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Mount Rainier council approves $50,000 forgivable loan for neighborhood childcare

October 30, 2024 | Mount Rainier, Prince George's County, Maryland


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Mount Rainier council approves $50,000 forgivable loan for neighborhood childcare
Mayor Benitez and the Mount Rainier City Council voted unanimously Oct. 29 to commit up to $50,000 from the city's "million-dollar incentive fund" to Naturally Integrated Learning Experiences (NILE), a woman- and minority-owned childcare venture planning to locate in the Melinda Miles Annex at 3503 Perry Street.

Dawn, representing FSC First (the local financing intermediary), told the council that NILE principal Erica Serrano will contribute $9,500 in owner equity toward total estimated project costs of $59,500. The loan is structured as forgivable; if the project does not meet closing or program conditions the loan would convert to a seven-year, 6% repayable loan, Dawn said.

The presenters outlined projected near-term operations and demand: initial enrollment of about 20 children with an eventual expansion to 32, weekly rates projected at $285 per child and first-year revenues estimated at approximately $178,000. Dawn said FSC First will monitor the project's receipt of necessary permits and licenses and will send a formal commitment letter to local staff to schedule closing and agreement signing.

Erica Serrano, the applicant, said she is "very excited" to offer services in a part of the city with high childcare demand. Councilmembers raised operational questions about traffic flow during drop-off and pick-up; Serrano said the program will run long hours (as early as 7:00 a.m. through 6:00 p.m.) to stagger arrivals and reduce peak congestion, and that many families will walk to the centrally located facility.

Councilmember Luke Jesik said as a parent he understands local demand for accessible childcare, and Councilmember Valerie Woodall asked staff to ensure traffic access and egress are addressed during permitting. Ron Hopkins, a local director who said he has worked with the applicant, expressed strong support and said the city needs additional daycare capacity.

On the record the mayor moved to approve the funding and the council seconded; the item was recorded as "approved unanimously." The council directed staff to finalize a commitment letter and proceed with closing once required state and county approvals and local permits are in place.

The council did not record a roll-call tally in the meeting transcript. The next procedural step is a signed commitment letter and the closing of financing once regulatory approvals are confirmed.

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Scribe from Workplace AI
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