CAMBRIDGE — A new tech hub in the city’s downtown inches closer to reality after Cambridge council agreed to give it $1 million over the next five years.
The new downtown tech hub is made up of a Conestoga College research hub and a nonprofit, Grand Innovation Centre.
“I know it’s a lot of money,” Coun. Mike Mann said at Tuesday’s council meeting. “But it’s money well spent.”
Grand Innovation Centre is a new nonprofit that hopes to kick-start a sustainable research and technology hub in Cambridge.
It’s a part of the shiny new Gaslight District project set to revitalize a portion of downtown Galt. The tech hub will take over the former Tiger Brand factory in the new development.
Tim Ellis, chief executive officer of Grand Innovation Centre, said it is set to open its doors in September and it will need the full $350,000 in funds next year to staff the new hub.
“Eight months is a really short runway for all the activity,” he said.
“The first year is going to be critical to show economic development,” he told council. Ellis ran Waterloo’s Accelerator Centre for several years.
But not everyone was willing to just hand the cash over.
Coun. Nicholas Ermeta suggested docking $50,000 from the 2017 amount.
“This community is hurting — $50,000 is a small amount … I’d like them to work a little harder to raise that (somewhere else).”
The college asked for $100,000 each year for a five-year period and Grand Innovation Centre asked for $250,000 each year for two years.
“Because the city is hurting we need more jobs, we need places to live downtown,” Coun. Pam Wolf said in rebuttal to Ermeta’s request to dock funds. “We will get our money back.”
Barbara Fennessy, vice-president of applied research at the college, added the college will get funds from the federal government and from private sector investors for the smart automation expansion and a new cybersecurity zone in the new tech hub.
“Our model is a little bit different,” Ellis explained.
“We want to be self-sustaining … over the course of hopefully five years.”
The tech hub first asked Cambridge for money at a budget committee meeting last month.
The funds for the project won’t come out of the city’s tax base, city manager Gary Dyke said. It will come out of the city’s industrial reserve fund that has about $11 million to 12 million in it.
Cash is generated for the fund through land sales in the city’s industrial park.
“It’s meant to be used for this type of investment,” Dyke added.
“It’s still taxpayers money no matter where it’s sitting,” Coun. Jan Liggett said.
“The college won’t be paying taxes … the money is not coming back.”
James Goodram, director of economic development, explained that while the college portion is nontaxable, everyone else in the hub will pay property taxes.