Federal funds may support day care plan in Luverne

Funding for Luverne’s day care center in the former Tri-State Building may be on the horizon, according to an announcement from U.S. Sen. Tina Smith's office Friday.
She said the Senate Agriculture Committee has awarded the project more than $2.6 million through congressionally directed spending requests.
The preliminary award by the Senate Appropriations Committee would be especially welcome after state lawmakers failed to pass a bonding bill that included Luverne’s request for $3.5 million.
That’s the amount needed to cover building acquisition, renovation, furnishings and equipment.
The federal funds would cover 75 percent of the daycare building improvements with a 25 percent match from local sources. That would be $900,000, based on estimated $3.5 in costs.
In March the city paid $515,000 for the 30,000-square-foot building (recently Total Card Inc) that it will eventually lease to a child care operation.
Since then, city leaders have been seeking financial support in the form of grants and legislative funding. Justifying the need for child care hasn’t been difficult, considering it’s essential to economic development and “a critical part of the social infrastructure of a healthy community.”
Mayor Pat Baustian and Luverne EDA director Holly Sammons testified in support of day care funding at legislative hearings.
They pointed to employers having difficulty attracting and retaining staff due to lack of day care while at the same time the number of in-home providers in Rock County is declining rapidly.
The numbers dropped from 56 providers (662 slots) to 37 (572 slots) between 2016 and 2019. There are currently 28 providers (336 slots) in 2022.
As a result, young families employed in Rock County are choosing to live in Brandon and Sioux Falls for more child care options.
Local government officials are taking the lead on a child care center in light of the fact that the private sector is unable to acquire or build a child care center based on costs, local rates and wages
However, they also recognize that local resources alone can’t support significant investment needed for one-time capital investment for renovation.
That’s why funding support is so important.
With the anticipated $2.6 million in congressional funds — and hopefully more from the state, the city can fund ongoing operations once the center is established.
The city will sign a management contract with a non-profit that will be licensed to offer child care services. The lease will be $1 per year, and they’ll partner with local businesses and organizations to help support the center.
A local non-profit board is working on plans to remodel the building and will oversee operations.
Two tentative concepts show how the open-floor building can accommodate up to 186 children ages 0 to school age and the support staff.
Specific rooms will be developed for infants, preschoolers, toddlers and school-aged children. An indoor gymnasium would also be designed in the facility.
The building already has an enclosed vestibule, offices, a kitchen area, a conference room, a bathroom and a garage, and more bathrooms would be added.
The structure was built in 1974 north of the pool and fitness center on Roundwind Road on 4.7 acres of land. Outdoor play areas will be developed on the large green space on the building’s south side.
Depending on the funding, bids and operating agreements, the building won’t be ready for occupancy until late in 2023.