B2C2 Expansion Toolkit

Getting Started on preparations and logistics

Now that you have Board approval for expanding and agreed on the kind of centre you want to operate (project concept), it’s time to move to the next step of finding a location, hiring an architect and developing the design.

Let’s get started!

Module 3  is broken into 3 parts:

Part 1 – finding and securing the right location  

Part 2 – how to find and choose the best Architect for your project.

Part 3 – information and tools on how to design a high-quality setting for staff, children and families.

• B2C2 Space Calculator will tell you how much space you need for a centre, based on the number and ages of children you want to accommodate.
• It provides the minimum space required based on CCEYA requirements and B2C2’s recommendation based on best practices.
• When considering what space you need, think of future growth and flexibility. 

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Where to start looking?

Now that you know what your space needs are, you can map out appropriate areas for a location search, identifying the following:

• Service System Manager (SSM) priority areas are areas where a need for child care has been determined and where your SSM will support it.
• Your organization’s catchment area (if applicable).
• Existing child care facilities – consider any identified gaps and who will be your competitors.
• Supporting organizations – libraries, elementary schools, and community centres.
• Identify residential areas.
• Identify the makeup of the population. 

Who can help?

• Government officials – municipal councillors, provincial Members of Provincial Parliament (MPPs), and federal Members of Parliament (MPs).
• Community partners and organizations:
  • Family support services
  • Local businesses and organizations
  • Schools, community centres, faith-based facilities
  • Housing developers
  • Community Chambers of Commerce
• Real Estate Agent
  • Know the local real estate market, an extensive network, and knowledge of available properties.
  • Outline your needs and preferences to help streamline the search.
  • Allows realtors to match available properties to your desired criteria efficiently.

Determining the suitability of the location  

• Location and Zoning
• condition of the land
• overall building conditions
• available space for playground(s)

Acquiring the Location

There are two options, both with advantages and disadvantages.

Leasing Advantages

• If the property does not need major renovation, you will not need as much money upfront.
• The landlord may be willing to build the expense of renovation into your monthly rental payment to help you stretch costs over time.
• It may be easier to locate a suitable property to lease than to purchase.
• Payments will be consistent, which makes it easy to plan.

Leasing Disadvantages

• You may be forced to relocate when your lease term expires.
• Expect periodic rent increases based on market conditions and the cost of operating the building.
• You may be unwilling or unable to make extensive improvements to the site to make the space more appropriate for child care. 
• Landlords may not allow certain changes, or if you have a short-term lease, it may not be worth investing in the site
  

Buying Advantages

• Provides a stable home for your program without the danger of losing it.
• More control over annual expenses by protecting you against rent increases.  
• Overtime, it  will be an asset for the organization, and you should get a return on your investment.
  

Buying Disadvantages

• High upfront cost—You must be able to pay the full cost of the property with savings, grants and loans.
• Assume the responsibility and cost of building maintenance and repair.
• More liability for accidents and injuries that occur on your property. Even when you lease space, you will need to acquire liability insurance.
• May have to deal with fluctuating interest rates, which may make your budgeting process vulnerable.
• Finding financing is difficult because banks consider non-profits to be a greater risk. This is changing with the way child care is now funded through CWELCC.

Tips for Negotiating a Lease  

Strive for long-term stability, safety and flexibility.

• Leverage the fact that child care offers landlords reliability.
• Child care is an anchor for the surrounding community.
•  Child care lease agreements should have longer terms for stability.  Negotiate at least a 10-year lease and, even better, 20 years with renewable terms. 
•  Share child care regulatory requirements with the landlord. This will support conversations around needed changes or adjustments to the space.
• Advocate for a Cost-of-Living Adjustment (COLA),  as this allows for predictable rent increases that reflect inflation. This stability can help ensure the lease’s longevity and support conversations with funders when increases are inevitable. 
• Clarity on maintenance and repair responsibilities is essential. Are there any restrictions on who can provide contract services such as electricians, carpenters, plumbers and renovation services? When repairs and maintenance have to be done, will you need an agreement to do these during or after child care hours? 
• The lease should include conditions for adequate parking for staff,  and visitors and zones for drop-off and pick-up times. 
•  Understand the landlord’s insurance requirements. 
• Other services: Your lease may include optional services such as cleaning, catering, laundry, garbage, snow removal/landscaping, security and monitoring services (security, fire alarm, fire extinguishers, etc.). Compare the costs to ascertain if this will save you money. 
•  Consider procuring legal services to review your lease and the conditions.