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At the Tropicana, a former glass-domed public swimming pool next to the Maas River, a group of entrepreneurs are turning the space into a hub for sustainable business. “I was just driving by this building, and I thought, Hey, this is a big, empty greenhouse that we have in the middle of the city,” says entrepreneur Siemen Cox. “Let’s do something there.”

Originally, Cox considered using the massive space for aquaculture and vertical farming, but the owner wanted to use the former swimming pool area for something else. So Cox moved into the basement–a damp, humid area perfect for growing mushrooms. His startup, Armenta Black Diamond Silver Stackable Ring ipp1M9
, collects coffee grounds from coffee shops around the city, making collections on cargo bikes and in electric vehicles. Then it cultivates mushrooms in the coffee.

Inside former dressing rooms for swimmers, racks of plastic bags–filled with a mix of coffee and mushroom spores–hang from the ceiling for several weeks at a time in the dark, before moving to “fruiting” rooms. Everything smells like coffee. When the mushrooms are ready for harvest, the company sells them to local restaurants. (It also makes mushroom-growing kits for consumers–who kept asking the startup how they could donate their own coffee grounds–to use at home.)

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The business likely would not have been possible without Rotterdam’s cheap rents. “The first three to four months we were in here for free,” says Cox. “There was nothing here–there was one place with running water in the entire building. Then for one year we had a sort of anti-squatting fee of 250 euros per month. We had the time to develop our business model, our business case, and expand the investments in the facility. If we would have had to pay top rent from the beginning, we would have never been able to develop.”

Like other entrepreneurs in the Netherlands, Cox also could have used the country’s social safety net if the startup hadn’t gone as planned. “The socialist democracy here really helps spur innovation,” says Steve Kennedy, a British professor who heads a program in sustainable innovation at Rotterdam’s Erasmus University.

“Entrepreneurs know they can set up a business and they can fail and there’s a good safety net,” he says. “Innovations can be more radical because you have this kind of socialist model behind it.”

Cox, who had worked in financial services for 15 years, felt comfortable taking a leap into an unproven business. “When I was working in financial services I was making a lot of money, but I wasn’t happy or content anymore,” he says. “Now I’m hardly making money or just very little money. But if I become a millionaire tomorrow, this is what I will stay doing. It’s really a sort of calling. It feels very good to do this.”

Spurred on by the success of Rotterzwam, the building has become the center of a bigger initiative called Blue City , meant for entrepreneurs working in the “blue economy”–a name for the next step in the circular economy, where businesses don’t just reuse their own products, but turn waste from other industries into new products. Besides mushrooms growing in coffee waste, there’s also “stone paper,” made from ground-up building waste. One successful startup that was in the building (until recently expanding) turns wasted food into soups and juices .

Inside the former swimming pool, the first businesses are already working together. A woodworker uses beeswax from a beekeeper to finish his furniture; carbon dioxide from the mushrooms helps feed algae for a company growing algae. A restaurant upstairs sends its organic waste to the mushroom company.

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It’s the kind of entrepreneurial experimentation that has happened, to some extent, in other postindustrial cities that have a lot of cheap warehouse space. In Rotterdam, though, it has unusually strong support from the city.

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