A few weeks ago, I attended the Mid America Economic Development Council's "Best Practices" conference in Sioux Falls, South Dakota. The conference lived up to its name, with each session featuring economic development professionals sharing their successful strategies in various key areas. Topics ranged from classic themes like business attraction and expansion to emerging issues such as childcare. One of the most insightful sessions, "Community Development Table Talks," allowed for attendees to choose a topic they wanted to focus on and sit at a table with others to discuss, share challenges, and solutions. I choose to attend the childcare roundtables, as I have heard a lot of lamentations about the growing needs and costs of childcare across the nation, but have yet to hear of a solid "best practice" to address it–until now. The community of Le Mars, Iowa has tackled their growing need for childcare in a unique way.
Le Mars, Iowa, a city with a population of around 10,600, has creatively addressed its significant childcare shortage through a strategic public-private partnership. According to a study by the Le Mars Business Initiative Corporation (LBIC) in 2021, the community faced a shortage of 433 licensed childcare spots. In response, LBIC brought together local businesses, childcare providers, and community leaders to form a solution-focused committee. This collaborative effort resulted in the establishment of the Le Mars Community Daycare Center (LCDC).
The LCDC took a significant step by purchasing an existing childcare facility previously run by Building Blocks Childcare and Preschool. This facility is now leased to The Crittenton Center, a nonprofit organization that will operate and expand childcare services in the area. By alleviating the burden of building expenses, which are typically the major cost for childcare providers, this arrangement allows The Crittenton Center to offer better wages to its staff. High turnover rates in childcare are often due to low wages despite high childcare costs for parents. By addressing this issue, the LCDC not only enhances the quality of care for families but also ensures greater stability and retention among employees. This initiative is part of a broader, five-year strategic plan to meet the community's childcare needs, demonstrating a proactive approach to addressing this critical issue.
At first glance, this may not seem like an "economic development" challenge, but at its core, the childcare issue is fundamentally about people. When families lack access to qualified childcare facilities, they face limited options: stay at home or move somewhere else. This situation quickly becomes an economic development challenge as workforce is one of our key assets in the community. Without it, businesses will struggle to find employees. With the growing demand for childcare this challenge will continue to grow. Communities who are tackling these issues early are giving their community the best shot at overcoming them. They are not only retaining their current workforce talent but also growing it exponentially by attracting new residents. Additionally, they are investing in their future workforce, as the children who benefit from quality childcare and education will eventually become the skilled workforce of the future.
To learn more about Building Blocks Childcare click here.
Crittenton Center: click here
Gage Pace
Economic Development Manager