Postmedia file photo HO / THE CANADIAN PRESS “Now, (if) at the end of the day people don’t want us to do something beyond Quayside, that’s entirely fair. It doesn’t mean we’ll want to do Quayside, though,” Doctoroff said.“I’m not using the term deal breaker, but what I will say is that we do not believe just at the scale of Quayside that Waterfront Toronto’s priority objectives can be achieved. That’s just a reality.”The current development started in 2017 with a request for proposals from Waterfront Toronto, a federal-provincial-municipal agency tasked with revitalizing the city’s lakefront lands.I’m not using the term deal breaker, but … we do not believe just at the scale of Quayside that Waterfront Toronto’s priority objectives can be achievedSidewalk CEO Dan Doctoroff Alphabet Inc.’s Sidewalk Labs released its sprawling masterplan for Toronto’s eastern waterfront on Monday, but the scope of the company’s ambitions, which extend well beyond the five-hectare Quayside district it was initially tasked to develop, are raising concerns with the federal-provincial-municipal agency overseeing the project.In its 1,500-page, four-volume development plan, Sidewalk Labs proposed to invest $1.3-billion to kickstart the real estate portion of the plan, which would feature tall wooden buildings and various smart city features, such as sensors, flexible streetscapes and robotic freight tunnels to reduce traffic.But it also indicated that any plan was dependent on also developing a nearby parcel of land known as West Villiers, where it said Google Inc. — Sidewalk’s sister company — would move its Canadian headquarters during the second phase of the project, sometime in mid-2020.That, in addition to identifying four other parcels of land, totalling dozens more hectares, into which it might eventually scale any successful experiments from Quayside, elicited a reaction from Waterfront Toronto. Five potential sticking points in Sidewalk Labs’ masterplan for the Toronto waterfront Google critic Roger McNamee urges Toronto to abandon ‘surveillance capitalism’ project Sidewalk Labs ‘Most people don’t like change’: CEO of Sidewalk Labs says criticism of project was inevitable In a letter distributed to media, Waterfront Toronto chairman Stephen Diamond said the scope of the real estate development was broader than anticipated, and Sidewalk is asking for major commitments from government, including regulatory changes and a promise to build transit through the proposed neighbourhood.“Based on our initial review of the MIDP, there are a number of exciting ideas that respond to challenges we face, particularly related to environmental sustainability and economic development,” Diamond wrote. “There are also proposals where it is clear that Waterfront Toronto and Sidewalk Labs have very different perspectives about what is required for success.”In response to Diamond’s letter, Sidewalk CEO Dan Doctoroff told the Financial Post that Waterfront Toronto laid out a series of key objectives at the very beginning of the process, and both organizations have always acknowledged that greater scale than just Quayside might be necessary to achieve ambitious goals for housing, climate-positive urban development, clean technology and urban innovation.Sidewalk CEO Dan Doctoroff. The MIDP lays out multiple business models, with 11 potential sources of revenue.All in all, Sidewalk is proposing up to $1.3 billion in funding and financing, which they say could induce up to $38 billion in investment by 2040.The core of that is $900 million in upfront capital for the real estate component, which will include dynamic data-powered streetscapes and buildings constructed entirely out of specially manufactured wood, produced out of an $80-million factory owned by Sidewalk Labs.For the first couple of phases of the project, Sidewalk Labs proposed that it would act directly as the property developer, and would buy or lease publicly owned land at a below-market price — discounted because Sidewalk is committing to meet a series of urban development objectives.Eventually, the same building techniques and technological systems would be deployed by other developers in a broader IDEA District throughout the Toronto port lands, with Sidewalk Labs acting as an advisor and a partner to the government agency specifically mandated with developing the larger district.Toronto’s Eastern Waterfront in an undated handout photo. “We’ve learned a lot. We’ve become a lot more sensitive to the uniqueness of this city,” Sidewalk CEO Dan Doctoroff said. These are all potential problems for Waterfront Toronto, according to the letter Diamond published Monday.“Waterfront Toronto has told Sidewalk Labs that the concept of the IDEA District is premature and that Waterfront Toronto must first see its goals and objectives achieved at Quayside before deciding whether to work together in other areas,” Diamond wrote.One aspect of the development that Sidewalk does not plan to earn money from is data. When the proposed project was originally announced in the fall of 2017, it was meant to be a new neighbourhood built “from the internet up” with high-tech sensors and data-driven community management.Sidewalk Labs said in the MIDP that it would like to see an independent urban data trust established by the government to regulate all data collection in the development. The data trust would receive applications for all urban data sensor systems.The data trust would then make anonymized data equally available to anybody, so Sidewalk Labs would not have any special commercial advantage from proprietary data collected in the area.In releasing the MIDP, Sidewalk emphasized that the company has consulted with tens of thousands of Torontonians in developing the plan, and incorporated the feedback they received.“We’ve learned a lot. We’ve become a lot more sensitive to the uniqueness of this city,” Doctoroff said.“To their credit, Torontonians challenged us at every step and that made the plan better.”At least a few Torontonians were willing to give their reaction to the plan before it was even released; the grassroots #BlockSidewalk campaign issued a statement on Monday, pre-emptively objecting to the scope of the proposal.“This project was never about a small 12-acre site on Toronto’s waterfront, and the plan Sidewalk Labs has presented us with is proof of that,” the #BlockSidewalk news release said.“This is about Google trying to get access to hundreds of acres of Toronto’s prime waterfront public land. This is as much about privatization and corporate control as it is about privacy.”• Email: jmcleod@nationalpost.com | Twitter: