Toronto Officials Question Alphabet Unit's Ambitions for 'Smart City' -- Update
June 24 2019 - 7:19PM
Dow Jones News
By Vipal Monga
TORONTO -- A unit of Alphabet Inc. said its proposed "smart
city" in a Toronto neighborhood would create thousands of jobs and
cut greenhouse-gas emissions, but met some resistance from the
project's government sponsor over the scope.
Alphabet's city-building unit, Sidewalk Labs LLC, won a bid in
2017 to build a sustainable neighborhood on Toronto's waterfront
and on Monday unveiled its first detailed plans for the
project.
Initially billed as a neighborhood built "from the internet up,"
the project calls for using sensors embedded in traffic lights and
garbage bins to track residents and respond to their needs. On
Monday, Sidewalk proposed using buildings made all of wood to cut
down on construction-based emissions, sidewalks that expand to
create more room for pedestrians after rush hour, and a thermal
grid that uses sewers, factories and server farms to provide
heating.
Sidewalk said it could invest as much as 1.4 billion Canadian
dollars (US$1.06 billion) to build the neighborhood, seed an
innovation institute and venture-capital fund supporting local
startups, fund a timber factory outside Toronto, and finance the
expansion of Toronto's light-rail transit. If all its plans come to
fruition, Sidewalk said it could create 44,000 jobs in the region
and build 35,000 housing units, 40% of which would be below market
rates.
The initial details revealed on Monday met resistance from
Sidewalk's government sponsor, which needs to approve the
proposal.
Sidewalk's plans go beyond the scope of the project initially
proposed by government organizations, said Steve Diamond, the
chairman of Waterfront Toronto, a Canadian government entity that
selected Sidewalk as a partner for the project in 2017.
"There are proposals where it is clear that Waterfront Toronto
and Sidewalk Labs have very different perspectives about what is
required for success," he said.
Mr. Diamond said Sidewalk's bid was limited to a small 12-acre
parcel of land on the waterfront named Quayside. The company acted
prematurely on Monday by proposing that the city look beyond that
limited area to create a 190-acre district incorporating ideas
developed in the smaller section, he said.
Mr. Diamond also questioned Sidewalk's demands that Toronto
expand its transit network in a bid to make the project viable.
"They are also not commitments that Waterfront Toronto can
make," he said.
Dan Doctoroff, Sidewalk's chief, said in an interview that he
wasn't surprised by Waterfront Toronto's comments. "It would be
ridiculous to assume every issue would be resolved," he said. "They
have questions and concerns and I think that's entirely appropriate
in their role providing oversight."
Waterfront Toronto will now consult with the public and
government authorities and negotiate details with Sidewalk. The
plan will need final approval by the boards of Waterfront and
Alphabet before proceeding, which could happen as early as
2020.
The Toronto waterfront development is Sidewalk's biggest project
since the business was launched in 2015 by Mr. Doctoroff, a former
investment banker who became deputy mayor for economic development
in New York City and then chief executive of Bloomberg LP.
Waterfront Toronto announced the undertaking in 2017 at an
unveiling attended by Canadian Prime Minister Justin Trudeau and
Alphabet's then-executive chairman, Eric Schmidt.
After the initial fanfare died down, Sidewalk ran into
opposition from local residents, concerned by how the company, with
its ties to Google's parent company, would handle data.
Privacy watchdogs questioned who would control sensitive digital
information as residents are tracked by sensors. Also at issue are
ownership rights over any products or techniques developed at the
site and sold elsewhere.
To address the privacy and intellectual-property issues,
Sidewalk proposed to create an independent data trust, sanctioned
by government bodies, to oversee the collection and use of sensor
data. The company also won't sell personal data or use it for
advertising, a spokeswoman for Sidewalk said. "Of course, this is a
proposal that government can choose not to implement, and our
commitments would remain," she said.
Some critics feel that Sidewalk's proposal goes too far in
recommending changes to governance structures. "It's not their job
to do this. This is supposed to be done by government," said Bianca
Wiley, co-founder of Tech Reset Canada, an advocacy organization.
"Sidewalk Labs is coloring outside the lines."
The company also proposed that Waterfront Toronto and Canadian
federal, provincial and municipal governments would get 10% of
profits for 10 years from intellectual property developed in the
neighborhood.
The company said it would move Alphabet's Canadian headquarters
to the area to act as an anchor tenant.
Write to Vipal Monga at vipal.monga@wsj.com
(END) Dow Jones Newswires
June 24, 2019 19:04 ET (23:04 GMT)
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