Devils Lake officials, parents scramble after Sunnyside daycare abruptly closes

Sunnyside Child Daycare informed city officials it would close effective June 30, city staff told the Devils Lake City Commission, prompting immediate discussion about legal options, short-term custody of the building and how to restore child-care capacity in the community.

Brady, a city staff member who presented a memo on the matter, said the owner emailed the city on June 24 advising the closure would be effective June 30 and asking the city to be patient while she returns to discuss options. "She did give a number of reasons…she did also ask for our patience until she can get back to town to discuss options going forward," Brady said. He told the commission the memo proposes routes including attempting to enforce the existing lease or, alternatively, issuing a request for proposals to invite a new or existing child-care operator to occupy the building under a fresh lease.

The city attorney advised that the owner's written communication likely constitutes a termination of the lease by the tenant and recommended discussing enforcement options in executive session. The attorney also recommended immediate, nonlitigation steps the city can take to limit loss, including transferring utilities into the city's name if lease payments stop, inspecting the interior for damage and abandoned property, securing insurance on the building, and taking reasonable steps to re-lease the space. "When you have a termination of a lease agreement, you need to mitigate your damages," the city attorney said.

Commissioners discussed logistical steps: scheduling a walkthrough to take possession of keys, coordinating utility transfers and whether to reduce services while maintaining minimal climate control. Brady said one option for the Jobs Development Authority would be to issue an RFP seeking a replacement operator; a commissioner reported there has already been interest from other providers in Devils Lake.

Parents and local providers urged urgency. "We're heartbroken. Totally heartbroken," said Heather Jansen, whose children attend Sunnyside. She called the five-day notice "a huge loss" and said families are left scrambling; Jansen estimated "50 to 60" children were displaced and noted staff should be offered priority for rehire. "Since the city owns the building, what if the city operated the daycare under city's [oversight]?" she suggested.

Stacy Hagen, another parent, said many staff members already have taken other jobs after the short notice and warned of longer-term consequences for families and for Devils Lake's ability to attract young families. "The staff is devastated, families are devastated, and everybody is scrambling," she said.

Melissa Tester, director at Lake Region Corporation, said her agency had absorbed eight children in the three days since the closure and was near capacity. Tester urged the commission to examine recent changes to child-care reimbursement that took effect in December and cautioned that reduced reimbursement can make facilities financially unsustainable. She asked whether the city can move quickly to prevent the closure from permanently shrinking local child-care capacity.

Officials outlined next steps: convene the Jobs Development Authority and relevant boards to solicit recommendations (board/JDA meetings were mentioned for early July), consider calling a special meeting to gather input before the regular commission meeting, and hold an executive session if the commission chooses to pursue legal remedies related to the lease. No formal motion or vote was taken during the discussion.

The commission said it would expedite scheduling follow-up meetings and return to the issue after receiving legal advice and the JDA's recommendations.