San Carlos approves $235,654 in child‑care grants amid debate over $100,000 cap

San Carlos — The City Council voted to award $235,654 in grants aimed at creating new child‑care spaces in San Carlos, approving three awards after a lengthy policy discussion about whether a single owner should receive more than the program’s usual $100,000 cap.

Andrew Douglas, senior management analyst in the city’s Community Development Department, told the council the 2025 child‑care grant program distributes fees collected from new nonresidential development to expand physical child‑care capacity. For this funding cycle the city received five applications; one withdrew and one was judged ineligible, leaving three recommended awards that together would create an estimated 80–87 new child‑care spaces, Douglas said.

Under the resolution the council approved Schuh Academy Preschool for $35,654 to fund interior and exterior renovations that staff estimate will add eight spaces; a $100,000 award to a planned new facility described as Curious Beans by Schuh Academy (a reimbursement for a down payment on a property acquisition); and $100,000 to Bright Horizons for outdoor play‑area renovations tied to obtaining a license to serve younger children.

“The program offers San Carlos child‑care providers grants of up to $100,000 to create new child‑care spaces,” Douglas said, explaining awards are reimbursement‑based and staff will collect invoices and conduct site visits and annual reporting to verify capacity increases.

Schuh Academy owner Katie Shen told the council the Curious Beans purchase remains in escrow, permit comments have been received from city departments and the team expects to begin construction in June with roughly six months of work before state licensing can proceed.

“I think we are expecting to start the construction in around June time, and the construction itself might take about six months,” Shen said.

Council debate concentrated on whether the city should treat each physical facility as a separate eligible project (allowing the same owner to receive awards for multiple locations) and whether exceeding the $100,000 threshold for an owner would set a bad precedent. Several council members urged programmatic changes so the notice of funding availability (NOFA) clearly states whether awards are limited per owner or per site.

“I’m just concerned about the precedent we’re potentially setting here by getting beyond the $100,000…without sort of, you know, I think a council decision around that,” the vice mayor said during debate.

Councilmember McDowell moved the resolution; Councilmember Layton seconded. The motion included a condition that the $100,000 for Curious Beans by Schuh Academy be disbursed during construction. The resolution passed with a recorded outcome of 3 yes, 2 no and 1 recusal; the mayor did not participate in that vote.

Staff said it will notify applicants, execute reimbursement agreements, collect documentation showing eligible project completion, and issue reimbursements. The city will also collect annual reports from recipients for five years to track capacity achieved. Councilmembers directed staff and the subcommittee to revisit NOFA language and program rules for future cycles to address caps, triggers for disbursement, and eligibility questions.

Resolution: 2026‑6 awarded $35,654 to Schuh Academy; $100,000 to Curious Beans by Schuh Academy (conditioned on construction disbursement); and $100,000 to Bright Horizons. Vote: motion passed (3–2, 1 recused).