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Making way for child-care centers

Statewide partnership offers funds, expertise to renovate facilities

By Marion Davis, Staff Writer, Providence Business News


A Place to Grow, a nonprofit child-care center in Wakefield, found a home in an old warehouse with renovation help from Local Initiatives Support Corp, Rhode Island in the form of a 15-year, $422,500 loan. The center serves about 110 families. Photo by Krzystyna Harber

An old nursing home. An empty warehouse. Inner-city apartments.

In the last three years, LISC Rhode Island has helped them all become viable child-care spaces: Child Care Connection Central Falls, serving 260 youngstersfrom mostly low-income families; A Place to Grow, serving about 110 families in Wakefield; four home-based child-care centers in a renovated apartment complex on Woonsocket’s Constitution Hill.

The projects are part of a statewide effort to create, expand and improve child-care spaces that has invested nearly $3.3 million since 2001, including $2.6 million in low-interest loans as well as grants to community groups and family child-care providers.

The idea behind LISC’s Rhode Island Child Care Facilities Fund, which is supported by public and private sources, is that quality child care is “a very important part of the economic health of our communities,” as LISC executive director Barbara Fields put it.

“If we’re going to move people from welfare to work, or even help women to work more hours, we need to have a place for our children to go where they’re going to be safe, and it’s a good place for them to be,” Fields said.

LISC Rhode Island is part of a national group, the Local Initiatives Support Corp., which provides money and expertise to community groups building housing and revitalizing neighborhoods. LISC has invested in several child-care projects across the country, but in Rhode Island and Connecticut, it’s gone further, working statewide to make a bigger impact.

The Rhode Island program, run by Cindy Larson, a veteran of early childhood programs, is financed by the state and the Rhode Island Foundation (each gave $1.25 million), along with Alan Shawn Feinstein, the Rhode Island Housing & Mortgage Finance Corp., the U.S. Departments of Education and Health and Human Services, Hasbro and LISC itself.

LISC was asked to work on this issue, Fields said, because of its expertise in real estate finance and community development. While the state has focused on teacher training and child-care accessibility, LISC is focusing on the buildings where children are cared for.

“We’re talking about the physical real estate needs, and it has shown to be a real powerful tool” to improve child care, Fields said.

It’s “fairly rare” for child-care centers to have custom-built facilities, Larson said, even at the high end of the market, so most providers are making due, in some way or another, in buildings designed for another purpose. What LISC can do is help them make those spaces safer, healthier, more educationally useful and child-friendly, and ensure that new child-care spaces are that way from the start.

So far, LISC has provided grants and loans to more than 30 organizations working on child-care projects, including $150,000 given out as “mini-grants” of $300 to $1,000 for home child-care providers to fence in their back yards, add child-friendly rubber floors, and otherwise improve the environment for youngsters.

But the bulk of LISC’s investment has gone into six large-scale projects from Woonsocket to Newport, adding a combined 77,000 square feet of quality child-care space and more than 500 new child-care slots, and improving conditions for another 300 children.

A Place to Grow, in Wakefield, is a nonprofit center started as a partnership with South County Hospital. When the hospital needed to expand, the child-care center got evicted. Director Jennifer DeFrance looked for months before even finding any usable space – an old warehouse. Then she faced the challenge of paying for renovations.

“We tried applying, seeing if we could apply for conventional loans, and we couldn’t even come close to what we needed,” DeFrance said. The center already had debt, she said, and its annual budget was only about $700,000, so no bank would touch the project. LISC provided a 15-year loan, $422,500 with 5 percent interest. The LISC money allowed DeFrance to turn the sterile space into a “real child-friendly” place, with lots of light, observation windows, direct playground access from the classrooms, and easy-to-reach bathrooms. The warehouse became a modern, colorful, cheerful space.

“We were facing closing our doors,” DeFrance said. “Without LISC, we would not be here. I can’t say that enough.”

Child Care Connection, which runs 17 facilities in Rhode Island and Massachusetts, is a powerhouse in the industry, not normally the type to have trouble with financing. But when the Lincoln-based company set out to transform the old Rose Cottage Nursing Home in Central Falls into a child-care center, to serve primarily state-subsidized families, banks wouldn’t touch that project, either, said president and CEO Kevin A. Fusco.

LISC stepped in there as well, loaning $500,000 to gut and rebuild much of the interior – which looked “horrific” – and $10,000 for a “top-notch” Boston architect to redesign the space. “We have centers that serve primarily private payers that are really nice,” Fusco said. “But I would have to say Central Falls is the nicest of the 17 centers we have, by far.”

Since the Central Falls center opened, in 2003, Child Care Connection has tapped LISC’s expertise to improve outdoor play spaces and provide more natural environments. The company hasn’t found another good inner-city site to develop, he said, but “my definite hope is to do that again.”

Meanwhile, LISC has loaned $625,000 to the Woonsocket Neighborhood Development Corp., a longtime partner that also developed the four home-based child-care spaces on Constitution Hill, to turn the former Hope Street School into a 110-slot child-care center, due to open late this year. And there are more projects in the works, Fields said; the program is already funded for another year and a half.

Given how interest rates are rising, Fields said, the need for LISC’s money is unlikely to abate. But the good news is, as happened with low-income housing over the last several years, business leaders are realizing the importance of child care and offering their financial support, she said.


 

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