HomeMy WebLinkAbout840888.tiff RESOLUTION
RE: DENY AP2LICATION OF KINDER-CARE LEARNING CENTERS , INC . FOR
INDUSTRIAL DEVELOPMENT REVENUE BONDS
WHEREAS , the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
Rule Charter, is vested with the authority of administering the
affairs of Weld County, Colorado , and
WHEREAS , the Board of County Commissioners held a public
hearing on the 19th day of September , 1984 , at the hour of 10 : 00
o' clock a.m. in the Chambers of the Board for the purpose of
consideringthe application from Kinder-Care Learning Centers ,
Inc. for Weld County to issue $600 , 000 in Industrial Development
Revenue Bonds , and
WHEREAS , said hearing was conducted in accordance with the
1967 County and Municipality Development Revenue Bond Act, Sec-
tion 29-3-101 , et. seq. , CRS, as amended, and
WHEREAS , the Board of County Commissioners heard all of the
testimony and statements of those present, has studied the re-
quest of the applicant and all of the exhibits and evidence pre-
sented in this matter, and having been fully informed, finds
that this request shall be denied.
NOW, THEREFORE , BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado, that the application from
Kinder-Care Learning Centers, Inc. for Weld County to issue
$600 ,000 in Industrial Development Revenue Bonds be, and hereby
is , denied.
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 19th day of
September, A.D. , 1984 .
BOARD OF COUNTY COMMISSIONERS
ATTEST : n /7 4- • WELD COUNTY , COLORADO
(�L�,,,l 2(.AI'W. n..,.,i ) n
Weld County lerk and Recorder i`,, d..„44,___
and Clerk to the Board Norman Carlson, Chairman
i
BY C714---1-ii----r_, �_� ytrJ
o, a<Nv ,
D�puty County Clerk Jacqu ine J son, Pro-Tem
APPROVEp AS TO FORM: /T iYl
��
� ene R. Bra to
County Attorney uck Car so
LHR 2211 EXCUSED S4oa ::
John T. Martin
t-1 Mnc6
HEARING CERTIFICATION ECCKET NO. 84-52
RE: INDUSTRIAL DEVELOPMENT REVENUE BONDS, KINDER-CARE LEARNING CENTERS, INC.
A public hearing was conducted on September 19 , 1984, at/10JDOA M; with
the following present:
Commissioner Norman Carlson, Chairman
Commissioner Jacqueline Johnson, Pro-Tem
Commissioner Gene Brantner
Commissioner Chuck Carlson
Commissioner John Martin - Excused
Also present:
Acting Clerk to the Board, Tonmie Antuna
03 County Attorney, Thomas O. David
fatocamoaxmodowdoaxmiguitcldom
Director of Finance & Administration, Donald Warden
The following business was transacted:
I hereby certify that pursuant to a notice dated August 15, 1984, and duly
published in the La Salle Leader on August 23, 1984, a public hearing was
conducted to hear the application of Kinder-Care Learning Centers, Inc. for
Industrial Development Revenue Bonds in the amount of $600,000. Mr. Warden
made this matter of record. Mr. Warden said that in addition to the publi-
cation in the La Salle Leader, all owners of day-care centers in Greeley
were notified by letter of this hearing. He said the Greeley City Council
had voted 6-1, at their meeting of September 18, 1984, to recommend approval
of this request. Kurt Kaufman, Attorney for law firm of Sherman & Hcmard,
bond counsel fo:: the applicant, came forward to present this matter to the
Board. Andy Neilsen, Consultant for Kinder-Care, gave a brief presentation
also. Those coming forward to voice their opposition to this application were:
Ann Heinen, Rex Andrews, Sandy Bright and Mabel Crane. Mr. Kaufman and Mr.
Neilsen responded to comments made by those opposing. Following discussion,
Commissioner Johnson moved to deny the application for Industrial Development
Revenue Bonds in the amount of $600,000 submitted by Kinder-Care Learning
Centers, Inc. and gave her reasons for so moving. Commissioner Brantner
seconded the union. After further comments by the Board, the motion carried
unanimously.
APPROVED:
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO e //
Norman Carlson, Chairman
ej._- ••� e �► e Jo o , Pro-Tenn
Gene R. Brantner
i7Z -� -
Chuck Carlson
r, _ ' EXCUSED
Arr'EST (!»} 1 ?/ ` John T. Martin
Weld 'County Clerk and Recorder
and Clerk to the Board
De uty Ccunty Clerk''
TAPE #84-83
DOCKET #84-52
LHR 2211
ATTENDANCE RECORD
DATE: September 19 , 1984
TODAY' S HEARINGS A:2E AS FOLLOWS:
IDRB, Kinder-Care ::,earing Centers , Inc.
Multi-Family Housing Development Bonds , Bittersweet Place Associates
Multi-Family Housing Development Revenue Bonds, JLB Construction, Inc.
PLEASE write or print legibly your name, address and the DOCKET # (as listed
above) or the applicant ' s name of the hearing you are attending.
NAME ADDRESS HEARING ATTENDING
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NOTICE
PUBLIC HEARING
INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR KINDER-CARE LEARNING CENTERS , INC .
Docket 84-52
NOTICE IS HEREBY GIVEN of a hearing before the Board of County
Commissioners of Weld County, Colorado, on the 19th day of
September 1 )84 at the hour of 10 :00 A.M. in the Weld County
Commissioners hearing room, first floor, Weld County Centennial
Center, 915 10th Street, Greeley, Colorado, for the purpose of
considering the application from Kinder-Care Learning Centers ,
Inc. for Weld County to issue $600 , 000 in Industrial Development
Revenue Bonds. The proposed bond issue is for the construction
of a 6 , 455 square foot child care center in Greeley, Colorado.
This procedure is in accordance with the 1967 County and
Municipality Development Revenue Bond Act, Section 29-3-101 , et.
seq. , CRS 1973 as amended.
Copies of The application for Industrial Development Revenue
Bonds are on file in the Office of the Clerk to the Board of
County Commissioners located on the 3rd floor, Weld County
Centennial Center, 915 10th Street, Greeley, Colorado and may be
inspected daring regular business hours.
Following the close of the public hearing, the Board of County
Commissioners will consider whether or not to proceed with the
issuance of Industrial Development Revenue Bonds.
All interested parties under the law will be afforded an
opportunity to be heard at said hearing.
This notice given and published by order of the Board of County
Commissioners, Weld County, Colorado.
DATED: August 15 , 1984
THE BOARD OF COUNTY COMMISSIONERS
BY: MARY ANN FEUERSTEIN
COUNTY CLERK AND RECORDER
AND CLERK TO THE BOARD OF
COUNTY COMMISSIONERS
BY: Tommie Antuna , Deputy
PUBLISHED: August 23 , 1984 in the LaSalle Leader
f.
