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Table of Contents 152 SAINT GEORGES TERRACE PTY LTD applicant for the unconditional grant of a special facility licence (works canteen) WEWORK PERTH Levels 32-38, 152 St Georges Terrace, Perth PUBLIC INTEREST ASSESSMENT Public Interest Assessment WeWork Perth Table of Contents 1 Introduction and background 2 Applicant’s details and background 2 2 Locality 5 Nature and character of the Locality 6 Who lives and works in the Locality 11 3 Manner of trade 13 Membership agreement 13 The premises 14 Liquor services 18 Proposed trading conditions 18 4 Sections 5 and 46 and Regulation 9A 18 5 Harm or ill-health – section 38(4)(a) 19 At risk groups and sub-communities 19 Social health indicators 22 Strategies to be implemented to minimise harm or ill-health 24 6 Impact on amenity – section 38(4)(b) 25 Nature and character of the local community 25 How the proposed premises will fit into the amenity 25 Outlet density 26 Consultation 26 7 Offence, annoyance, disturbance or inconvenience – section 38(4)(c) 27 8 Tourism, community or cultural matters – section 38(4)(ca) 27 9 Other matters 28 Security and safety 28 Harm minimisation 29 10 Conclusion 29 3465-8608-4877_1163393, v.1 Public Interest Assessment WeWork Perth 1 Introduction and background 1.1 This Public Interest Assessment (PIA) supports the application by 152 Saint Georges Terrace Pty Ltd for the unconditional grant of a special facility licence (SFL), for the prescribed purpose of works canteen, in respect of premises situated at levels 32-38 152 St Georges Terrace, Perth to be known as WeWork Perth. 1.2 This PIA addresses all relevant aspects of the public interest in accordance with both the Liquor Control Act 1988 (WA) (Act) and to the extent relevant, the licensing authority’s Public Interest Assessment policy1 (PIA Policy). This PIA also addresses the Liquor Control Regulations 1989 (WA) (Regs). 1.3 This PIA should be read in conjunction with the accompanying Legal Submissions dated 27 September 2019 and the other formalities, supporting material and correspondence to be lodged by the applicant. 1.4 The applicant seeks the grant of the SFL to authorise the supply of liquor at an office canteen type facility currently being established at levels 32-38 152 St Georges Terrace, Perth, to the people who work there and their guests. Full details of the proposal are set out further on in this PIA. 1.5 WeWork Perth is expected to be ready to commence operating in or around September 2019. Determination of the application is, therefore, sought to be expedited. Applicant’s details and background 1.6 The applicant is an Australian incorporated company. All of the issued capital in the applicant entity is held by WeWork Australia Pty Ltd, which is a wholly owned subsidiary of WeWork Companies Inc, an organisation founded and based in the United States of America (individually and collectively described as WeWork). WeWork’s head office is in New York. 1.7 WeWork provides shared office workspaces and related support services for a variety of small to large businesses, under a membership structure, to co-exist in a professional office setting. Further details of WeWork’s services and facilities are provided elsewhere in this PIA. 1.8 WeWork was founded in 2010 with a primary mission of fostering a community attitude within the workplace. Since then WeWork has built shared workspaces across the globe, including significant expansion recently.2 1 https://www.dlgsc.wa.gov.au/department/publications/publication/public-interest-assessment-policy. Last amended 3 October 2018 2 http://www.nydailynews.com/life-style/real-estate/wework-alternative-working-home-swanky-buildings-nyc-article- 1.1044412?pgno=1#ixzz2e46Iipo5 3465-8608-4877_1163393, v.1 2 Public Interest Assessment WeWork Perth 1.9 WeWork’s first location was in New York’s Soho district. WeWork has grown significantly since its inception3. WeWork’s membership base has grown globally by over 100% every year since 20144. 1.10 Globally recognised US companies have engaged with WeWork for the provision of carefully designed, serviced office spaces, including JP Morgan, Goldman Sachs Group and the Harvard Corp. As at 1 June 2019, 40% of WeWork’s memberships were with organisations with more than 500 employees (ie enterprise members), double the 20% as at 1 March 20175. WeWork expects enterprise to continue to be its fastest growing membership type6. 1.11 WeWork currently has 802 locations spread over 124 cities, including elsewhere in Australia.7 Most of those premises include a liquor service for the workers there. 