Orlando Sentinel

A LOCAL ENTREPRENE­UR compains to the Orlando mayor’s office about what he says is favoritism toward one Orlando co-working space. Meanwhile, a Miamibased co-working company is coming to Central Florida, too.

- By Marco Santana msantana@orlandosen­tinel.com or 407-420-5256

A local entreprene­ur has taken his complaints about what he says is favoritism toward one Orlando co-working space straight to the mayor.

Dennis Pape, who runs the Catalyst space in downtown Orlando, told Mayor Buddy Dyer and the city council Monday that $150,000 destined for a specific group would be better used if spread around or bid competitiv­ely.

Orlando Tech Associatio­n, Canvs co-working space, FireSpring Fund and Starter Studio were set to receive the money, city officials said earlier this month, with the city expecting to finalize an agreement with the groups by Oct. 23. Dyer spokeswoma­n Heather Fagan said at the time that no other groups would be allowed to bid on the award. A meeting between city staff and Pape is scheduled this week.

Pape “had very thoughtful comments at city council,” Fagan said Tuesday. “You never make everybody happy, but you have to figure out what you think is best for the ecosystem. It’s not an easy balance to strike.”

The city typically does not give money to for-profit businesses, Fagan said, unless the company can match grant awards.

The four groups are all set up as non-profit organizati­ons.

“This is not an ask to fund operations but to fund and support programs,” Canvs Executive Director Donna Mackenzie said.

Fagan said Dyer asked staff to consider Pape’s comments when they explore a potential plan.

Pape’s remarks came Monday during a budget workshop that will help determine where the city’s money goes in the 2017-18 fiscal year.

“There are other tech-accelerato­r programs that have had significan­t success and other tech-related organizati­ons and events providing significan­t programmin­g,” said Pape, who has run Catalyst since it opened in 2015.

Canvs has 501(c)4 status as a tax-exempt social welfare organizati­on, under which it must not be organized for profit and must operate “exclusivel­y to promote social welfare” and that it cannot operate like a for-profit business.

Pape called Canvs’ qualificat­ions for 501(c)4 status into question, saying the fact that Canvs sells desk space means it’s running a for-profit business.

A tax filing showed that in 2015 Canvs received $466,574 in revenue, from grants, membership­s and “other revenue.” Overall, the group claimed a surplus of $23,889. Mackenzie said that money covers part of the next year’s operations and programmin­g costs.

Pape asked that the city formally file a legal opinion on whether Canvs has adhered to its status, while asking how Canvs has differenti­ated itself from other co-working spaces. The city did not immediatel­y respond to that request.

Co-working spaces are shared offices that host multiple companies, a strategy that keeps rates down. The spaces generally bring in experts to speak with resident companies or the general public about business topics including funding, social media and bookkeepin­g.

Canvs has three locations — two in downtown Orlando and one in Winter Park.

In July, it received $50,000 for what the city called a one-year pilot program that will help train entreprene­urs in the Parramore district.

In documents requesting the funding at the time, Canvs officials said that they serve around 225 companies who represent 100 companies. Overall, the site has hosted 550 workers since its inception, the documents said.

Pape said Catalyst and other co-working spaces in town have similar missions. Catalyst hosts about 30 companies and Pape says about 90 have gone through the program since its debut.

Dyer said the city awarded Orlando Tech Associatio­n and FireSpring $90,000 during the last fiscal year.

Fagan said the city council would consider the proposal at an Oct. 23 meeting only if its members felt that enough thought and discussion had been put into it.

“They want to make sure they get it right,” she said.

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