Affidavit of Publication
LEGAL NOTICE
NOTICE
S:A:c Cr CCLORACO. 1 64 PUBLIC HEARING
County el Weld. 1 INDUSTRIAL DEVELOPMENT
REVENUE BONDS FOR
Paul Massey KINDER CARE INO
I. of CENTERS INC.
said County et Weld. being duly uworn. say that Docket 00.53
I am publisher of NOTICE IS HERESY GIVEN of a
hearing before the Beard of County
T a cal 1 P T aariar Canminienors of Weld County,
Colorado, on the 19th ay of
that the seine is a weekly newspaper of general September 1964 at the Mgr of 10:00
tdrQ3lCbgn ewe printed andA.M.In the Weld published in the ty Commis-
sinners hearing room, first f ,
Mum at La Salle nriee. Weld County Contannlel Center,915
IOM Street Greeley, Colerotle,ter
in said county and slate: that the notice or adver- me purpose of censidoriha me
11sea end, of which the annexed is a true copy, application trem Kinder-Care
Learning Cochin, Inc. ter Wow
has been published in said weekly newspaper County b Issue af00,000 in Indus-
trial Development Revenue Bonds
for one _caneectitve The proposed bend issue is for the
weeks: that the oaten was pualished in the construction el.A655 square foot
child care center in Greeley, Colo-
regular and entire issue of every number ei said redo. This procedure Is in accord•
newspaper during the period and time et pubii• ante with the 1967 County and
Municipality Development Revo-
cation el said notice and m the newspaper nue Bond Act, Menem 294-101, et.
proper and not in a supplement'thereof: that the sell- CRS 1973 as amended.
lint publication of said notice wcs contained in Copies of the application for Indus-
the issue of said, newspaper becninc dab the trial Development Revenue Bonds
are on Hie in the Office of the Clark
day el August .A.D.. 14 8 •1 b the Beard of County Commission-
and the lost pubs^urn thereof. in rye suss• of ors located on the 3rd floor, Weld
C� County Centennial Center,915 tofu
said newspaper bearing date. the ....—..i day el Street,Greeley,Colorado and may
be inspected during regular busin-
ess 19�4 that the said hours.
Following the close of the public
La Salle Leader hearing, the Board of county
CommissioMn will consider who-
has been published continuously and untnterrupt- the' or not b proceed with the
issuance of Industrial Develop-
wily during the period at et least lihy-Iwo con-
srvhve wines nest prior to the lint issue thereof meat Revenue Bows.
containing said note or advertsement above
released tat and that said newspaper was at the - . will All Irate.and
potties war the law
time of *an of the publications of said nonce. be heard d lit a an haelogelgMrtenity to
duly qualified for that purpose within the mean- This notice given and
ebed by
in; at an act, r entitled. "An Act Concerning Legal Mier et the pets of, M,
Notices, Advertisements and Publications, and Commissioners,MhtfdCalmly,Colo-
rado.
the Fees at Printers and Publishes theteoi. and .
to Repeal all Ara and Parts of Acts in Conflict DATED:August 15, 1900
with the Prnrisicns of this Act"approved April 7, THE SOAR DOF COUNTY
1921, and all amendments therec:., and pastime COMMISSIONERS
laity as amended by en em approved. Morels 33. WELD COUNTY,COLORADO
19^9. 4 a act approved M I!. 1931. BY:MARY ANNFEUERSTEIN
COUNTY CLERK AND
�� ���Lt / "j.r RECORDER AND CLERK TO
J �S{LL/Ci/.: �,r,;3.d,et, THE SOARD
�/ P sh•r BY:Tpmmh Antrim,Deputy
Subscribed and_t wo'•i to before me this t .... Published to me La son. Leader
• ��I August 23, 1964
Goy a' /��C',.. ' '.ti!i— -. AA !9 .r-s (1 Ct.)C9/-/C
My tefDttnstet, esptres (;7 ,?i�� — ___
Notary Public
I
•
•
August 15, 1984
SENT TO ALL DAY CARE CENTERS
Weld County 151 in receipt of an application for the issuance of industrial
development revenue bonds in the amount of $600,000 for Kinder-Care Learning
Centers, Inc. The funds would be used to construct a day care center in
Greeley.
It is the policy of the Board of County Commissioners to attempt to notify all
competitors in Weld County of industrial development bonds that may impact
current businesses. The bond application will be considered by the Greeley
City Council on Tuesday, September 18, 1984 at their regular meeting and by
the Board of County Commissioners at a hearing scheduled for Wednesday,
September 19, 1984 at 10:00 a.m. Any input for or against this issue may be
provided to the Council or Board prior to the above meetings in writing, or
verbally' at the meeting times.
Questions concerning this matter can be addressed to Don Warden, Director of
Finance and Administration, at 356-4000, extension 4218. A copy of the
application is available for public inspection in the Clerk to Board's Office
located at 915 10th Street, Room 317, 8:00 a.m. — 5:00 p.m. , Monday — Friday.
Very truly yours,
BOARD OF COUNT( COMMISSIONERS
Norman Carlson., Chairman
NC/ch
Pin r r-.y pp—pr „nis
Ell!)
LI if
I S E P 1 81984 N'
IlU
September 17, 1984 GREELEY, COLO.
Children's Resource Network
R.O. BOX 2522
GREELEY, COLORADO 80631
GREELEY CITY COUNCIL
The Board of Di ^ectors of the Children' s Resource Network of Weld County would
like to urge the city council to deny the $600,000 Industrial Bond which Kinder-
Care Learning Centers , Inc. has requested.
Being a Coalitipn of early childhood providers and service agencies, the Children 's
Resource Networc Board of Directors objects to the city's issuance of the industrial
bond for the following reasons:
* Presently within Weld County, there are 697 licensed day care center
slots aid 1,839 licensed day care home slots . Such large numbers of
existing licensed providers offers the citizens of Weld County a
variety of early child care facilities and philosophies from which
to chopie.
* A recent random survey of day care facilities indicates that by
far the majority of these operating day care providers are running
less than 75% of their licensed capacity. Thus , the existing facil -
ities are not even functioning to their licensed potential .
* Based on the above statistics , CRN does not object to Kinder-Care
joining our community. CRN does object to the issuance of the
Industrial Bond as the issuance of such a bond would counter the
procedural resolution that City Council adopted from the County's
inducement resolution which protects similar businesses from undue
hardships.
Again, Children' s Resource Net Work strongly urges the Greeley City Council to
take existing day care homes and centers into account and to deny Kinder-Care
the Industrial Bond.
Ann K. Neiman, Chairman of the Board
Children 's Resource Network
cc: Weld County Commissioners
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._.:'it=r'.:?:I;at:t:?.1 ' I:=r )'. . ::Id . c:1t_h,;.r :..•r .c:'1'e centers ri.:)%4 ':I`,-1:lri;:l tl •1•'• .1 •. _ i.
