#3 LYRASIS line of credit for DSpace development and fundraising updatedevelopment
Kristi introduces the opportunity to have extra funds from Lyrasis for DSpace 7 paid development, which was already discussed in previous meetings. The Steering Group revised the proposal and agrees to accept it. There is a draft agreement for a line of credit from Lyrasis that would guarantee available funds for paid development on DSpace 7. Funding is $100,000 (no need to use all of it) and is repeatable three times, up to 300,000$, with interest of LIBOR+4.0% per year, which is covering Lyrasis' cost of money.
Kristi reminds that it would be good to have the same experienced developers who have worked at DSpace 7 so far, so the work was proposed to Atmire and 4Science. She reports from the discussion group, commissioned by the SG, composed by Kristi Park, Jyrki Ilva, Lieven Droogmans, Susanna Mornati, Tim Donohue, and Laurie Arp. The group discussed some practical issues, such as how development work would be structured and how payments would be made. Atmire and 4Science agreed to make staff available (3,25 FTE between them). Work will start in February with two-week sprints. Work is already underway under the beta release schedule so there is a question about remuneration for work already done in January.
Robert explains that Lyrasis tried to make this proposal non-profit friendly, to allow the community to move forward. The line of credit will allow the community to rely on stable resources from the service providers.
Allan has an issue about the signature of a contract with DSpace which is not a legal entity. Kristi has the same issue but she could sign as an individual, she needs to work out this detail. Jirky says this should not constitute a problem in his institution.
Discussion: should DSpace become an incorporated company? Or should Lyrasis manage the contracts?
Kristi thinks Lyrasis is acting in good faith but her organization may be more formal, so a solution has to be found, Robert and Jirky and herself will work on that. Robert will bring information on how ArchiveSpace was constituted.
Pascal still has some doubts about the opportunity of getting a loan at all. If it is not guaranteed that the DSpace community is not able to refund the loan, it may run into some risks such as Tim not being full time for DSpace.
Kristi agrees there is always a risk involved in opening a line of credit but it allows to have money available before fundraising is completed, and it is coming in (Robert will update about it).