Some 16,000ft of unused offices in Bartholomew House, Brighton, will be transformed into co-working spaces available for hire.
The 40 new offices can accommodate teams of up to 70 people and will include five meeting rooms which can be booked by the hour.
The city council has a £33 million financial blackhole and is owed £44 million by the i360.
Councillor Jacob Taylor, deputy council leader and lead for finance, said: “This exciting new work space in the thriving heart of the city provides an excellent opportunity for businesses.
“Our partnership with Freedom Works will create needed work space in the city, support local economic growth while also providing the council with a new source of income.
READ MORE: Brighton’s i360 ‘should not have been financed with public money’
“Local government finances across the country are under strain as we struggle with rising inflation, increased demand and cuts to our core funding by central government.
“By adopting innovative approaches to generating income we can protect council services while supporting the local economy.”
Freedom Works, which is operating the Bartholomew House offices, already runs eight shared office spaces in Sussex.
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