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-icy :t.,!_.:.i se . M:- (::;.:i t'."vi: c>E'..Ir• : nt?:J 4l...i . :.l'1 1:r:'is V.l c:I::•° c:li3 r' ...:iir a i'.,:.r t .
.? : e n s i e i . _.. these ,w c IY'{_-d i :3. 'Were .r r e 'l':i c:' 1. :1,r".�t:' A a ? __::t I' : :Lint . .
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•,e?t another child _::ir-•r? taci 1. i.t.',• u..)lesi, the .:;resent c:?-r ? p 'C' ✓:. :J'?r't. "r.
infer-lc):- L-i quality ! P k.:L r'i'.. r'-E.:=.r _:'. i'j•'..iM)rx'ryl_il"' . the !=.et:.r_Ir'::I r ic?..• : .:Irl -. -1r- w---
Care would not e nt",c9.r)c: ._ the commuh - tv is the 1.•ctc:k ct g1_.ic'. . i. ' , -I Its
prtiur'i:Lcri. Let mE. r•::p.1 :?L.Lr•i. !-..Iv ../....; '. tr . I";:it'tl..t'-'('t. ..::h11.O ': t. .. ..:. .. ..l ,
Inten=•i . e .::C:'ia.':%it:..y . The iiailhelit l.L,:.1. Jt_y car£•? is s+?'».hC:) %.t:iscJ •!Ji.'::r: 1 •. o,
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`las an ti-?::'::e?l lent art: ::J.a or cia.+ ':.: ..r•e ,••1h1C:r1 :t:r"£:'se-ee'•_ I F11. :.. ?{: I.L'1t. . ! IC:::t
.:1{ the t:.ic?:.`.:.?!• l:I:a.'y' :::tea" e fa: . .1 :L f: €.i t,t!(it:I4:'''I: ,:!() t::: }t.:.'n c:lf t:'-:I:- : I .:Ir : :..-
! nccrr1e .-.?n ,J.e:ges. in ••"..a.nde! -i_,:?r'e?' bonc: apps 1 '__ctt1. )1"l msa t ar• . G.• 1 -- ':!;E y.
L n'1 : tt:elte '.!'1 ,.t. the`.' sr.:end t:1:i.1 l' :::.1 ': of -heir •'Ir't?'e:':: on wag-,.F. ::•L rl::r' ;i :
-lay care center' s 1w.-tc:e aic:sa :s I.?eq: n at. ;'n0 t•xtencJ only ::.1. '.c._,. 1 . -t:.. .e
the rnl n l mutit wage, t.l i:! ':i in zt t ll-i that t:E'n-1:.F?r is .1 . kri:' Pencil l r:?r: ::1-: r. L .,,, 4 ",.
:More staf t than does tinder-Care t'or• the same number of {:i'1'. 1:.+ir-•:-.r'•.
This s means tha't. the I,r'oup size is 4374 large - An a 1',l nc:ltc?" ' . !' •i : :'!or :.are
':c.
facility than it is at any center with ao 5()% at gross .' ;et :'j fc.r
wages. I- -i ti+::s:;ITI:)L t3, if <Rt a "c:.IU,_i_ :l .f Y •fact :l t:y t_:na ,1yli+ 'i:!.:Ie .:I' ... .r. :t. .:
wer--• ;.0 chi] ldren per staff member , 3i wouid be 14 t:)er- as . ,-{ rl_•?tr)I_r:"
Kinder- .:,_t?' . in l:irt:ii•:. . Lo s:1't't ecL and r_ti,r:,!' 'r' I:If i:l:_i;.. :"i t f ,t'I. :i :.
Kinder--_ ?.r o cannot iit _ or bi 1. ] t. or'c,'.in. b? ca!1=3e the c; -'R.t.!g-. ::,.i tA1c1r. .I.
a i i•Ja y._ ..7O,ri•+ r:)'_t!. r.,!, ! f 't.hts? .::I' . .t t:lr ..'!" ,_tr ... I'11_l't: all,-. or it!:) ! .: t _ t' .. t',_. ';-;,-
t hci.', they , .:,i',rit: t E:' t ) ,.,tit'' .I'1pr"c:pr at, pre•-5: noc?s _:Tic: ':-'1 ). -
1: 1. fit.:. ..:1':.. r ' Cl t r'I e,-.i :. .t 4=: .•t:':'l (:•'f all rlls•:' C1I::t• I z'i ::)s' . q., ..'l'-.:. .
'alai I 3.m ': E.'-'::t.'' ? ). r'," i. t't 'i-i t':..tt; •n i Wt'i].c ch. J. _! € n .. _. .;"r :).
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ft '_? } :tt: . , , -1 b'?' t..._;tr,:. 1 4.1% :t] ft t?r_ r1C : n e:.t:::•fti I'!i] E b?.... '.1 --:!
▪, ,-ic.I,.;t:..-I::,::. :.. I:)•::;':t r'it :'li i..t g ..-I-' nouv ' y 1'! Qt:: if 1.) : ::1-i•;Rr cI.i;ci ;) .. . : 'e
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' ¢ 919 25th Street . Greeley, Colorado 80631 . 356-0510 . Hours: 6:30 AM to 6:00 PM
APPLICATION FOR ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS
SUBMITTED TO
WELD COUNTY
BY
THE FRAZER LANIER COMPANY, INCORPORATED
This Application for Industrial Revenue Bond Consideration is
hereby submitted to the Board of County Commissioners of Weld
County, Colorado.
BORROWER: Kinder-Care Learning Centers , Inc.
4505 Executive Park Drive
Montgomery, Alabama 36116
UNDERWRITER: The Frazer Lanier Company,
Incorporated
Post Office Box 6178
Montgomery, Alabama 36194
Contact: John Rucker
Phone: (205) 277-5826
BOND COUNSEL: Sherman & Howard
2900 First Interstate Tower North
633 Seventeenth Street
Denver, Colorado 80202
Contact: Kurt A. Kaufmann
Attorney-at-Law
Phone: (303) 297-2900
TABLE OF CONTENTS
SECTION I Legal Opinion from Sherman & Howard that
the proposed issue is within the intent
of the County and Municipality Development
Revenue Bond Act (Section 29-3-102 [1] )
SECTION II Letter from the Underwriter (The Frazer
Lanier Company, Incorporated) indicating
the marketability of the proposed issue
SECTION III History of Kinder-Care Learning Centers ,
Inc.
SECTION IV Financial Statements and pertinent infor-
mation ;elating to the financial status of
Kinder-Care Learnings Centers , Inc.
SECTION V Resume of Perry Mendel , President of Kinder-
Care Learning Centers , Inc.
