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Grafton council backs $300,000 line of credit to close Walsh County Childcare Center funding gap
Summary
The Grafton City Council unanimously approved support for a $300,000 no‑interest line of credit to cover a funding shortfall for the Walsh County Childcare Center after bids exceeded secured financing. Councilors and county JDA officials said the loan will allow bids to be accepted and construction to proceed.
The Grafton City Council voted June 10 to support a $300,000 line of credit, with no interest charged, to help close a roughly $265,000 shortfall on the Walsh County Childcare Center project.
Administrator Nick Ziegelmann told the council that approximately $978,000 — about 79% of the estimated construction cost — had been secured, but the low bids came in at $1.2 million, leaving an approximate $265,000 gap. Ziegelmann recommended a $300,000 line of credit to allow the project to accept bids and move forward. The council approved the motion (moved by Don Hutson, seconded by Brian Sieben) with all members present voting in favor.
The center is planned to serve 55–65 children; the operator currently employs 12 people with an expected increase to 16–17 employees and maintains a waiting list for staff. Ziegelmann said the facility will be owned by a CHODO and leased to the operator. He said grants and other fundraising will be pursued to repay the line of credit.
Stacie Sevigny of the Walsh County Job Development Authority told the council that the project scope has increased because a new HVAC system was determined to be necessary, and that current bids do not include appliances, a new side entrance or playground equipment. She said additional grants and fundraising remain part of the repayment plan.
The council’s vote authorizes the line-of-credit support so bids can be accepted and construction can proceed; councilors did not attach interest to the loan in the motion. The next procedural steps are to accept the contractors’ bids and proceed with contracting and construction work.
