Council backs Sky Harbor childcare award to KinderCare; court order delays contract execution

The Phoenix City Council voted 9‑0 on June 4 to approve the Sky Harbor airport childcare project award and related agreements, a project that uses airport capital funds and a $3 million ARPA tenant‑improvement allocation to create on‑site childcare for airport workers.

Councilwoman Guardado, who led council remarks on the item, said the project supports the airport’s workforce and cited airport economic impacts and prior pandemic work to sustain essential workers. The council vote approved staff’s recommendation to award the revenue contract and move forward with the build‑out.

The award was contested by several local small providers, who raised procurement concerns in public comment and subsequently filed legal challenges. Attorney Josh Grable, representing a disappointed proposers group, urged the council to delay action until a court hearing scheduled for June 20, calling the procurement process "seriously questionable." Several small providers and a parent speaker said they believed the solicitation process treated local providers unfairly.

City counsel told the council that a Maricopa County Superior Court judge held an emergency hearing and denied a temporary restraining order that would have blocked the council vote but entered a temporary order preventing the city from executing the contract with KinderCare until a June 20 hearing. The court also required the protesting party to post a bond by the close of business on Friday to lift the restriction; if the bond is not posted the order will be lifted, staff said.

A KinderCare representative, Carissa Masick, described KinderCare’s experience providing employer‑partnered childcare and said the company is prepared to operate the center. Several public commenters and small local providers urged more scrutiny of the procurement, asserted procedural irregularities and described planned or pending litigation. A parent speaker offered a personal account of a past serious incident involving a KinderCare operation.

Staff said the project includes approximately $3.7 million in aviation capital funds for a shell and $3 million in ARPA funds for tenant improvements; the chosen operator will fund operations and provide program services. Staff also said the contract term is a primary 10‑year lease with two five‑year extension options. Council members asked staff about hours of operation and told staff to seek extended hours where possible; staff said proposals had generally proposed a 6 a.m.–6 p.m. operating window and that survey work suggested the 6 a.m.–8 p.m. window as the primary need.

Council approval authorizes the award but, per the court order, staff cannot execute the contract until the temporary court condition is resolved. Staff said they will return with implementation details and continue to coordinate with the city attorney’s office while the litigation proceeds.