1.12 WeWork has just recently entered the Western Australian market. Welcome to Perth, a beacon of financial and commercial activity on Australia’s West Coast. Here, WeWork’s shared office spaces provide businesses everything they need to succeed. Specialized workspaces keep teams productive; custom art and indoor greenery enhance employee engagement. Professionals in retail, trade, technology, and the arts call this city home—and its geographical location also attracts companies expanding overseas.8 A city rich with natural resources, business in Perth exploded during the nation’s gold rushes. Today, the city is a leader in international trade, boasting an emerging technology scene and thriving arts community. In tune with this evolution, WeWork’s coworking spaces support established companies and startups alike. High-speed internet and friendly onsite staff take care of daily operations; free-flowing coffee and comfortable furniture keep your team happy and refreshed. If you’re looking for flexible agreements and amenity-rich coworking spaces, WeWork’s serviced offices in Perth will deliver. 1.13 The following are examples of two of WeWork’s clients/customers and their WeWork experiences: 3 The We Company. (2019). Page 66 of Form S-1 Registration Statement under the Securities Act of 1933. Retrieved from https://www.sec.gov/Archives/edgar/data/1533523/000119312519220499/d781982ds1.htm#toc781982_10. 4 The We Company. (2019). Page 66 of Form S-1 Registration Statement under the Securities Act of 1933. Retrieved from https://www.sec.gov/Archives/edgar/data/1533523/000119312519220499/d781982ds1.htm#toc781982_10. 5 The We Company. (2019). Page 65 of Form S-1 Registration Statement under the Securities Act of 1933. Retrieved from https://www.sec.gov/Archives/edgar/data/1533523/000119312519220499/d781982ds1.htm#toc781982_10. 6 The We Company. (2019). Page 65 of Form S-1 Registration Statement under the Securities Act of 1933. Retrieved from https://www.sec.gov/Archives/edgar/data/1533523/000119312519220499/d781982ds1.htm#toc781982_10. 7 https://www.wework.com/locations 8 https://www.wework.com/l/perth-- WA?utm_campaign=1740574491&utm_term=69848721322&utm_content=338987759687&utm_source=ads- google&utm_medium=cpc&gclid=EAIaIQobChMI-8LEi4OT5AIVmYRwCh2CSgCdEAAYASAAEgK0VPD_BwE&gclsrc=aw.ds 3465-8608-4877_1163393, v.1 3 Public Interest Assessment WeWork Perth 1.13.1 Standard Chartered Hong Kong, which offers personal and business banking services, attempted to drive different business ventures in the field of digital innovation by investing in start-ups and piloting new business models. These were done in an attempt to improve customers’ banking experiences. The company had the ninth floor in the Standard Chartered Tower in Hong Kong, but it needed an overhaul to inspire creativity and foster collaboration. WeWork created the “eXellerator Lab” for the company which constituted the environment change needed including flexible classrooms, different types of meeting rooms and a large lounge. Liam Gilligan, head of the eXellerator Lab, was impressed with WeWork’s services. He said “the time frame that we asked WeWork to operate to was really tight. Everyone was impressed at the ability to deliver within that.”9 Furthermore, Alex Manson, global head of Standard Charter Venture stated “The eXellerator in Hong Kong lets us bring ideas, skills, and, importantly, individuals—clients, fintech entrepreneurs, colleagues from the bank— together to enable innovation.”10 1.13.2 Pabst Brewing Company, a 175-year-old brewery in the USA, wanted to continue to develop its brand over time. With multiple locations across the United States, the company was looking to avoid the remoteness of some locations and bring a closer sense of community within Pabst. This led WeWork to provide Pabst with a Global Access program enabling Pabst to have access to WeWork’s entre network of workspaces in the US. The rollout started with 11 remote workers in 5 different cities. The results have been outstanding, with WeWork becoming Pabst’s go-to workspace. Ashley Swygert, Vice President of Commercial Strategy and Field Sales at Pabst said “all of the WeWork spaces are super-nice and very inviting. It is awesome to be able to interact with so many different people, which helps me to stay motivated and inspired.”11 Matt Bruhn, general manager of Pabst, states “What we are doing with WeWork is the future of how many businesses our size will look at real estate” and that they will be eager to expand their partnership with WeWork in the future.12 1.14 Perth stands to benefit greatly from the bespoke WeWork model which will enable Western Australian businesses to share office space in a modern professional environment made fit for modern purpose to a very high standard and supported by tailor-made facilities management services. WeWork Perth will offer a superior level of business support, including the opportunity for innovative networking and collaboration between businesses. The proposed liquor service will be a modest and ancillary feature, which will enhance and complete the suite of WeWork services to be 9 https://www.wework.com/ideas/standard-chartered-case-study 10 https://www.wework.com/ideas/standard-chartered-case-study 11 https://www.wework.com/ideas/pabst-brewing-company-case-study 12 https://www.wework.com/ideas/pabst-brewing-company-case-study 3465-8608-4877_1163393, v.1 4 Public Interest Assessment WeWork Perth made available to the businesses and workers in the premises.
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