Central Iowa Times

The Webster City Council discussed a real-estate agreement between the city and Webster City Daycare as the center looks to renovate and expand.

City Manager Daniel Ortiz-Hernandez gave the background on the matter during a council meeting earlier this month.

“Because the city still holds the deed, under state law it's considered a public improvement project and is subject to the public procurement codes that the state sets out and the thresholds,” he said in a video of the Jan. 3 meeting. “And so it's just a process of formality that the city would be responsible for whether we relinquish that to a city daycare or whether we do that ourselves. But it's going to be a required process.”  

The city has been involved with this daycare since 2004 when there was some assistance in utilizing a recently vacated property. In 2013, the contract/deed, which listed the city as the owner of the Webster City Daycare property, was renewed and a city councilmember was appointed to serve on the Webster City Daycare board. In 2019, an updated contract waived the remaining interest on the loans.

The daycare is seeking to undergo renovations. It wants to redo one of the interior rooms to expand and rearrange in a way that will allow for two new classrooms. The project would cost approximately $130,000. In light of the city’s contract and the daycare's needs, the city staff advised reissuing the loan to the daycare in a way that gives the deed to Webster City Daycare. This means the renovation would not have to go through the processes associated with city and government projects.

The project would open 72 more spaces in the daycare, which would help cut into its long waiting list. The additional revenue would pay for the staff needed for the extra children. 

The daycare also has asked the county and city council to provide matching grant funds to help pay for this project. The daycare has restructured its finances and now plans to pay $2,000 a month toward the loan with the city, which would have it paid off by May of 2029. The daycare is looking to make lump sum additional payments as it strives to have it paid off by 2025. 

The board agreed to change the structure of the loan for the daycare, and members said they would consider the possibility of providing the matching funds as well.