Child-care center builds park revenue
Child-care center builds park revenue When the Folsom (Calif.) Parks and Recreation Department began planning the Ernie Sheldon Youth Sports Complex in 1989, it quickly became obvious that the city did not have the funds for the project. Designs included a soccer field, tennis courts, a Little League baseball field, a softball field, a basketball court and roller hockey courts. Including the necessary infrastructure, spectator stands, concessions, parking and green spaces, the total construction cost approached $2 million.
Park development in the city typically is financed by development impact fees, but the available funds were insufficient for the three-phase complex in the Natoma Station neighborhood. Consequently, Folsom officials began investigating adding a revenue-generating commercial-type venture to the site.
Based on the makeup of the neighborhood, which includes 1,400 single-family homes, 300 multifamily units and an elementary school, officials decided to build a child-care center at the park. (At the time, there were no other child-care facilities in the neighborhood.)
Seventy percent of the funding to build the park and its facilities was drawn from park impact fees; the remaining 30 percent was financed by bonds, which will be paid back from revenue generated by a 35-year ground lease agreement with the Natoma Station Learning Center.
The Learning Center was built as a joint-use property for the community and child-care center operators. The 10,000-square-foot facility includes six classrooms, a library, a computer lab, a kitchen, restrooms, a director’s office and several small rooms for storage. Rules of the facility are quite specific. For example: * the child care center can schedule time to use specific park facilities until 5:00 p.m. each day. (During that time, the public has access to all other facilities.); * parking for the park and the center is designated by time and location; * two 1,000-square-foot classrooms are used by the public for recreation classes and programs only after child-care center hours; and * the Parks and Recreation Department is responsible for maintaining the landscape at the center, while the Learning Center maintains the interior of the building.
The Natoma Station Learning Center, which opened in June, is expected to generate $51,000 for the city in its first year. Over the life of the 35-year lease the center has with the department, it is expected to generate $2.5 million for the city. Additionally, the city offers 24 public classes at the center, generating another $34,500 per year in registration fees.
At the end of the 35-year lease, the center will be owned by the city. It will then be used exclusively for public programs.