Agenda Packets - 2013/07/22 - Laserfiche WebLink

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Creative Kids Academy Rajiv Garg 5394 Edgewood Drive Mounds View, MN 55112 To: Mr. Jim Ericson City of Mounds View city Administrator June 11, 2013 Mr. Ericson, I wanted to thank you for meeting with me to discuss our lease renewal for Creative Kids Academy in the Mounds View community hall. We have enjoyed our strong relationship with the city of Mounds View as business owners for Creative Kids Academy and Woodlawn Terrace Apartments. Also, out of our 7 locations, the Mounds View center is the only location we do not own. The only reason why we invested in Woodlawn Terrace Apartments is because we wanted to build a stronger community in Mounds View and thought that keeping a quality childcare center in the walking distance from the Apartments would be healthy for the community of Mounds View. Creative Kids rent, with the CPI increases on an annual basis, has increased by almost 10% over the past 4 years. Our minimal tuition increases have not kept up with the overall expenses. Simply put, we can not afford to have any new rent increases as we operate on a razor thin margin of 2-3%. In the upcoming year, we will drastically be impacted by the 2014 healthcare reform which will put us in a huge negative margin. However, given the economic challenges of our business, we stay committed to the City of Mounds View and to the 100+ families we serve. We would like to renew our lease under the current terms. Our desire is to stay in the community center as the space is dedicated to serving families and children. We have made significant investment in the space with hand painted murals to make the center inviting for families. I wanted to highlight key points of what we have accomplished for the overall community of Mounds View. • We have invested thousands of dollars to become nationally accredited program (NAECY) and will be a Minnesota Parent Aware 4 star provider of early education. This is a very distinguished achievement, which directly benefits the overall community as well. • Quality early education leads to better family environment and responsible children. • More families move into a community where quality early education is available such as Creative Kids Academy. I am not sure if there is any other center with NAECY accreditation and MN Parent Aware achievement.