06/15/1999 Meeting Minutes - Laserfiche WebLink

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Council Minutes of June 15, 1999 projects from Kiwanis and other grant bodies. The for-profit centers are paying $8,000 ,,~,. ;,~ per month for commercial space. None of us will be able to compete with a $2 million facility on which our City Council gave their stamp of approval. If Horizon is filled to capacity, why do we have openings in our centers? Please rethink this and consider what you would be doing to the rest of us. We all desire to stay in business, providing quality care to the families and children of this community. Thank you for your time and consideration, Sincerely, Denise Norris, Administrator" AUDIENCE PARTICIPATION Dave Smith, 27922 North Park Drive, Executive Director of the Horizon Activity Center. Mr. Smith said he would like to look at the letter just read and have some time to review it. Horizon has never claimed that they are the only ones who provide service for low income or moderate income families. Some of the statements in the letter are not true. They do not get the maximum reimbursement from the county for their children because they do charge a lower base rate, and you can only receive the funds up to the limit of your base rate. Currently, Horizon has an average attendance of 327. They are not expanding in the city, but are replacing a center that right now is in existence. So, as far as basically increasing Horizon's capacity in the city, that is not going to happen. They are the only organization in the area that has a Head Start program and also operates an early intervention center. So in that regard, Mr. Smith would like to respond to those issues to show how Horizon is different. Also, they are looking at only a total project development of about $1.6 million. Although the ordinance would give a borrowing limit of up to $2 million, they are looking at basically borrowing $1.3 million. They do plan to pay that loan back with proceeds from their capital campaign, which they will be conducting and collecting pledges over the next 10 years. Denise Norris, 3882 Columbia Road. After hearing about Horizon's request, she did some homework in checking about the Industrial Revenue Bond. Her facility has a non- profit status and does accommodate lower income families and also has a lower base rate. She knows that Horizon does have a quality center, and it is unfortunate that they are losing their lease at Chestnut School. However, they are coming over to the other side of town where there are a number of centers already. They are requesting the stamp of approval from the city and asking the city to be a conduit for a lower interest rate loan. In all fairness to the rest of the centers, it would put them out of business. She questions that they will not increase their enrollment from the current 327 children. She asked City Council to visit the other centers in the area to see what impact this would have on their businesses. They are all trying to give quality child care to the community. Her facility (Abundant Living Child Care) accommodates 100 children, with the ability to accommodate 192 if their program is expanded. Whenever the need arises, they will have the slots for the children in the community. Horizon has said that they have a waiting list. If she does not have a open spot, she refers to the other centers in the community. She has sent some of her clients to Horizon because she does not have a hot lunch program at this time. She does not want City Council to give preferential treatment. She understands the city will just act as a conduit for a lower interest rate loan; however, Horizon could apply for a commercial loan as the other centers would 7