Q: Could the ramp-up expenses be related to enrollment?

A: DHIC anticipates offering 6 – 9 months of discounted rental payments to allow adequate time to reach full enrollment.

Q: Will the operator be under contract and if so, for how long?

A: The operator will have an agreement with DHIC to provide services for the child care center. The contract will initially be for five years with an option for a 10-year renewal.

Q: What percentage of the center needs to be filled with Washington Terrace Residents?

A: There is no specific requirement for a percentage of slots at the child care center to be filled by Washington Terrace residents. However, since the child care center is supposed to be a resource for residents of the Washington Terrace community, DHIC would like to understand how the potential operator will make a good faith effort to enroll residents.

Q: What do you anticipate the rent being for the child care center?

A: DHIC anticipates the rent for the child care center will be comparable to other child care centers in Raleigh, with the acknowledgment that at least 51% of the enrollees at the child care center will require some form of financial subsidy. We will negotiate the rent structure with the selected operator using the operator-provided budget projections as a basis for discussion.

Q: Will you have a better sense of the rent by the time the application is due?

A: No.

Q: Who sets the base tuition rates for the child care center?

A: The operator.

Q: Is the child care center just pre-K?

A: DHIC envisions that the child care center will serve infants through pre-K, though if the operator has a compelling argument to serve a different mix of children, we would consider it.

Q: Is there a possibility to negotiate a triple net lease?

A: Yes, there is a possibility to negotiate a triple net lease.

Q: Could you define the financing of the build out?

A: Financing the building out means having access to the necessary financial resources to supply the furniture, fixtures, and equipment needed to open the child care center.

Q: What expenses are the operator responsible for verses what DHIC covers?

A: The child care center is part of the larger Washington Terrace development. As such, DHIC will be responsible for maintaining the common areas such as the parking lot, sidewalks, and grass areas surrounding the child care center.  DHIC will also be responsible for the exterior building maintenance, building insurance, and the real estate taxes.  The operator will be responsible for: personal property taxes, utilities, the insurance requirements as detailed in Appendix B of the RFQ, and all of the furniture, fixtures, and equipment necessary to open and run the center.  A security deposit from the operator will also be required.

Q: Will DHIC set the schedule for the child care center or will the operator?

A: The operator will set the schedule for the child care center.

Q: Can you make the expenses, fees, and population information for the Charlotte child care center available?

A: DHIC has reached out the developer of the Charlotte child care center for more information regarding these costs. We will post them on our website once they are received.

Q: What are the restrictions that are in place as a result of the financing?

A: The first phase of the Washington Terrace project, including the child care center, will be financed using Low Income Housing Tax Credits, which is regulated by Section 42 of the Internal Revenue Service (IRS) code. All of the residents in the first phase of redevelopment will have incomes equal to or less than 60% of area median income (AMI).  The majority of the slots at the child care center must be affordable to families earning 60% of AMI or less as well.  Please see Appendix D for additional information on Wake County area median income by family size.

Q: What are the limits of the tenant’s obligation with regard to repairs for the facility and the surrounding grounds (e.g. street lights)?

A: The operator will be responsible for all building systems maintenance after the general contractor’s one-year warranty expires. DHIC will be responsible for maintaining the exterior of the building and the surrounding grounds.

Q: How will we manage the fact that market rate for the child care center will change between now and the summer of 2018?

A: The rent on the child care center will be set to 2016 rent levels.

Q: How will the rent change after the first five years?

A: DHIC expects the rent level for the 10-year contract renewal period to remain consistent with the rent levels during the initial five-year contract.

Q: Do we need to submit a business plan with five years of projections?

A: You do not need to submit a business plan with five years of projections to submit an application. However, DHIC has determined that to evaluate the applications, we would like to see your estimated start-up budget and cash flow projections for the first year of operations. Please use the template supplied to provide that information.