Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Childcare Funding topic
No spam. Unsubscribe anytime.
Grafton council approves $100,000 challenge grant to help close Walsh County childcare funding gap
Summary
The Grafton City Council voted Oct. 14 to approve a $100,000 city challenge grant to help close a $408,000 shortfall for a Walsh County childcare center, and separately approved a property-tax exemption for commercial childcare centers. The grant reduces the city's $300,000 line-of-credit exposure if outside fundraising fills the remainder.
The Grafton City Council on Oct. 14 approved a $100,000 challenge grant to help close a $408,000 funding shortfall for a Walsh County childcare center, council minutes show. The grant would reduce the city's $300,000 line of credit tied to the project so the outstanding payback would be $200,000 if private fundraising and grants supply the remaining funds.
Stacie Sevigny, director of the Walsh County JDA, told the council there is a $408,000 shortfall for the childcare center and that the JDA expects to fill that gap with grants and private-sector contributions. "There is $30,000 pending in grants," Sevigny said, and she said the JDA will continue discussions with employers and other potential funders. She explained that the CHDO will not repay the city's line of credit; repayment will be the responsibility of the Walsh County JDA through donations, grants and other private funding, while the CHDO will maintain the building.
Councilmember Kylen Kostrzewski framed the vote in economic-development terms: "We are trying to grow Grafton and in order to do that we need housing and childcare," he said before moving the challenge-grant motion. The motion to approve the $100,000 match/challenge grant — which would be written off from the city's $300,000 line-of-credit if the remainder of funding is secured — was moved by Kostrzewski and seconded by Loree Osowski. On roll call the following voted in favor: Brad Burianek, Kylen Kostrzewski, Donavon McMillian, Loree Osowski, Phil Ray, Darrin Wollitz and Greg Young; Brian Sieben voted no. Mayor Chris West declared the motion carried.
The council also separately approved a property-tax exemption for commercial childcare centers earlier in the meeting; that motion passed on a roll-call vote with one recorded opposition. Sevigny said some bills will need payment before fundraising is complete and that a long-term lease with reasonable rent could allow a different provider to use the facility in the future.
Next steps recorded in the minutes: the Walsh County JDA will continue fundraising, apply for grants, and pursue private-sector contributions; the city will treat the $100,000 as a challenge grant contingent on those fundraising efforts. The minutes do not specify a repayment schedule or exact timing for transfer of funds if fundraising targets are met.
