district covers most of the parcels that front Route 138, while
the LI district covers parcels
that do not front on Route 138.
This bifurcation will allow the         Recommendation: Simplify and clarify the Corridor’s
Town      to     make      strategic    industrial districts, eliminating today’s Industrial (I)
changes to the use table and            base zoning.
dimensional          table       that
                                        Suggested use table changes for the LI and LIB districts
structure each district in a
                                        include:
way that responds to its
location. For example, as the                 Limiting heavy manufacturing to the LI district and
LIB district fronts Route 138, it              allow light manufacturing as-of-right in both districts.
may be desirable to allow                      Light manufacturing is very different than what it was
buildings closer to the street,                when zoning was first enacted. This change could
locate parking to the sides and                make it easier and more inviting for manufacturing
rear of buildings, increase                    businesses to come into Canton.
landscape      standards      along           Limit fast food with a drive-thru in the LIB district.
Route     138,       and     update            Encourage fast casual and sit-down restaurants.
allowable uses. For parcels in                Consider restaurants a Special Permit in the LI district
the LI district that are less                  but allow them as-of-right in the LIB up to a certain
visible   from       Route       138,          size. This is similar to the concept described for the
standards may be different                     MU district above.
and allowable uses may be                     Allow professional and medical office uses in the LIB
more flexible. The changes to                  but keep as a Special Permit in the LI district.
the LI and LIB districts create               Allow assisted living/independent living only in the
a situation where the existing                 LIB district. Save parcels in the LI district for industrial
Industrial     (I)    district     is          and commercial users unless market conditions
probably no longer needed in                   substantially change. This will also reduce the risk of
this Corridor.                                 use conflicts over time.

As illustrated in Figures 23
and 24, a portion of the existing I district could be changed over to the new MU district, while
portions further from the two gateway areas could become part of the LI district.



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DIMENSIONAL TABLE

To encourage a more cohesive and visually inviting development pattern the Town should consider
coupling any zoning district changes with tweaks to dimensional regulations. The proposed MU
district will require a brand- new set of performance standards including lot size, width, coverage,
setbacks, and height. As this proposed district abuts single-family residential districts, some care
should be taken to limit heights where appropriate, in addition to possible expanded rear setbacks or
visual buffers between parcels. Overall, dimensional standards in this district should respond to its
smaller parcel sizes, the stated intention to create a mixed-use and walkable environment, and the
creation of value through zoning to encourage parcel aggregation and redevelopment over time.


  Recommendation: Couple zoning district changes with tweaks to dimensional
  regulations.

             Table 27: Proposed Dimensional Regulations
                                                     Proposed Zoning Dimensions
                  Requirement                 MU               LIB                LI
             Min. Lot Size                 10,000 SF       20,000 SF         65,000 SF
             Lot Width                        150'            200'              200'
             Frontage                         100'            100'              100'
             Lot Coverage                     70%             50%               40%
             Front Setback                     25'             60'               30'
             Rear Setback                      15'             25'               25'
             Side Setback                      10'             25'               25'
                      1
             Height                       35'/3 story         40'/3 story            52'/4 story
             1 – increase height in the MU district when parcels are aggregated to an acre or more.




Within the industrial zoning districts, a first change could be to create specific dimensional regulations
for the LIB zone. These standards should recognize the nature of the allowable uses, the size of parcels,
and the fact that these parcels front Route 138. Within the LI district, there should be more flexibility
to increase building heights and decrease setbacks to create a more walkable environment along
secondary streets like Dan Road or New Boston Drive. Table 27 provides some guidance for potential
dimensional regulation changes.

The Town may also wish to couple zoning changes along the Corridor with some design standards
for buildings, landscaping, parking, and signage. Illustrations of the types of buildings, materials, and
placement of elements on a site could be helpful for property owners or developers looking to invest
in the Corridor.




