The City Council of Webster City agreed Tuesday to help find a way to make the path to the proposed Webster City Daycare renovation an easier one.
Acknowledging the challenge to the city by the Hamilton County Board of Supervisors, which in late December pledged $28,375 from Local Option Services Sales Tax — LOSST — funds towards the improvement, the council came to a consensus to help, but it is still unclear how.
“Last February the city gave $10,000 to daycare,” Megan McFarland, a council member who sits on the daycare board said Tuesday. “That money has not been used. I propose that money be used toward that $28 mark, so we’re asking $18,000.”
She was referring to the amount of the county’s challenge.
She added, “We would like to have two $52,000 lump sums and pay it off by 2025.”
Peterson Construction, of Webster City, in November 2022 submitted an estimate of just over $135,000 to do the work.
The proposed work would “reshuffle” classrooms and remodel the gym with the intention of expanding the day care’s capacity and, in turn, its revenue.
“This will add 72 new childcare slots by remodeling room structures,” the written proposal says. It also calls for adding three teachers and eight staff members.
It projects its anticipated new revenue at $546,480 when the remodel is complete.
The daycare has received a $56,000 pledge from Town & Country and is hoping for approval of another $20,000 from Enhance Hamilton County.
The city originally sold the real estate at 1317 Beach St., Webster City, in 2004 for $786,000 with the expectation that it would be paid off by the fall of 2014.
However, in 2013 the loan agreement with the city was modified. The modification balance of $391,176.11 was financed at a low interest rate with payments spread out until 2053.
Because the city still carries this parcel in a loan agreement, a procurement issue tied to municipal property and public funds may bind the proposed renovation project to unnecessary tethers, Daniel Ortiz-Hernandez explained during Tuesday’s meeting.
View this article as it originally appeared in the Daily Freeman-Journal.
Last modified: January 4, 2023