In late April, a six-year-old digital startup called Journatic struck a deal with a 165-year-old newspaper company to take over its online community news operations. When the deal was reported on hyperlocal watchdog site Street Fight, commenters hit the fan.

One in particular, named “Fedge”, pretty much summed up the outrage, saying simply: “So much for integrity in journalism.”

Welcome to Hyperlocalville, Journatic!

What raised so many hackles was that Journatic, a Chicago-based company founded in 2006, is doing journalism on the cheap. The deal with Tribune Company was to take over its five-year old TribLocal operations, which were the beleaguered media conglomerate’s attempt to secure a local-news beachhead in its backyard. TribLocal was staffed with expensive, full-time Trib reporters and editors, but Journatic promises efficiencies around data-driven “process news”—essentially collectible commodity information like police blotters—that can be more cheaply assembled by low-cost assembly-line editors. Outsourcing in the Philippines is even part of the formula.

Speaking as someone who was the founding editor of a large, disruptive hyperlocal startup, I wasn’t exactly surprised by the allergic reaction Journatic induced. Anything bigger than a mom-and-pop that approaches the hyperlocal media space is subject to a frisking by the well-meaning but tightly wound security forces of two venerable gated communities: My Backyard and the Fourth Estate. Local citizens and legacy publications feel that the efficiencies of centralized media companies are nice, but they can’t do justice to the uniqueness of their community. Neither party trusts corporate anything to make the right, principled decisions when push comes to profit.

How grounded are these anxieties when it comes to Journatic? Let’s take a look at what we know of the now 40-person firm (plus freelancers) and its intentions regarding the Tribune and its TribLocal’d Chicago ‘burbs.

Journatic is privately held, but founders are trying to raise venture capital, including an undisclosed investment that was part of the Tribune deal. The company’s founder and CEO, Brian Timpone, has pretty solid journalism, entrepreneurial, and Chicagoland bona fides. In a recent interview, Timpone said that his company’s mission is to “help newsrooms better manage their editorial resources … [because] really talented news reporters should spend their time leveraging their skills, not gathering youth sports scores and honor rolls and police blotters.”

On the face of it, that doesn’t exactly reconcile with the fact that Tribune cut around 20 full-time staffers—many of them reporters—as they were signing the papers with Journatic. But the central logic does hold: certain kinds of local news are crying out to be more efficiently processed and packaged, like so many sardines, freeing up skilled whalers to hunt leviathans.

At this point, unfortunately, it’s far too early to judge Journatic on these claims. Its prior work included running a site called BlockShopper.com, which takes available public real-estate data and produces news stories out of it. (Think headlines like, “Local lawyer John Smith Purchases 2BRM Condo for $1.3M.”) That practice pissed off all kinds of privacy-minded folks, but also led to distribution deals with a number of major newspaper chains, including Hearst.

If you look at some of the TribLocal sites that Journatic has begun with in this new partnership (it’s phasing in to take over all 90ish over time), you won’t be blown away. Take the Homewood/Flossmoor site. I’m not from these communities, so I can’t fully judge the relevancy of the content to residents. But I can tell you that a headline on the homepage should not suffer a glaring, html-induced typo like “Five Questions with !…” for over 12 hours (which happened on the day I wrote this piece). Nor should any story, at any level—ever—feature a lede like, “They say practice makes perfect…” even if it’s about a high school tennis star’s perfect season.

Brian Farnham is the former editor in chief of Patch