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Maroon & White says Kids’ Campus costs climbed to about $4.6 million; nonprofit seeks financing options for roughly $1 million in long‑term debt
Summary
Maroon & White, Inc. told the Grundy Center council Aug. 5 that Kids’ Campus construction costs rose from an estimated $3.3 million to about $4.6 million because of pandemic-related supply and workforce delays, and the nonprofit is shopping for low-interest options to cover roughly $1 million in remaining long‑term debt while historic tax credits and special‑revenue bond timing complicate financing.
Melody Hoy, president of Maroon & White, Inc., told the Grundy Center City Council on Aug. 5 that the nonprofit’s Kids’ Campus project at 1001 8th Street experienced substantial cost increases and financing setbacks tied to the pandemic and related supply‑chain and labor shortages.
Hoy said planning‑stage costs were about $3.3 million but quickly rose to roughly $4.6 million as inflation, supplier and workforce delays increased expenses. Those same delays contributed to nearly a 12‑month hold on receiving federal and state historic tax credits, she said, and the organization recently learned it would not qualify for special‑revenue bonds for the first five years until the tax credits are completed. Hoy described those developments as placing “a large strain on the final long‑term debt financing.”
Maroon & White is seeking the lowest available interest rates and financing options to cover about $1 million in long‑term debt. Hoy reported programmatic progress despite the financing pressure: the Community Preschool added a third classroom and Grundy Center Community Daycare enrolled 19 additional children after moving into the facility, though hiring constraints have slowed further enrollment growth. Hoy thanked city officials for support on the project.
No formal council action was recorded on the project at the meeting; the update was provided for elected officials and the public. Next steps described by Hoy include continued fundraising, loan/interest‑rate shopping, and completing the historic‑tax‑credit process before accessing certain bond options.