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PARKING

The provision of parking – and where it’s located – can have a major effect upon an area’s ability to
develop a cohesive identity and sense of “place”. In the Corridor, parking requirements have created
a situation where lots are not fully occupied yet consume acres of valuable space. Additionally, the
placement of many surface parking lots directly adjacent to roadways has created an environment
that prioritizes car storage over landscaping and pedestrian and bicycle infrastructure that could
improve the Corridor’s aesthetics. In many instances, the first thing one sees while visiting the
Corridor is parking lots. Figure 25             Figure 25: Parking Figure Group
shows a figure ground map where
parking lots are colored in red, and
buildings in gray. The high required
parking ratios in Canton, particularly
within industrial zoning districts,
have led to an excessive amount of
land dedicated to surface parking.
This land could otherwise be used for
buildings,         on-site        amenities,
stormwater retention, or kept as open
space or landscaped areas to help
with water runoff and infiltration.

Revising parking ratios and directing          Surface parking lots
the placement of surface parking               are shown in red,
would        help      with         corridor   building footprints are
                                               show in gray.
redevelopment         and         improving
aesthetics. As redevelopment occurs
along the Corridor, the Town should
also consider working with property
owners to encourage shared parking
solutions, in which parking assets
count towards the required spaces of
several adjacent but different land
uses.   This   would         be   especially
appropriate where proposed uses
may have different hours for parking
demand. For example, residential
uses and office uses are likely to have
divergent peak hours for parking
demand       and     may      make     good


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candidates for shared parking. Other considerations to be considered include seasonal fluctuations in
 parking demand for certain land uses, as well as those properties that may not see significant daily
 parking demands but do need space for the long-term storage of tractor trailers and other heavy
 equipment.

 Nationwide industry standards for parking ratios have been adjusted over time, based upon studies
 of similar development types that measured parking constructed and parking utilization. Table 28
 provides some suggestions for parking ratio adjustments based upon today’s industry standards.


Recommendation: Consider revising parking requirements to match today’s mobility
patterns.

Table 28: Parking Requirements
Principle Use                       Current Required                       Proposed Requirement
Detached Dwelling      2 spaces per unit                              2 spaces per unit

Multifamily Dwelling   2 spaces per unit                              1 space per bedroom

Hotel/Motel            1 space per room                               1 space per room

Sit Down Restaurants   1 space per seat                               1 space per 3 seats

Fast Food              Determined by BoA                              1 space per 4 seats

                       1 space per 250 sqft of ground floor, plus 1
Retail                                                                4 spaces per 1,000 sqft
                       space per 500 sqft of upper story space
                       1 space per 250 sqft of ground floor, plus 1
Office                                                                3 spaces per 1,000 sqft
                       space per 500 sqft of upper story space
Auto/Gas               Determined by BoA                              Determined by BoA
Industrial             1 space per 250 sqft or 1 per 3 employees      1 space per 1,000 sqft
Mixed Use              Sum of All Uses                                Create a Shared Parking Calculation



 Figure 26 presents an example of how reduced parking ratios could help spur infill development on
 existing lots or allow more square footage to be built when properties redevelop over time. The
 presented example, on Dan Road, shows how revised parking requirements can unlock the potential
 for infill industrial buildings on either side of the primary structure, with some smaller out lot
 buildings fronting Dan Road. By adding in new buildings, the remaining parking could be
 reconfigured and define fewer points of ingress/egress to Dan Road, reducing driver and pedestrian
 confusion. Adding sidewalks to Dan Road could also better define the pedestrian zone as separate
 from the vehicle parking area.




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Figure 26: Example of Parking Lot Infill on Dan Road




Infill industrial buildings




Infill out lot buildings               Add sidewalks, consolidate driveways




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SIGNAGE

Many residents pointed to the signage along Route 138 as a significant driver of the Corridor’s
perceived lack of identity and cohesion. The Corridor’s existing, highway-oriented signage is old and
outdated, and many business signs are faded and no longer legible. If drivers must slow down
significantly to read signs and look for business locations, it can contribute to unsafe travel conditions
or unnecessary slowdowns in traffic. The Corridor would benefit greatly from a consistent signage
plan with well-defined standards for sizes, materials, heights, and placement locations. The Town
should take care to balance the value of signage to a business with new regulations on size and
aesthetics.

 Figure 27: Signage Examples Along Route 138




  Recommendation: Develop a set of standards for signage and offer an incentive –
  like a one-time, matching grant – to encourage current property owners to update
  their signs accordingly.