SECTION VI General description of assets (and project
proposal) to be purchased with bond proceeds
SECTION VII Payment Schedule
SECTION VIII Inducement Resolution for $600 ,000 issue
Sherman&Howard
IN RENO,NEVADAA N PNITNERP INCLUDING PIIJFESPNN O .CCIHDRNKONS
LAW
Hill Cann deLipk"u and Erwin,P.C.
POST OFFICE BOX 2790
2900 FIRST INTERSTATE TOWER NORTH TELEPHONE: 303 297-2900 RENO. NEVADA 89505
633 SEVENTEENTH STREET TELECOPIER. 303 298-0940 TELEP/10NE 7oz3z3-TmT
DENVER,COLORADO 80202 py� TELIX'. 454368 TELECOPIER 702348-7250
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IRIFRIR K UFNDEf?C0.JR. P'AL J.5CMPUCH CHARLES Y.TANABE ELLEN W.RFATH ALAS B.H.BUCWJWN DOUGLASWJESSOP
MVMCND JJ.RNNJW R LU e�yA�yCH5R�yp STN ROBERI L.BROWN San E.SPENCER REBECCA A. REIS
JANE RLM]BERN TS LL DHM M.RMLLGSHER DAVID H.1N.FER F"MESA N.LUKAS
AR/DEBO ANN AN KPOG
G4iM C.C OM TpApPNC�ICpIDdiE E.WJf.C�E5iER JAMES NG
WLLWM L.LOJ{E ITT E GI.'EENBER6 BEODGRE HRG'
MAIN VaqSEREGORY
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NAICM J A�F€PT =AMT..HWRSHm Ca PART
RAROALAN l�G.MORRIS JR. KENNETH CCORIN�N�E�L Km MIy.JOHNSON ELIZABETH R CARVER
CHMESEDIWA ROM@ CWJLES W.NEWCOM RAVMCNOM PEEN/ CRIm ETEYMAICSON 1141 SB.HOIDEN v+moeno N aeo By
IAMEES E.KWUTZNGER MARK L FULF0i0 JEP.OVE A.BREED .PREiE
DPN H.9ETMOOD FJJAAMMH�S F.VA00 DEE P.WEOR RICIMRD K.RIPIS RK}NRD GO�NZALES EARL M.H.L.
W,WC.RAMIE MUER V.SHIM JOAN C.TAGGAIr RAY J.HERNANDEZ FRANK rAKKAS
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OWIJE F KENNETH B. FALL C.CNW FEGGV DERIVING'"NIGHT JOIN 0.SXFNGSHIY
DAVID R. R DO)AS W.FEE STANLEY M.RAINE JEFFREM STOUR STEPHRN C.PETERS PRANK w.nlol. SCA
TT�FqK���yy��55 PETER B.NAGEL CHPE1CH RJJ NOHJIGS DAVID M.SUMMERS ARNOLD A.HA$CRD
STEPHEN M.BRETT GYNIYAC.6ES0N GREG H.SCA ENDER RANoAW.P.SIEICHEN STEPHANIE W.ATENCIO •440 asnmeR In C[nob
August 10 , 1984
Board of County Commissioners
Weld County
P.O. Box 758
Greeley, Colorado 80632 `
Gentlemen:
Weld County, Colorado
Industrial Development Revenue Bonds
(Kinder-Care Learning Centers, inc. Project)
Series 1984
We have been asked by Kinder-Care Learning Centers, Inc. , a
Delaware corporation (the "Corporation") , to act as bond counsel in
connection with a proposed issue of industrial development bonds by
Weld County, Colorado ("Weld County") pursuant to the Colorado County
and Municipality Development Revenue Bond Act (the "Act") . The pro-
ceeds of the bonds will be used to finance the acquisition and
improvement of land located within Weld County for the construction
and equipping of a building thereon for use as a child care facility
(the "Project") . The total cost of the Project to be financed by the
bonds, including issuing expenses, is estimated by the Corporation to
be approximately $600 ,000.
We have been informed by the Corporation that the Project,
when constructed, will be used as a child care facility. We under-
stand that the Corporation has not purchased, or contracted for, any
component of the Project. The Corporation has informed us that a
substantial number of people will be employed either directly or
indirectly in connection with the Project.
Sherman&Howard
Board of County Commissioners
August 10 , 1984
Page Two
We have reviewed a copy of the County's Development Revenue
Bond Policy which requires applicants for industrial development bond
financing to furnish, among other things, an opinion of municipal
bond counsel. This opinion is submitted pursuant to said policy.
Based upon the foregoing facts, we see no legal obstacle to
financing the Project under the Act. The Act was held constitutional
in Allardice v. Adams County, 173 Colo. 133, 476 P.2d 982 (1970) .
The Project constitutes a "business or commercial " project as set
forth under the definition of "project" in Section 29-3-103(10) (a) of
the Act. We are also satisfied the facts outlined above fulfill the
"public purpose " requirement of the Act. Therefore, in our opinion,
the proposed financing of the Project falls within the intent and
meaning of the Act.
Respectfully submitted,
Ci* V• \Wy�
THE FRAZER LANIER COMPANY
INCORPORATED
INVESTMENT BANKERS
April 3, 1984
Weld County
Colorado
Re: Weld County, Colorado, Industrial Development Revenue
Bonds (Kinder-Care Learning Centers , Inc. Project)
Series 1984
Gentlemen :
Our Firm serves as investment banker to Kinder-Care Learning
Centers , Inc. The above captioned issue will be purchased by
RepublicBank Dallas (Texas) under the following terms and condi-
tions :
1. The interest rate shall be 70% of the prime rate of
RepublicBank Dallas and a conversion to a fixed rate
with the request of Kinder-Care and the consent of
RepublicBank Dallas .
2. The Bonds shall have a stated maturity of 20 years
from dating, with an option on the part of Republic-
Bank Dallas to "put" at its sole discretion in the
following percentages of the initial principal
amount :
Percentage
Year of Principal
6 and 7 10% each year
8 and 9 20% each year
10 40%
In addition to the foregoing, the commitment to purchase by
RepublicBank Dallas is conditioned upon the approval of the legal
documentation and the unqualified legal opinion of Sherman &
Howard. With kindest regards , we remain
Sincerely yours ,
THE FRAZER LANIER COMPANY
Jo n B . Rucker
Vice President
JBR :bv
cc: Mr. Jack A. Hanchrow .
POST OFFICE BOX 5190 MONTGOMERY,ALABAMA 36103 205/265-8483
l
Kinder Care
• . • About Kinder-Care
•
Learning Centers, Inc.
