'Innovate Newport' To Pay Boston Firm To Consult: City

NEWPORT, RI—Innovate Newport will pay a Boston firm, Workbar, to help move its business incubator ahead, Newport's communications director said Friday. But no information was provided about the value of the contract. Patch has asked for the financial information and will update this story.

In Friday's press release Newport City Manager Joe Nicholson is quoted saying the connection with Workbar is progress.

“This is an important milestone for Innovate Newport,” he said “The expertise in the coworking industry that Workbar brings will be invaluable as we look to grow Newport’s innovation economy."

Coworking usually refers to sharing office space among people not employed by the same company. Some coworking spaces are free, while others are paid. The price for Newport's coworking spaces has not been announced. A link in the press release that promised information about rates did not include any rates.

Scott Gibbs, of the Economic Development Foundation of Rhode Island, however, said previously "our pro-forma also assumes a rate of $300/month for the co-work space, which is consistent with other co-work facilities to our north. Again, the market is the ultimate deciding factor. The co-work market in Rhode Island (i.e. comparables) is very thin, so Innovate Newport will effectively set the market."

Nicholson went on to say,"I’m confident this will be the first of several significant partnerships that will not only benefit the members of Innovate Newport, but the region at large.”

"Innovate Newport," the name being given to the former Sheffield School on upper Broadway near One Mile Corner, has been envisioned as a magnet for entrepreneurs and movers and shakers. The building is being retrofitted "into a 33,000-square foot coworking, private office, and meeting space designed to spark innovation and build community," the city said. Construction is expected to be completed soon, and the city is looking for tenants, who could move in as soon as February. But so far, the city has provided little information about leases.

Over the summer, Tuni Schartner was hired as director of Innovation and Entrepreneurship. According to the Newport Daily News, her 18-month position is being funded by the Van Beuren Charitable Foundation.

According to Schartner, who was quoted in Friday's press release, all of Workbar's members will be able to use the coworking space at the Sheffield School, and Newport members will be able to use Workbar spaces in Boston, Rhode Island and the Massachusetts South Shore.

Previously, the city announced the Newport County Chamber of Commerce would be the first tenant, but the city has not released any information about the financial agreement. A second tenant was also mentioned but not named. However, the chamber has been described as a partner in the venture. Erin Donovan-Boyle, executive director of the Newport County Chamber of Commerce, previously said her organization will be giving up its current space on Valley Road but declined to say how much the chamber was paying for space in the school.

The chamber's non-profit entity actually signed the deal with Workbar.

“Innovate Newport, powered by Workbar, not only helps to connect the Newport and Boston markets a bit more, but it will also enable this facility and its members to have access to state of the art technology and proven programming strategies to support the emergence of an entrepreneurial community,” Donovan-Boyle said in the press release. “We look forward to this partnership and are thrilled that such a well-established and successful operator of co-work facilities in the greater Boston area sees the potential and value of our very own Innovate Newport.”

Tom Shevlin, the city's communications director, said the city is not on the hook for the Workbar contract.

"The Workbar contract represents a consulting and services agreement between Innovate Newport and Workbar, with all costs associated with the agreement being paid through Innovate Newport’s operating budget," he said. Rents and membership fees will be used to fund the budget, he said.

"The agreement was signed by the Newport County Development Council, the 501(c)3 non-profit arm of the Newport County Chamber of Commerce and one of three partner organizations spearheading the development of Innovate Newport." (The others are the Economic Development Foundation of Rhode Island and the City of Newport.)

"Specifically, Innovate Newport has agreed to contract with Workbar for consulting and support services, along with the use of proprietary software to power its operational needs," Shevlin said.

"Again, the contract is between the non-profit arm of the Newport County Chamber of Commerce, which has taken the lead on the operational side of the project, and Workbar."

Staff Photo: Margo Sullivan