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Brainerd EDA asks staff to draft childcare incentive policy for commercial and home providers
Summary
The EDA directed staff to draft a childcare incentive policy after discussing waiving certain permit fees and the eligibility question for both commercial centers and home daycares; board members suggested raising the valuation threshold above the $150,000 model used for River to Rails.
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The Brainerd Economic Development Authority asked staff June 5 to draft a childcare incentive policy that would apply to both commercial childcare centers and home‑based providers.
Staff (James) reviewed a proposal discussed at an April workshop and described staff’s initial recommendation—modeled on an existing River‑to‑Rails incentive—with a $150,000 valuation threshold and potential waivers of building permit and land‑use fees. Board members debated whether incentives should apply to both commercial centers and home daycare providers and whether the $150,000 threshold remains appropriate. One board member noted that an increase to $250,000–$300,000 (or higher) might be more realistic given current construction costs; another suggested considering a $450,000 target for some projects.
James said staff will draft a formal policy for the board to review at the next meeting; if the EDA approves it, the policy would then go to the city council for adoption.
Board members emphasized that encouraging home daycares could quickly expand care capacity: several members said supporting both types of providers would add spots faster than waiting for large commercial expansions.