In July of 1969 Kinder-Care Learning Centers, Inc. continued to grow at an incredible rate. In August, 1974
opened its first child care center in Montgomery, the present corporate offices were opened and the number
Alabama. President and Founder Perry Mendel worked of centers had grown to 62 with 4,250 children enrolled.
diligently with his associates to design and finance a New corporate offices are under construction during
quality, comprehensive child care program desperately 1983-84 in Montgomery,Alabama,and by the end of the
needed by a spiraling number of working parents. Today, 1984 fiscal year the projected number of operational
Kinder-Care is the world's largest proprietary provider of centers is 950.
child care services operating over 800 centers in 40 states Despite its size, Kinder-Care remains a "community"
and Canada. and "neighborhood" operation. Each director has the
Seven centers opened during the first year of necessary autonomy with corporate guidelines and
operation. Professionals in the fields of nutrition,physical assistance from district managers to operate the center
fitness, early childhood education and health served as and select the staff. Kinder-Care staff is provided the
consultants to the grow.ng company. Kinder-Care's opportunity and the resources to plan exciting,active and
exclusive GOAL program (Growth Opportunities for creative programs for their children. The finest of indoor
Achievement and Learning) combines a safe, healthy and outdoor play and audio visual equipment is provided.
environment designed specifically for children with a Particular care is taken to select staff who are warm and
developmental curriculum to provide a fun, but responsive to the young child. The size of the corporation
challenging, learning program. Children learn about contributes to a tremendous interchange of ideas,projects
changing themes by exploring Discovery Areas such as and methods from all across the nation. Children of our
Library, Homeliving, Construction, Math, Creative Art, mobile society often transfer from one center to another
Manipulatives, Science, Music, Sound Table and assured of another quality teaming experience near their
Woodworking. Weekly program guides assist teachers in new home. Kinderoo,the lovable Kinder-Care ambassador
planning the day's activities. KLUBMATES'", Kinder- is welcomed nationwide at grand openings, parades and
Care's school age club for children 6-12 years old offers community events. Kinder-Care has introduced a new
opportunities for achievement in activities such as First program entitled KINDUSTRY'",benefit based child care
Aid, Ecology, Communications and many other subjects. for the 80's offering business and industry quality child
The children earn achievement badges through individual care for their employees at an affordable price. The
and group activities throughout the year. Field trips,arts Kindustry plan is offered through the combined
and crafts, swimming and sports are an important part of contributions of Kinder-Care, employers and employees.
the KLUBMATES and K]NDER-CAMP summer. Each center is an integral part of this huge operation...
Kinder-Care has achieved stature in the business each employee enjoys the satisfaction of superior service
world...the financial expertise of Perry Mendel and his and fiscally sound business is the finest tradition of
Executive Vice President Richard Grassgreen has brought private enterprise. Kinder-Care is the leader in the rapidly
the corporation substantial recognition in the world of growing child care industry.
finance. In 1971 the corporation went public and has
- - '
a
HAI. . . . about Kinder-Care
Learning Centers, Inc.
'der Cares
t July of 1969 Kinder-Care Learning Centers, incredible rate. In August, 1974 the present Cor-
)pened their first Center on Sunshine Drive in porate offices were opened and the number of
rgomery, Alabama.For many months prior to Centers had grown to 62 with 4,250 children
:ime Perry Mendel, President and founder of enrolled-1979 brought the celebration of Kinder-
:orporation, worked diligently with his asso- Care's tenth year, along with the acquisition of
to design and finance the kind of quality Mini-Skools, Limited, a Canadian Corporation
care so desperately needed by a spiraling that operated eighty-eight child care Centers, four-
xr of working parents. Kinder-Care has teen located in Canada and seventy-four through-
n to be the world's largest provider of child out the United States. In 1980 the projected
services, operating in over thirty states, and number of operational Centers is over 600.
da. Despite the "Corporate image", Kinder-Care
luring the first year of operation seven Cen- remains a"community"or"neighborhood" oper-
opened. Important persons in the field of ation. Each Director has an amazing amount of
don, physical fitness and early childhood autonomy in operating her Center. She selects her •
h and education served as consultants to the own staff and has supervision and guidance availa-
ing company. A complete operations manual ble to her from her Area Supervisor who oversees
written by Corporation Vice President, A.E. ten Centers. The Regional Directors provide the
reau, a highly experienced educator. Kinder- Home Office contact and management needed to
s exclusive GOAL Program(Growth Oppor- keep each of the Regions running smoothly.
.es for Achievement and Learning) combines Kinder-Care staff has freedom to plan exciting,
e, healthy, developmentally sound environ- active and creative programs for their children.
with a solid growth curriculum to provide a The finest of indoor/outdoor-play and audio vis-
,rehensive educational program. Through ual equipment is provided. Particular care is taken
:hanging themes children explore the follow- to select staff who are warm and responsive to the
1iscovery Areas: Library, Horneliving, Con- young child who is in need of"a home away from
don, Math, Creative Art, Manipulatives, home". The size of the Corporation contributes to
ce, Music. Sound Table, Woodworking, and a tremendous interchange of ideas, projects and
tkly theme guide assists the teacher in plan- methods all across the nation. Children of our
the day's activities. The After-School pro- mobile society often transfer from one Center to
and the Summer Day Camp program offer another, assured of another cheerful, active learn-
er challenge to the staff. Field trips, swim- ing experience near their home. Staff, also, often
arm and crafts and sports are related to the find employment with Kinder-Care as they move
y theme for these special groups. from Region to Region.
the business world Kinder-Care has received Our spacious building design is patented, our
3erable notice . . . the sound practices and operations manual and Goal Program are copy-
dal expertise of Mr. Mendel and his Execu- righted and the Kinder-Care logo and slogan are
Vice President, Richard Grassgreen, have registered. Each Center is an integral part of this
ht the Corporation substantial recognition huge operation . . . each employee enjoys the satis-
wor'4 of finance. In 1972, the Corporation faction of superior service and fiscally sound busi-
pub.__ and has continued to grow at an ness in the finest tradition of private enterprise.
"KinderCare . . . where the fun centers on learning."
KINDER CARE LEARNING CENTERS , INC.
SERVICES PROVIDED AND POTENTIAL
Kinder Cage school centers provide child care development
programs in an educational environment. Most of the children
enrolled are between the ages of 2 and 6 , but infant programs
are offered in certain schools and pre and post school activi-
ties for older children are available. Within a school , the
children are separated into their respective age groups , so the
instructor (usually a ratio of 1 -to-10) can follow the curricu-
lum developed and distributed by headquarters . Educational
services range from early childhood manipulative development
programs to a full blown multi-sensory reading program for
kindergarten children. Each school has a kitchen which
provides snacks and lunches in a home-like environment:. The
average cost of 5 day per week, 7 am - 6 pm is $40 or
80' /hour.
A highly disciplined approach in a chain-like structure
allows Kinder Care to offer a range of services over a time
span not available from other organizations . The usual
community nursery school is run by or associated with a church
organization ; services are limited ; educational and development
offerings spotty ; organization , supervision and management
somewhat helter skelter ; and time availability limited. . .most
are half-day programs only for ages 3-5.
