Capital Loan Guarantee for Earl Haig Community

Day Care Centre to Develop a Child Care Centre

The Policy and Finance Committee recommends:

(1)the adoption of the Recommendation of the Community Services Committee embodied in the following communication (June 17, 1999) from the City Clerk; and

(2)that the General Manager, Transportation Services Division, be requested to review and/or absorb some or all of the cost of funding a barrier fence to protect the playground, and report thereon to the Policy and Finance Committee, if necessary:

Recommendation:

The Community Services Committee on June 17, 1999, recommended to the Policy and Finance Committee the adoption of the report dated June 1, 1999, from the Commissioner of Community and Neighbourhood Services respecting the Capital Loan Guarantee for Earl Haig Community Day Centre.

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(Report dated June 1, 1999, addressed to the

Community Services Committee from the

Commissioner of Community and Neighbourhood Services)

Purpose:

The purpose of this report is to seek Council approval for the City of Toronto to provide a loan guarantee for Earl Haig Community Day Care Centre to develop a child care centre.

Funding Sources, Financial Implications and Impact Statement:

The former Metropolitan Toronto Council established Criteria for Capital Loan Guarantees for non-profit child care programs in the report "Capital Loan Guarantee for John Wanless Child Care Program" adopted June 1, 1994. This report proposes that the City of Toronto guarantee a loan of $1 million for the development of a child care program at 1671 Queen Street. While the City would not be providing direct funding to this project the City would need to meet requirements for certification under the established debt and obligation limit.

Recommendations:

It is recommended that:

(1)subject to sufficient performance safeguards, the City of Toronto guarantee a capital loan of up to $1,000,000.00 to be arranged by Earl Haig Community Day Care Centre;

(2)the nature and terms of the guarantee, including any requirement for potential certification under the established debt and obligation limit, be subject to the concurrence of the Treasurer, City Solicitor and the Commissioner of Community and Neighbourhood Services; and

(3)the appropriate City Officials be authorized to take the necessary action to give effect thereto.

Council Reference/Background/History:

Earl Haig Community Day Care Centre is proposing to develop a new child care facility named the Beach and Child Family Centre at 1667-1671 Queen Street East. The proposed centre will serve 113 children from birth to school age. Earl Haig Organizations currently operates the Earl Haig Community Day Care Centre which serves 136 children from birth to 12 years of age. The organization has a history of 18 years of service to the community and has had a subsidy contract with the municipality since 1981.

The proposed new location offers the opportunity to significantly increase the service available to infants and toddlers. The organization, while operating in a fiscally solvent position does not have sufficient funds to pay for the construction costs of the new facility. The Province of Ontario no longer funds major capital costs of child care development. As a result, there have been significant barriers to the growth of child care services in support of the principles of service equity.

The former Metropolitan Toronto Council approved loan guarantees for Allenby Day Care Centre, John Wanless Child Care, and Charlottetown Blvd Child Care and established criteria for Capital Loan Guarantees in a report adopted by Council June 1, 1994.

Comments and/or Discussion and/or Justification:

The Earl Haig organization has submitted a business plan to the Department in support of its application of a City Loan Guarantee. The construction costs will be funded through a loan and the loan payments will be financed through parent fees. In order to successfully obtain a loan from a commercial lender, the organization requires a loan guarantor. A preliminary review by Departmental officials of the centre's financial plan has been completed. Further discussions with the operator and the Treasurer will continue to refine the business plan but the preliminary analysis indicates that the plan is viable.

It is expected that this project will meet the established criteria for loan guarantees.

Conclusions:

The Department recommends that Council approve a loan guarantee for Earl Haig Community Day Care Centre subject to sufficient safeguards and in accordance with the established criteria.

Contact Name:

Brenda Patterson, Director, Contract and Quality Compliance, Children's Services Division

Tel.: 392-3319; patterso@csis.csis.csd.metotor.on.ca

The Policy and Finance Committee submits the following communication (June 17, 1999) from Councillor Sandra Bussin, East Toronto, Ward 26:

I strongly endorse the report before the Policy and Finance Committee for a capital loan guarantee for the Earl Haig Community Day Care Centre proposal.

I consider Earl Haig Day Care Centre to be one of the finest providers of children's care facilities in East Toronto. The proposal before you is a very comprehensive one which will provide another satellite day care facility. This will include a most needed 24 hour hospice care program.

As a former School Trustee, I have been involved with this day care board and management and consider it to be of the highest calibre. The Board is professional, responsive and financially viable.