Fiscal Note
The proposed resolution authorizes a loan of up to $80,000 to Monona Grove Nursery School through the Community Development Division's (CDD) Child Care Facilities Loan Program (Munis program 14969/2024 project 14970). The 2024 and 2025 Adopted Capital Budgets authorized $250,000 annually for the program in 2024 and 2025. Approval of this resolution would draw on funds authorized for 2024. No additional City appropriation is required.
Title
Approving a loan of up to $80,000 from the Community Development Division’s Child Care Facilities Loan Program to Monona Grove Nursery School for use in developing new child care space, and authorizing the Mayor and City Clerk to enter into agreements with that agency to complete the specified project. (District 15)
Body
Background
The City of Madison’s 2025 Adopted Capital Budget authorizes up to $250,000 for the Child Care Facilities Loan Program to support local childcare providers’ efforts to establish, expand or sustain their programs, particularly within parts of the City where childcare is scarce. The Program makes funds available to non-profit or for-profit agencies, as well as individuals, looking to establish or expand a regulated group childcare program,
Action
WHEREAS, the City of Madison’s 2025 Adopted Capital Budget includes $250,000 to support the Child Care Facilities Loan Program; and,
WHEREAS, the Child Care Facilities Loan Program provides low-cost financing to support non-residential development projects that involve the acquisition of property, or substantial expansion, redevelopment, improvement, or rehabilitation of property an organization currently owns or leases for use for a childcare program; and,
WHEREAS, funds are available to non-profit or for-profit entities and individuals looking to establish or expand a regulated group childcare program, particularly in areas of the City where childcare is scarce; and,
WHEREAS, funds under the Child Care Facilities Loan Program are offered to awardees in the form of loans that are forgivable so long as the assisted property is used for a regulated childcare program for a period of at least 5 years from the date of completion of the project, but are repayable if the property is sold, its use is changed, a lease is terminated or for any other reason the childcare program does not continue for at least 5 years from the date of completion of the project; and,
WHEREAS, the City’s objective through the Child Care Facilities Loan Program is to create or expand resident access to high-quality childcare and increase the available supply of infant and toddler care for Madison residents; and,
WHEREAS, the Community Development Division received a request for assistance from Monona Grove Nursery School, a childcare provider, seeking $80,000 to help finance renovation costs totaling just over $475,000 needed to establish a childcare facility at a leased property located at 4032 Monona Drive; and,
WHEREAS, this proposal is consistent with the goals and requirements set forth in the Child Care Facilities Loan Program; and,
WHEREAS, if awarded funds, the agency will be required to follow all Child Care Facilities Loan Program guidelines as well as comply with any applicable City zoning and land use requirements.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves an award of $80,000 to Monona Grove Nursery School to help finance proposed leasehold improvements to the property at 4032 Monona Drive which are necessary to support its establishment of childcare programming; and,
BE IT FURTHER RESOLVED, that the Council authorizes the Mayor and City Clerk, on behalf of the City, to enter into a contract with Monona Grove Nursery School and to execute, deliver, publish, file, and record such other documents, instruments, notices, and records, and take such other actions as shall be deemed necessary or desirable to accomplish the intent of this Resolution, and to comply with and perform the obligations of the City.