We are convinced the Kinder Care approach is powerful and
repeatable. With only 500+ centers and revenues running at a
$65 million annual rate, penetration is still insignificant .
Assuming that management continues to follow their alrady
demonstrated disciplined growth program, we think KNDR can
become a giant company with many thousands of schools .
GROWTH
The first center opened in Montgomery, Alabama in 1969 . A
market exists for a KNDR center wherever 320 people live ; or
where the average family of four has one pre-school child , for
a total of 80 potential enrollees . Thus , the average 80%
occupancy of a 100-child licensed center is assured. Today
there are 540 centers with licensed capacity for 58 , 000
children in 30 states . The growth in centers :
Year Ended May 31 1978 1979 1980 1981E 1982E
Number of Centers 241 335 • 540 700 850(a)
% Change +42% +39% +61 % +30% +21 %
Licensed Capacity 23 , 070 32, 470 58 , 000 76 , 000 94, 000
% Change +48% +41 % +79% +31 % +24%
WHY IS KNDR NOW THE LEADER IN CHILD CARE CENTERS?
Kinder Care is far and away the leader in early childhood
care and development , despite the fact that it started late.
The next largest companies are La Petite Academies (owned by
Cencor) with 200 centers and Childrens World which has 85
schools . Church affiliated nursery schools do not provide full
time care and services are limited to the pre-kindergarten age.
Government day care centers are limited to welfare families ,
excluding the middle and lower middle income families that KNDR
addresses . Mom and Pop operations are spotty, at best. The
alternative to an organized child care center is private house-
hold help . A comparison of fees would be $ 165 per week versus
$35-45 for KNDR for the same hours .
Management attention to the three key elements of educa-
tion, operation and real estate is what has allowed KNDR to
become the leading factor in the child care field. These
elements are discussed in detail later on. The proven results
and field interviews clearly suggest that the company is organ-
ized for growth and exceedingly disciplined in its operations .
We think management has built the structure to run a company
several times its current size.
ECONOMICS OF A KINDER CARE CENTER
Centers are classified as follows :
1 . Immature Center : One which opened in the current
ids a L year. It opened prior to January 1 , revenues
and expenses are recognized as incurred ; for those
opened after January 1st , net expense through the
balance of that fiscal year is capitalized and amor-
tized over a three year period beginning in the next
fiscal year. ( In addition , all pre-opening costs
including advertising, employee training, travel
expense and salaries of personnel readying the center
are capitalized and amortized over three years) . An
immature school usually loses $ 10 , 000 in the first
year.
2. Secondary School : A center opened in the previous
ti'scab_ year which has gone through one September
enrollment cycle. This center averages 60% occupancy
and breakeven is 50%. So , a secondary school makes a
modest: contribution to earnings .
3 . Mature School : A center open through at least two
e t ewes . This center should achieve 80%
occupancy and contribute $ 17 , 500 to pre-tax income .
Past breakeven , profitability is very high ; the labor
variable is about 35% of revenue and all other 15%
So , the incremental profit margin is about 50%.
Capital cost for a 100 child center is about $300 , 000.
The down payment , either through mortgage or lease financing
might be 20% or $60 , 000. Also , the initial consumable equip-
ment load is $9 , 000 and first year losses might total $10 , 000.
So , total cash outlay might be $60 , 000. A typical revenue
build-up is :
First Year Second Year Fifth Year
Annual Occupancy 40% 55% 85%
Student Capacity 100 100 100
Fees/ Student $38 $40 $46
Weekly :
Revenue S 1 , 500 S 2, 200 $ 3 , 700
Fixed Expenses 1 , 100 1 , 100 —7400
Labor 500 800 1 , 400
Other 100 100 300
Total Expense 1 , 700 2, 000 3, 100
Profit (Loss; ( 200) 2015 -TO
Annual Profit (Loss) (S10 , 000) $10 , 000 531 , 000
THE COMPANY
The evolution from an enterpreneurial style management to
a professionally managed organization is in process . Educa-
tional development is spear-headed by a group of early child-
hood educators (the company picked up a very capable educator
in the Mini-Skool acquisition) . Recently , the Lippincott Early
Childhood Multi -Sensory Educational Kit was introduced at the
Kindergarten level. This professional approach to introductory
education has been well received by parents . Learning programs
for younger children are focused by age , an innovation picked
up from Mini-Skools , and this too is well liked by parents .
Kinder Care is not a glorified babysitting service . In
addition to educational training, each school attempts to
develop social behavior , early childhood group interaction and
manipulative techniques . A rigidly designed weekly curriculum
is distributed and followed.
KNDR has begun the development of a program for continuous
training of its educators and staff. The organizational heir-
archy is composed of Regional Directors (there are now 13
regions) , Area Directors , who work with about ten schools and
report directly to the Regional Director and the local School
Director. On-:he-job training programs are being developed in
a field environment then transferred to the organization.
A computerized tracking system developed internally has
improved budgecing models and actual results are pushed down to
the local school level. The local school director receives two
types of printouts . First , a matrix model that enables her to
vary the labor cost (about 35% of revenues) based upon antici -
pated revenue measured by pre-paid enrollment. The other
computer printout deals with actual results (a weekly P & L) .
Area Directors are the field lieutenants of the organization.
They have been promoted from school directors , understand how
to run a good operation and assist their local schools with
procedures to operate them full and profitably . Kinder Care
learning centers are not hamburger stands , but they require
many of the operating control techniques employed by the better
run food chains . Refresher courses and on-the-job training
programs will carry both educational and operating training
down to the school level. Today ' s thirteen regions will soon
be divided up into several zones . The zone managers will have
much more responsibility, with Regional Directors reporting to
them. For a rule of thumb , one Regional Director can manage
ten Area Directors who in turn can handle up to 10 schools .
So , the current organization structure , along with the elemen-
tary computerized control system, could allow this company to
double or triple its current size.
With 540 schools in thirty states , KNDR is beginning to
achieve a National presence. To get this message across , they
will begin a beefed-up advertising program in the late summer .
Their heaviest enrollment period is in September, so they like
to have as many schools open and the advertising program in
full gear prior to this period. Recently , they signed an
agreement with. Dr. Joyce Brothers , the noted psychologist , to
give testimony to the value of the Kinder Care centers . We
believe that , if a parent needs child care services , KNDR is
one of the best alternatives .
THE FUTURE
Management sees no limitation on size ; child care is an
enormous market that is not being satisfied. The organization
can handle fast growth, but not gigantic spurts in the rate of
growth. So , a smooth steady rate of high growth is what they
are able to best handle . New outside capital will be a persis -
tent need since the company will continue to outstrip its
equity base.
Acquisitions have become a continuous part of the growth
process . Kinder Care has always bought a few small operators
either single schools or small chains , but the acquisition of
AID ' s Play Care Schools and the Mini-Skool chain has brought
increased growth and new people with different insights to the
business . Generally , KNDR is able to buy these organizations
for the real estate value.
