EDA/HRA to begin fundraising, grant writing and planning

By Robert Williams

Editor

Members of the Vergas Economic Development Authority (EDA) / Housing Redevelopment Authority (HRA) participated in daycare tours in Perham and Ottertail as part of the ongoing focus of bringing a daycare center to Vergas.

Perham had an existing building that was restructured into a duplex specifically to house a daycare business that is run by Mahube-Otwa.

Vice President Paul Sonnenberg and Assistant Treasurer Vanessa Perry both discussed the size of the property and it being too small for what is being considered in Vergas. 

A new build in Ottertail was also visited. The Ottertail Family Center consists of two duplexes—a $1.2 million, non-profit-run project, according to CEDA Representative Katie Gehring. 

“They raised a lot of funding to pay for it – through the local community,” EDA/HRA Bruce Albright said. “They wanted it to be a good model. They realized a lot of times daycare providers aren’t making much and they want to make good wages. They found four people that would start four individual daycares there and run them on their own.”

A Department of Employment and Economic Development (DEED) grant of $240,000 and $10,000 from Otter Tail County contributed to the initial funding. The daycare and future community center are part of The Ottertail Community Project (www.ottertailcommunityproject.com), the non-profit organization raising the remainder of the funds under the guidance of Kenny Nelson, Tommy Merickel, Arvig, Hammers Construction, among others.

“They’re impressive,” said Sonnenberg.

The EDA/HRA board discussed the two examples as being on the extremes from Perham’s smaller, home-based unit to the daycare-specific, and larger, Ottertail units.

“We need something in-between,” Lammers said.

Hammers Construction was the low-bidder on the Ottertail project, and according to Albright, took the lead on much of the build.

“Hammers did a lot of the driving of the bus,” said Albright. “Preparation, plans and specs, they ended up being the low-bidder, so they actually built them.”

Discussions were had on an official name for the Vergas daycare project and the establishment of an account for collecting donations through West Central Initiative (WCI).

Another Minnesota project discussed was the Child Care House in Mapleton (businessofchildcare.com/child-care-house)—a community-driven solution to rural child care challenges, led by Mayor Jeff Annis, the Mapleton Economic Development Authority (EDA), and local leaders. The Child Care House will introduce a new licensed family child care provider, offering care for 8-12 children.

Perry pressed for a discussion and decision on deciding whether the EDA/HRA wants to proceed with a stick-build or a modular layout for the Vergas daycare building.

“And then get bids for both before we make our decision because I think it is really hard to say one-way or the other without having any price ideas to go with,” Perry said. 

She also emphasized that even though discussions about Hammers Construction and Dynamic Homes in Detroit Lakes have been used in the early stages of planning, no bids have been received and it will be open to all companies when requests for proposals are sought.

“I know there has been some talk that there have been things decided with certain people already and there has been absolutely nothing done,” Perry said. 

General estimates have been received for initial planning, something EDA/HRA member Kevin Zitzow stressed needs to be the next step, finalizing the plan to make fundraising and grant writing efforts more plausible. 

“I think we need to figure out our plans and then go on,” Zitzow said. “Before we apply for any grants, or any donations, this is what we’re going to do.” 

A project timeline also needs to be finalized with EDA/HRA members well aware of the need that exists currently. 

“The problem is we need a daycare,” said Sonnenberg. “You can’t push it two years down the road.”

The EDA/HRA passed a resolution to pursue a concept plan based on the buildings in Ottertail. Vergas would construct one building, not two. A second resolution was passed to name the project the Vergas Area Housing Project.

Gehring discussed the 9-10 month process regarding First Children’s Finance (FCF).

Founded in 1991, First Children’s Finance (www.firstchildrensfinance.org) addresses the business and finance needs of child care in three different ways: building the financial sustainability of child care entrepreneurs, partnering with communities to preserve and grow their child care supply, and influencing state and federal systems to provide support and investments needed to sustain child care businesses.

A first meeting with FCF is scheduled for early to mid-March, a 2-3 hour onboarding session, before one-hour meetings monthly after that. 

In a separate meeting, the Vergas City Council approved an EDA/HRA recommendation to waive the hook-up fees for sewer and water and entered into a resolution supporting the daycare project, according to Albright.

Other city assistance is needed. To have a daycare in a residential area, a conditional use permit is currently required per city ordinance. Lammers stated she will be discussing changes to the ordinance with the planning commission to remove that requirement after discussing similar regulations and changes with other towns like Ottertail and Perham, among others.

“Most of the cities removed that because basically, you just want state-licensed daycare,” Lammers said. “They are changing it from having to have one in a residential area to you only need to have one if you’re an unlicensed daycare.”

Due to scheduling conflicts, next month’s EDA/HRA meeting has been rescheduled to Wednesday, March 18, at 5:30 p.m.