To address some of the signage issues in the Corridor, the Town may wish to
revisit the current sign bylaws to identify any inconsistencies, outdated
language, or design standards that need to be updated. The Town may also
wish to create a specific set of sign design guidelines for this
Corridor so that future sign changes that
may occur are consistent with the design
theme the Town deems desirable. Lastly,
to incentivize existing property owners
and business owners to update their signs,
the Town may wish to offer a one-time

                                              Wayfinding and branding signage examples.

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matching grant to help reduce the cost of sign replacement.

Signage can also be used to identify and brand a corridor or place. As this Corridor begins to
transform, the Town may wish to partner with local businesses to establish a brand and a signage
package that matches that brand. Gateway signage could provide a signal to people that they have
arrived in the Corridor, and define its most high-visibility intersections as part of a “placemaking”
strategy.

TRANSPORTATION & CONNECTIVITY
Today, the Route 138 Corridor is dominated by private vehicles and delivery trucks, and the
development pattern along the Corridor reinforces the necessity to drive. The lack of multi-modal
transportation options severely limits residents, employees, and visitors from arriving or getting
around by any means other than an automobile. Throughout the planning process participants
emphasized the importance of reducing congestion, improving safety, and ensuring that people can
get around without having to rely on a car or truck. Integrating a series of transportation
improvements that provides enhanced mobility options would recognize and acknowledge the
different ways people move through the Corridor and throughout Canton. The following sections
discuss possible improvements to Route 138 and the secondary roads that provide access to
development off Route 138.


VEHICULAR IMPROVEMENTS

Both residents and businesses noted the impact that traffic congestion has on the Corridor and the
ability to get employees, customers, and goods to the area. The congestion and lack of access
management creates safety challenges for entering and exiting vehicles, as well as vehicles attempting
to make left turns along Route 138. The grade changes along the Corridor can be particularly
challenging in icy or snowy conditions when vehicles are unable to traverse hills while stopped in
traffic. Fortunately, MassDOT is currently working on conceptual plans for the stretch of Route 138
from Milton to Stoughton, including the Study Area. At this stage in the design process, MassDOT
has identified conceptual improvements that include a center turn lane to ease conflicts with left
turning vehicles, a new signal at New Boston Drive, and pedestrian and bicycle improvements
(discussed later in this section). Figure 28 shows potential improvements for the Corridor as identified
in this Study as well as in the ongoing MassDOT Plan.


  Recommendation: Engage with and support ongoing MassDOT initiatives that aim
  to bring a center turn lane, additional stoplight, pedestrian and bicycle
  infrastructure to the Corridor.




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TRANSIT IMPROVEMENTS


 Recommendation: Partner with the MBTA and/or Corridor businesses to examine
 solutions that improve transit connectivity – especially to Canton’s two MBTA
 Commuter Rail stations.


Canton is fortunate to have two MBTA Commuter Rail stations, but neither are connected to the Route
138 Corridor by buses or shuttles. This means a lack of options for workers or residents who are
driving today but would otherwise consider transit alternatives if connections existed. To this end,
the Town should work with the MBTA on identifying ways to bring bus service back to the Corridor,
and to connect it with the Commuter Rail stations to support commuter options. In lieu of this type of
service, the Town could consider partnering with businesses and property owners in the Corridor to
fund a shuttle service that could connect residents and employees to the Commuter Rail stations and
other key locations. There are many examples around the Greater Boston region of towns and
employers joining to fund transit options. The Middlesex 3 Coalition offers a similar service for
employees in eight cities and towns along the Route 3 corridor. CrossTown Connect in the I-495 region
provides shuttle services for both residents and employers in seven towns. Figure 29 shows a
potential transit route and long-term stop locations; stops should only be implemented and located
where pedestrian infrastructure like sidewalks has been built to keep users safe.




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Figure 28: Vehicular Improvements




                                    Center Turn Lane




                                    New Signal at New
                                    Boston Drive




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Figure 29: Transit Improvements




                                  Long-Term Stop
                                  Locations




                                  Transit Route




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