Fiscal Note
The proposed resolution authorizes the award of loans totaling $250,000 to three child care providers through the Community Development Division's (CDD) Child Care Capital Access program (Munis program 14969/2024 project 14970). The 2024 Adopted Capital Budget included $250,000 for the program. Approval of this resolution would expend the authorized amount for 2024. No additional City appropriation required.
Title
Approving the award of loans totaling up to $250,000 from the Community Development Division’s Child Care Facilities Loan Program to three child care providers (Little Genius Bilingual Learning Center, The Playing Field, and Safari Bilingual Learning Center) for use in establishing or expanding child care space and authorizing the Mayor and City Clerk to enter into agreements with those agencies to complete the specified development projects. (District 9, District 12, District 17)
Body
Background
The City of Madison, in line with trends across the country, is experiencing a shortage of available child care. Approximately 2,500 children in Madison are waiting for a spot in regulated child care. Access to child care is particularly scarce in areas of the city considered to be child care deserts. The City has heard from child care providers in these locations that help with funding projects to expand their spaces could help them increase the number of children they are able to serve.
The City of Madison’s 2024 Adopted Capital Budget includes up to $250,000 in funding to support a new Child Care Facilities Loan Program. The Program makes funds available to non-profit and for-profit agencies, as well as individuals, looking to establish or expand a regulated group child care program, particularly within parts of the City where child care is scarce. Funds are available through an application cycle. The first application deadline was October 15, 2024 and the Community Development Division received requests from three agencies with combined total project costs of just over $5,000,000. This resolution recommends allocating the available funds among the three applicants.
Action
WHEREAS, the City of Madison’s 2024 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 child care program; and,
WHEREAS, the Program is available to non-profit or for-profit entities and individuals looking to establish or expand a regulated group child care program, particularly in areas of the City where child care is scare; and,
WHEREAS, funds under the Child Care Facilities Loan Program are offered to awardees in the form of a zero percent forgivable loan, repayable upon a change of use of an assisted property or the termination of a lease contract unless that change of use or termination occurs less than 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 child care and increase the available supply of infant and toddler care for residents; and,
WHEREAS, the Community Development Division received requests for assistance from 3 child care providers for project costs totaling just over $5,000,000, and staff recommends allocating available funds as follows:
• Little Genius Bilingual Learning Center, up to $70,000 to establish a child care facility at a property located on East Washington Avenue
• The Playing Field, up to $100,000 to establish a child care facility at a property located on East Springs Drive
• Safari Bilingual Learning Center, up to $80,000 to establish a child care facility at a property located on Westward Way
WHEREAS, all of these proposals are consistent with the goals and requirements set forth in the Child Care Facilities Loan Program; and,
WHEREAS, at its September 12, 2024 meeting, the Early Child Care and Education Committee approved the staff funding recommendations; and,
WHEREAS, agencies 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 hereby approves the funding allocations as recommended by the Early Care and Education Committee and described herein; and,
BE IT FURTHER RESOLVED, that, the Council authorizes the Mayor and City Clerk 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.