Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Childcare Finance topic
No spam. Unsubscribe anytime.
Napa County approves $150,000 forgivable loan to Le Petit Elephant to preserve affordable child care
Summary
The Board of Supervisors approved a $150,000 forgivable loan from the Tobacco Master Settlement Agreement (MSA) corpus to help Le Petit Elephant complete a move and open additional infant and child-care slots in the City of Napa, with the board adding an amendment to seek ARPA funds first if they become available.
The Napa County Board of Supervisors on April 22 approved an additional $150,000 forgivable loan to Le Petit Elephant Nursery and Preschool (LPE) to support the provider's purchase and renovation of a nearly 20,000-square-foot building in the City of Napa and preserve planned affordable infant and child-care spaces.
County Chief Executive Ryan Alsop told the board LPE previously received $1.2 million in county ARPA funds and that the new request is meant to cover pre-construction expenses, permit fees and unplanned legal costs tied to a lawsuit that delayed the project. “LPE has requested an additional $150,000 in a forgivable loan … to cover pre construction expenses,” Alsop said during the board presentation.
The board approved the loan with a motion amended to direct staff to first use any unspent ARPA dollars to repay the county’s MSA corpus if those ARPA funds become available. Supervisors voted unanimously; the motion was made and amended during the meeting and recorded as approved by the full board.
Why it matters: County officials said expanding infant and affordable child-care slots is a local economic and workforce priority. Alsop said the county’s original ARPA commitment to child care totaled about $3.8 million, with $1.2 million previously awarded to LPE to expand roughly 100 affordable spaces. Supervisors and community speakers framed the request as a one-time, targeted step to protect the county’s prior investment and avoid raising tuition for families.
What the board debated: Board members and speakers discussed funding sources and conditions. County staff confirmed the requested MSA funds would be a one-time infusion from the MSA corpus and that interest earnings had been committed to other MSA grant programs; staff said roughly $9 million of prior interest earnings were in the corpus and being drawn down for multi‑year programs. Supervisor Ramos asked the county to prioritize ARPA funds to replace any MSA corpus drawdown if ARPA money becomes available, and the board adopted that amendment.
Public comment and providers: LPE founder Neli Pentacci described financial setbacks she said were caused by a lawsuit that delayed the project and generated unexpected costs. Several community members — including local employers and nonprofit leaders — testified that LPE provides essential, flexible care that enables agricultural and hospitality workers to remain employed. The City of Napa submitted a letter urging caution about waiving fees but offered to discuss payment plans and other relief.
Conditions and accountability: The county will make the additional funds a forgivable loan and included a condition that the provider maintain a minimum number of child-care spots for an agreed period (staff described a proportional additional 15 months of spot-maintenance coupled to the original 10-year requirement attached to the earlier funding). The board also requested that county staff coordinate with the City of Napa to pursue possible city fee relief to reduce the financial burden on the project.
What happens next: County staff will finalize loan documents and coordinate with the city. Supervisors also asked the CEO’s office to continue work identifying incentives and partnerships to expand affordable infant and child-care capacity in unincorporated areas.
Ending note: Supervisors emphasized the request was a one-time, targeted intervention to secure previously allocated county investment and preserve planned affordable child-care capacity for working families.
