Item Coversheet

Resolutions - C7  R




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:June  6, 2018
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE TO FURTHER EXPLORE THE COLLABORATION BETWEEN THE CITY AND WEWORK, AND TO RESEARCH OTHER POTENTIAL PARTNERSHIPS WITH COWORKING AGENCIES.


RECOMMENDATION

Administration recommends accepting the recommendation made by the Finance and Citywide Projects Committee to further explore a partnership with WeWork to create a new location, potentially in North Beach or the 41st Street corridor, and to work collaboratively on a marketing strategy to offer similar discounts and incentives such as those offered to small businesses in the City of Miami. Further, the Committee recommended that Staff research other potential partnerships with coworking agencies within Miami Beach. 

 

ANALYSIS

This item was referred to the Finance and Citywide Projects Committee at the April 11, 2018 City Commission Meeting and was first discussed at the Finance and Citywide Projects Committee on April 20, 2018. At that time, the Committee requested that Staff further research the partnership between the City of Miami and WeWork and begin discussions with WeWork on creating a similar agreement. In addition, the Committee requested that Staff examine the co-working model and analyze other agencies similar to WeWork.

 

This analysis was prepared and discussed during the May 18, 2018 Finance and Citywide Projects Committee.

 

Recently, the City of Miami partnered with WeWork, a co-working company, for marketing and promotions for the discounts offered by WeWork within said locations to better support local business entities and entrepreneurs based and/or who have relocated to Miami. This partnership allows businesses to take part in a reduced monthly fee which encourages them to continue their business in Miami. 

 

There are many different co-working spaces and models represented in the South Florida region. A majority of coworking spaces share the same financial model: monthly membership fees based upon usage of the space (dedicated desk, private office space, drop-in and on-the-go). However, there are industry specific models along with nonprofit coworking spaces that cater specifically to philanthropic and socially conscious entities. Below is a brief summary of some of the coworking spaces in Miami Dade County and their unique offerings. Currently, only Buro and WeWork are represented in the City of Miami Beach. 

 

Nonprofit/Socially Focused:

Center for Social Change

Tedge Mindful 

EcoTech Visions 

 

Innovation and  Technology:

Cambridge Innovation Center (CIC)

The Lab

The Building 

 

Design, Art, Creative Makers:

Moonlighter

MADE at the Citadel

Miami Ironside 

 

Traditional Business Development:

Pipeline 

Buro 

WeWork 

 

As the shared work space trend continues to evolve and grow, new business models are emerging throughout the Country. In New York City, a new coworking company named Spacious has recently started to explore how they can activate and use restaurants during daytime hours that are typically only open at night as office space.  University libraries along with public libraries have also begun to explore building in coworking and maker spaces into their facilities that would allow residents and students to use them at a reduced or free rate. 

 

City Staff also informed the Committee that we are in the beginning phase of discussing partnership opportunities with WeWork and developing services to support our local small business community. WeWork is very interested in developing a discount program at the two South Beach coworking spaces and has expressed a desire to increase their footprint within Miami Beach.  Concurrently, Staff is working with WeWork to help identify other potential areas in which to launch on Miami Beach, including North Beach and the 41st Street Corridor -- with a longer lens focus on creating a marketing partnership once a new location is brought online.

 

The Committee provided further direction to Staff to continue to work with WeWork to develop a creative partnership between the agency and the City of Miami Beach similar to their partnership with the City of Miami, focusing on attracting and sustaining small businesses to Miami Beach. Additionally, the Committee requested that City Staff reach out to Buro, a co-working company located in Sunset Harbor, to determine if they are interested in forging a similar partnership. 

 

The Committee also requested that City Staff continue to discuss with WeWork opening new locations in either MidBeach or North Beach, and to further research other co-working companies and models that may be interested in expanding or relocating to Miami Beach. 

 

 

CONCLUSION

Administration recommends approving the Resolution, accepting the recommendations made by the Finance and Citywide Projects Committee to further explore a partnership with WeWork including a potential new location in North Beach or the 41st Street corridor, to support incentives and a marketing campaign with WeWork to attract new businesses, and to research other potential co-working agencies located in Miami Dade County. 

KEY INTENDED OUTCOMES SUPPORTED
Maximize The Miami Beach Brand As A World Class Destination

Legislative Tracking
Tourism, Culture and Economic Development

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