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Waterloo pitches open data incubator
September 9, 2014 | Paige Desmond | Waterloo Region Record | Link

WATERLOO — Waterloo city councillors want to go into the data business — but they would have to spend about $3.8 million to do it.

Monday, city staff unveiled a proposal to convert the Carnegie library at 40 Albert St. into a data centre, at an estimated cost of $3.8 million. That's equal to an approximate 6.3 per cent tax increase.

The idea is to create an incubator that could attract entrepreneurs in the field of open data. Open data is a movement to make government information more easily accessible.

But the plan, which has been worked behind the scenes up until Monday, raised concerns for at least one councillor who questioned the strength of the business plan.

"I like the idea of an incubator, but we need to have a better understanding as to what the financial implications are," Coun. Karen Scian said. "I hope we don't lose sight of those really important red flags that are flying around."

Scian said there's no indication as to whether the project would generate revenue, be charitable and fall somewhere in between.

Councillors voted unanimously to spend about $234,000 on architectural and design work with the remaining project costs to be considered during the 2015 budget process.

The goal is to create a city-run incubator that focuses on open data. It would be branded The Data Mine. It would help entrepreneurs develop and then help them relocate, staff said.

"You're looking forward and looking far forward taking a heritage piece of our community and turning it into a jewel of the future," Coun. Mark Whaley said. "Hopefully, it's something that we can deliver on but this is a good first step."

If the city was unable to cover operating costs by renting space to tenants, it would cost taxpayers about $540,000 between 2015 and 2024 to operate the centre, a staff report said.

Staff project about six short-term tenants and up to two long-term tenants within the building.

Coun. Jeff Henry said regardless of what the library is ultimately repurposed into, the city must maintain the designated heritage building so spending the $234,000 is good start.

"We have a responsibility to the past and future to make sure it is maintained," Henry said.

Ahead of pitching the project to council, staff sought letters of support from community members and received them from several, including Kitchener-Waterloo MP Peter Braid, Waterloo Public Library, three University of Waterloo departments and Wilfrid Laurier University.

According to a staff report, the data centre would serve as a home to startups developing open data projects.