With the acquisition of Mini -Skools , KNDR' s lease/own
ratio of centers increased from 21% to 33%. A leased school
and an owned school are equally profitable. Once mortgage
payments are complete, interest charges are eliminated and the
owned school becomes more profitable. Of course , leasing
reduces front end cash drain.
KNDR just announced its intention to acquire 87 centers
from 3 separate companies ; 28 or 32% of the centers are owned ,
the rest are leased. Acquisitions are strictly a make/buy
decision. Usually an acquisition is more profitable than a
start-up because KNDR can buy the target school for real estate
values , on terms , and avoid the 2-3 year process of bringing
the school up to speed.
In addition to the 87 schools to be acquired , we expect
another 70-80 schools will be added through internal building.
We estimate that growth in new schools through internal
development will be 20-25%/year, supplemented by acquisitions .
FINANCIAL PROJECTIONS
Low occupancy rate is a self-inflicted condition caused by
a high rate of new school openings . This condition was exacer-
bated in late fiscal 1979 and throughout fiscal 1980 , because
new openings fell in the wrong period ; a large portion of the
fiscal 1979 openings took place in the fourth fiscal quarter ,
so they depressed the occupancy rate of - that year and fiscal
1980. The occupancy rate was also depressed in fiscal 1980 by
the acquisition . of Mini -Skools , which operation lacked a summer
school program and both pre and after school programs . Mini -
Skools occupancy rate ran at 64-65% versus Kinder Care ' s
68-70%. (Further, the method of measurement favored Mini -
Skools rates) . A summer school program and a pre and post
school program have been introduced at Mini -Skools , but the
impact will not be registered until fiscal 1982. Fiscal 1981
will absorb the integration of the 87 newly acquired schools ,
so margins will show only limited improvement . Nevertheless ,
with a smooth opening rate of new schools , Kinder Care ' s
occupancy rate will get back on schedule during fiscal 1982.
In fact , the occupancy rate could be boosted substantially if
the high powered advertising program and improved educational
offerings bring added enrollment .
THE 15 G C)A LS OF KINDER CARE'S EDUCATIONAL PROGRAM
Each Kinder Care Child Will:
1. Learn how to learn through experiences of social growth, group activities and
understanding of others.
2. Be encouraged to develop his creative abilities.
3. Develop habits of orderliness and cleanliness.
4. Develop his physical growth and muscular coordination through educational play.
5. Develop auditory, visual acuity and rhythm awareness.
6. Learn about life through educational play.
7. Develop skills with particular attention to individual differences.
8. Be provided with the basic principles of health and safety.
9. Be provided with an awareness of sound and attentive listening.
10. Be provided with pre-reading activities as a prelude to formal ruing.
11. Be provided with an awareness of writing and its value.
12. Be provided with an understanding of mathematical and scientific ideas such as shape
and size of objects, number concepts, the earth, living things, matter and energy.
13. Be provided with balanced meals .and snacks, prepared for proper muscular development
and growth.
14. Be provided the most modern facilities and equipment for the development of his
social growth and creative abilities.
15. Be provided with the hest qualified and experienced teachers in nursery school education.
KlndarCan
4 c..''Q
KINDER-CARE
KinderCarEe LEARNING CENTERS, INC. ,ra
ALABAMA (37) Newbury Park Largo Bloomingdale KENTUCKY (12)
Anniston Rancho Cucamonga Margate Bolingbrook Bowling Green
Bessemer Riverside North Lauderdale Buffalo Grove Independence
Birmingham Ocala Carol Stream
9 Sacramento Orange Park Chicago (Metro) Lexington
Center Point Salinas g Louisville
Daphne San Diego Orlando Country Club Hills
Decatur San Jose Palm Bay Crystal Lake LOUISIANA (17)
Dothan Santa Ana Panama City Decatur Alexandria
Forestdale Santa Clara Pensacola Edwardsville Baton Rouge
Gadsden Stanton Port Orange Godfrey Kenner
Gardendale Sunny mead Seminole Hanover Park Lafayette
Hoover Tustin Sunrise Libertyville Lake Charles
Huntsville West Covina Tallahassee McHenry Metairie
Irondale Tampa Matteson Monroe
73 Mobile COLORADO (17) GEORGIA Montgomery
( ) New Orleans
Montgomery Aurora Orland Park Shreveport
Opelika Boulder Acworth Park Forest
Pelham Colorado Springs Albany Rock Island Slidell
Denver Athens Roselle MAINE! 1
Phenix City ( )
Prattville Englewood Atlanta (Metro) Richton Park
Selma Lakewood Augusta Schaumburg Portland
Littleton Austell Springfield MARYLAND 8
Theodoret ( )
Chamblee
Tuscaloosa Longmont Streamwood Annapolis
Clarkston P'
Westminster Urbana Bel Air
ARIZONA (19) College Park Woodbridge
CONNECTICUT (17) Columbus Columbia
Mesa Bloomfield Conyers INDIANA (20) Frederick
Phoenix Decatur St. Charles
Tempe Branford Beech Grove
Tucson Bristol Doraville
Brookfield Douglasville Bloomington MASSACHUSETTS (31)
ARKANSAS (9) Danbury East Point Columbus Bedford
Fayetteville Enfield Ft. Oglethorpe Ft. Wayne Beverly
Fort Smith Farmington Forest Park Indianapolis Billerica
Hot Springs Hamden Gainesville (Oakwood) Lafayette Braintree
Little Rock Hartford Griffin Muncie Brockton
North Little Rock Manchester Jonesboro New Haven Chelmsford
Pine Bluff Middletown Lawrenceville West Lafayette Danvers
Springdale North Haven Lilburn Framingham
g Mableton IOWA (6) Holyoke
West Memphis Rocky Hill Macon
Vernon Cedar Rapids Lexington
CALIFORNIA (38) West Hartford Marietta Davenport Lynn
Anaheim West Haven Martinez Marion Marlboro
Buena Park Windsor Morrow Waterloo Melrose •
Norcrocoo ss Methuen
Cerritos DELAWARE (2) Peachtree City Milford
City of Industry KANSAS 18
Covina ( )
Dover Rome Newburyport
Diamond Bar Wilmington Roswell Derby Norwood
s FLORIDA (38) Savannah Emporia Pembroke
Encinitas
Valley Smyrna Kansas City Rockland
FouFremont Altamonte Springs Snellville Lansing Salem
Fullerton Cease berry Tucker Lawrence Shrewsbury
Glendora Clearwater Union City Lenexa Springfield
Gainesville Warner Robbins Manhatten Waltham
Huntington Beach Ft. Walton Beach Olathe Wayland
Irvine ILLINOIS (32)
LagunaHills
g Jacksonville Beach Aurora Salina Westboro
Livermore Lake Buena Vista Belleville Topeka Weymouth
Mission Viejo Lakeland Bensenville Wichita Woburn
Kinder--Care Learning Centers , Inc. feels that the
County' s requirement, pursuant to Section 3 . 3 (c) of the
County Development Revenue Bond Policy, of a written
report from Kinder-Care ' s principal banker concerning
Kinder-Care' s financial position and ability to meet
the expense of the proposed bond issue is not necessary
because this ability is shown in its 1983 Annual Report,
its Form 10--Q for the quarter ended June 8, 1984 , the
reports from Moody' s Investors Service and Standard &
Poor' s , and the letter from The Frazier Lanier Company
Incorporated indicating the marketability of the bonds .
