The Municipality of Eastern Charlotte has approved funding for a new childcare facility in the community.
It has a joint funding agreement with the federal and provincial governments for a 40-40-20 split. The project is estimated to be $2.69 million.
The facility has long been a priority for the council. It was planned as a 6,200-square-foot single-storey wood-framed building located on J.O. Spinney Road, adjacent to Magaguadavic Place.
An original tender was rejected by the previous council due to a cap on funding by the Regional Development Corporation (RDC) at $500,000.
“Following the receipt of the tender results, and prior to awarding the contract to Avant Garde, the [Regional Development Corporation] with the province advised their contribution would be capped at $500,000,” Jason Gaudet, Eastern Charlotte’s Chief Administrative Officer, said in March.
The total cost of the project was $2,698,730, which meant the provincial portion at the time had been reduced to 18.5 per cent. Council was told its portion would be about $1.36 million, or about 50 per cent.
Gaudet said additional discussions had taken place with the province through its economic development project manager, Lori Kelly, and RDC.
“The province, after that, changed the message,” Gaudet said at the June special meeting of council. “[They] went back to the drawing board and came up with some changes to their funding model.”
Back in March, RDC told The Courier that the 40-40-20 funding model remained in place, but it was capped at $500,000.
“Having said that, RDC would entertain maintaining a 40 per cent contribution above the $500,000 toward the total eligible cost of the project, provided there is a sustainable business plan for the childcare and the community identifies how they will raise the balance of the funds,” the department said in a statement to The Courier in March.
The Courier reached back out to the department on June 30 for confirmation of the change in funding allocation and an interview. It did not respond to three subsequent followups. An interview was not provided.
On July 6, RDC acknowledged the request. On July 7, a spokesperson said in an email statement that it was working with the municipality, other funding partners, and the YMCA to propose a funding model.
“We are pleased that Eastern Charlotte is open to these discussions and moving this important project for the region ahead. We will share further details once they are available,” the statement said.
Gaudet said the change increased the provincial amount from $500,000 to roughly $920,000. The federal portion was $918,000, totalling $1.83 million and representing 68 per cent of the total cost.
“For the project to proceed, there would need to be a transfer of the capital reserves and a requirement for short-term and long-term borrowing, which would involve submitting an application to the capital borrowing board,” he said.
He explained to the council that the municipality must pay up front for the cost and be reimbursed by RDC. The municipality is expected to contribute $400,000 to the project, alongside $250,000 from the YMCA.
Adrienne Boudreau, the chief operating officer for the YMCA, said the facility will hold 82 child care spaces, of which 52 will be for children aged one to five years old.
“That will be under the Canada-wide agreement, so that is where you would see the reduction in fees for spaces,” she told the council.
She said infant fees are $21 per day, children aged two to four years old would be about $18 per day, compared to the YMCA fee of $47 for infants and $41 for the older ages.
The YMCA started providing services in 2016, Boudreau explained.
In addition, there are 30 after-school spaces, she said. The cost for that program is $116 per week.
Boudreau also estimates the facility will create about 15 to 20 jobs. She said the deadline for those spaces has been extended twice and the facility was supposed to be open by December 2026.
Council approved the transfer of funds from the capital reserves and passed a motion for short-term and long-term borrowing.
It tabled a motion to issue a conditional tender pending design renderings of the facility and to allow new councillors to catch up on the file after the general election.
