The Sweetwater City Council voted to authorize Seed MDD funding of up to $200,000 for Lone Star Learning Academy, a community-formed nonprofit that plans to open a childcare center in early 2026.

Seed MDD staff told the council the board approved the incentive at a recent meeting and structured the award as a three-year, performance-based agreement. The payments are contingent on enrollment milestones: enrollment reports are due March, June and November in the first year (then June and November in subsequent years) and annual operational reports are due Feb. 1. Seed MDD said the $200,000 maximum would be available only if the center reaches an enrollment target of about 80 children.

The center intends to lease space at Emmanuel Fellowship on Haley Street (roughly 4,000 square feet), hire a director by Jan. 1 and open by March 1, Seed MDD said. Staff noted the operator missed state grant application windows for 2025 and will pursue state grant opportunities in 2026 for funding that could be received in 2027. Seed MDD also said some furniture and curriculum will be reused from Sweetwater ISD and that local fundraising had generated roughly $17,000 so far.

Council members pressed staff on startup viability and staffing costs. Seed MDD estimated director pay near $55,000 and classroom provider pay in the $18,000–$24,000 range; an unidentified council member estimated annual payroll for the operation could be about $400,000, underscoring the cash‑flow risks during a startup period. Seed MDD said the incentive was deliberately structured around enrollment to limit public-sector exposure after a prior Seed-funded Sweetwater ISD childcare operation closed.

An unidentified council member disclosed a family connection to board members and said they would abstain from the vote; that abstention was recorded. The council approved the measure with the motion to authorize funding including a recommendation that Seed MDD revisit the payment structure if the council preferred a different schedule.

The council asked Seed MDD to consider the council’s recommendations and indicated an amended agreement could be handled administratively if the Seed MDD board approved changes.