RESUME OF MR. PERRY MENDLE, PRESIDENT
KINDER CARE LEARNING CENTERS, INC.
Perry Mendle was . born in Atlanta, reared and educated in
Columbus, and today lives in Montgomery. He is a former real es-
tate developer and automotive chemical manufacturer and also a
grandfather. But most of all, Mendle is known today as the man
who invented the concept of Kinder Care Learning Centers , Inc. ,
where thousands of children have received tender, loving care,
plus education. The children are those of working mothers and
fathers who want a place for their children to be well cared for
during the parents' working hours.
All of this and more is provided by Kinder Care, in buildings
with a red -topped roof, something of a symbol of the old time
schoolhouse and today as well known as McDonald 's Golden Arches
and the red and white Colonel Sanders fried chicken places.
Mendel, according to Richard Grassgreen, executive vice president
of Kinder Care, does not object to having his operation compared
with these and other successful merchandising chains because he
carefully studied such firms before embarking on his own venture.
The first Kinder Care school opened on July 14 , 1969 in
Montgomery, Alabama and today there are 810 similar facilities in
40 states, and more expansion is now being planned. Kinder Care
is presently building new headquarters offices in Montgomery in
Executive Park. The 5-story, 50 ,000 sq. ft. building should be
completed during 1984 . Kinder Care is the nation's largest pro-
fessional child care operation, with children as young as 6 weeks
through age 12 enjoying the services, and at the same time pro-
viding ease of mind for the parents who know the child is having a
good time, :learning and under the care of trained and professional
people who, like Mendel, really like and love children.
Grassgreen :said Mendel saw a need for good care with the expanding
work force of more and more women. He hired Arthur E. Boudreau,
the man who helped set up the Air Force Academy in Colorado, and
later served as a school superintendent in Boston, to design the
educational section that is the heart of Kinder Care.
The educational package included in Kinder Care is highly
important and each child is tested (those between 2-1/2 and 6
years) twice a year using the Metropolitan Readiness Test. The
Reading Readiness Program is done weekly through the use of tape
recordings, printed transparencies and worksheets and is available
to children between ages 2-1/2 to 6 . Lesson plans are prepared
for the children. If a child is found to have a learning disa-
bility, Kinder Care will refer the child to the proper agency for
him to. receive special help.
Page Two
The guiding light behind all of this is the 61-year-old
Mendel, who began the first Kinder Care in Montgomery with his own
money plus a small amount from assorted investors. The company
has gone through a number of changes in American life styles since
1969 , such as the women's movement, more divorces, inflation and
the increasing number of working women. Mendel employs a number
of former teachers, as well as specially trained housewives who
have a talent for caring for small children. Kinder Care has no
television and junk food, something that has become modern day kid
culture, and Mendel believes that the children thrive and do bet-
ter without either.
From the headquarters building in Montgomery, the staff is in
charge of all purchasing for the 810 centers. Center directors
send in seven forms each week, reporting on all affairs, and a
supervisor visits each center every week. Mendel makes unannounc-
ed visits also.
Mendel is not worried about competition from any 'other com-
pany that may wish to enter the world of child care. For one
thing,, he believes Kinder Care has the best to offer and for
another, today, the country has more than 5 million pre-school
children of working mothers. Mendel believes that these children
can be better equipped to meet today's complex life with the care
and education Kinder Care provides.
PROJECT PROPOSAL
I . SUMMARY
1. The Project: Industrial Revenue Bond financing
for a child care center
2 . Offering Amount: $600 ,000
3. Rate : Market rate at time of offering
4 . Term: Twenty years
5 . Borrower: Kinder-Care Learning Centers , Inc.
II . THE DEVELOPMENT PROJECT
Kinder-Care proposes to build a freestanding facility
in the incorporated area of the City of Greeley.
The building will be 6 ,455 square feet, frame and brick
construction with a central core containing all mechani-
cal equipment. The Lessee ' s standard plans and speci-
fications will be utilized, with certain modifications
for Colorado, e .g. , climate, soil , and other specific
factors. The building will be located on an approximately
three-quarter acre site , zoned for the proposed use .
Generally the site will be adjacent to, but not fronting
on, main arterial roadways .
III . FINANCING PROPOSAL
Kinder-Care proposes to borrow $600 , 000 for the finan-
cing of the Project.
IV. USE OF PROCEEDS (Estimated)
A. Tae assumptions used are :
1 . The Bond Issue
(a) The offering $600 ,000
(b) The interest rate shall be 70% of
the prime rate of RepublicBank Dallas
and a conversion to a fixed rate with
the request of Kinder-Care and the
consent of RepublicBank Dallas
(c) Maturity 20 years
(d) Principal subject to mandatory payment,
at the option of the Bank, in the amount
of 10% each year of the principal amount
in years 6 and 7 , 20% each year of the
principal amount in years 8 and 9 , and 40%
of the principal amount in year 10
2 . The Project
(a) Cost to Construct:
Land $137 ,000
Building 380 ,000
Equipment 35 ,000
Building Contin-
gency and Cost of
Issuance 48 , 000
TOTAL COST $600 ,000
As security for the bonds , the borrower
will pledge the property.
V. The borrower for the child care center is Kinder-Care
Learning Centers, Inc. , a publicly owned (over-the-
counter) company based in Montgomery, Alabama. Kinder-
Care is the largest factor in the child care industry,
with over 800 locations in 40 states and Canada. Each
Kinder-Care location is managed by the company; none of
the units is franchised.
Kinder-Care is recognized as a well-managed company,
and they have a strong record of growth and financial
stability. Unlike some other multi-location service
businesses , Kinder-Care has never closed a location.
PAYMENT SCHEDULE
The payment schedule for the bonds will vary depending
upon the prime rate , as from time to time in effect, the
maximum interest rate which is negotiated with RepublicBank
Dallas , and whether the Bank elects to exercise all or any
of its mandatory payment options . Since the project will
be owned by Kinder-Care, it will be subject to property
taxation and payment in lieu of taxes will not be required.
The Financing Agreement will require Kinder-Care to maintain
the project in good repair and to properly insure it.
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