TITLE
Recommendation to authorize City Manager, or designee, to execute all necessary documents and technical amendments with WeWork, a privately-held real estate and office share company based in New York City, NY, to provide a work space for the City’s Business Navigators Program, for a period from January 1, 2017 through December 31, 2019, at no cost. (Citywide)
DISCUSSION
On December 15, 2014, the City of Long Beach (City) was awarded $3,000,000 in funding from the Bloomberg Philanthropies to develop and implement a City Innovation Team (i-team), to investigate and develop strategies that improve local economic development. As part of the initial investigation, City departments identified the need for Business Navigators (Navigators) to serve as liaisons between the City and entrepreneurs to help navigate the business startup process.
On August 2, 2016, the City Council approved an agreement with the Department of Veterans Affairs (VA) Non-Paid Work Experience (NPWE) program to provides service-connected veterans with the opportunity for quality work experience in a governmental organization, and to serve as Navigators with the Department of Economic and Property Development (EPD). Navigators and staff from the i-team and EPD are now developing the curriculum and training to help local entrepreneurs connect with business support programs, and navigate the licensing and permitting process.
A key element of making Navigators accessible to entrepreneurs is to locate them in places where entrepreneurs congregate. WeWork is a fee-based co-working space for small business owners and entrepreneurs that offers desks, offices, conference rooms, and common spaces to entrepreneurs who may not be able to afford their own facilities. Located at 100 West Broadway, WeWork has offered to provide a City Navigator with one shared “hot desk” workspace in a common area, at no cost to the City for up to six months at a time. This is valued at $350 per month or $2,100 for the six-month period.
Navigators would provide on-site consultation to entrepreneurs about the City’s business licensing and permitting process, coordinate educational classes, and refer entrepreneurs to business support services both inside and outside City departments. The City Manager is requesting authority to execute an agreement with WeWork to accept the “hot desk” at no cost and for City staff to provide in-kind support to entrepreneurs located at WeWork not to exceed the total value of the agreement, for the three-year period of January 1, 2017 to December 31, 2019.
This matter was reviewed by Deputy City Attorney Amy R. Webber on November 28, 2016 and by Assistant Finance Director Lea Eriksen on November 23, 2016.
TIMING CONSIDERATIONS
City Council action is requested on January 17, 2017, to begin locating Navigators at the co-working space in Spring 2017.
FISCAL IMPACT
There is no fiscal impact to the City for participation in the WeWork Business Navigators program. The City will receive one “hot desk” for one veteran Navigator for up to six months at a time, at no cost to the City. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF
ECONOMIC & PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER