Whitehorse Daily Star

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Photo by Vince Fedoroff

HIGH-FIVE TIME - Andrew Robulack has some fun with his charges Aleza, Elijah and Justine (left to right) outside the Little Paws Daycare this morning. A lack of rent money is forcing the daycare to close.

'Irresponsibility' sees daycare's abrupt demise

What's being called"extreme irresponsibility" on the part of both the Yukon government and the previous board of the Little Paws Daycare will see the closure of the child care centre.

By Stephanie Waddell on December 11, 2008

What's being called"extreme irresponsibility" on the part of both the Yukon government and the previous board of the Little Paws Daycare will see the closure of the child care centre.

The situation leaves parents of the 50 children who attend Little Paws looking for new child care options and another 15 staffers without a job.

"This is the livelihood of 15 people going down the tubes," Andrew Robulack, the daycare's acting director, said in an interview this morning.

Robulack used the words "extreme irresponsibility" to describe:

  • the daycare's decision to enter a lease costing $12,000 a month; and

  • the Yukon government's decision to provide the building's landlord with $50,000 security deposit to secure the building that houses the daycare on Range Road.

After months of scrounging and using its government subsidy to pay the rent on the building, the daycare hasn't been able to pay its rent for the past two months, Robulack explained.

On Monday, the lawyer for the landlord (Borud Enterprises) issued an eviction notice, telling daycare officials to be out next Monday, Robulack said.

"It's a beautiful building, but very expensive," he said.

The daycare moved into the new building near the same site as its former building, the Takhini area's former community centre that was condemned and torn down last spring.

The former board of the non-profit daycare had a "long history" of looking for alternative locations and was at other sites temporarily while the current building was constructed.

It eventually settled on the structure and agreed to spend the $12,000 a month in rent, along with any taxes and other additional expenses which brought the monthly cost up to about $15,000. Monthly rent on the previous building was $4,000.

"It must have been the only place (available)," Robulack said of the current site.

Even the landlord recognized the lease was a risk, seeking a deposit on the building in case there was a breach of the agreement, Robulack noted.

The board at the time secured a $50,000 note from the government, Robulack said. He personally believes the government was irresponsible in not doing any analysis on the funds it was handing over to the building's landlord.

The Yukon government security deposit remains in trust but will be paid out to Borud Enterprises upon the eviction of the daycare. Robulack said $24,000 will be used to pay arrears in rent, with the remaining going to the landlord as a penalty for breach of the lease.

It was only a month after signing the lease, that saw a 300-per-cent jump in monthly rent, that the then-members of the board resigned, he said.

There was also no director for the daycare in place. While the new board that was formed eventually found a new director who arrived from Calgary, it wasn't long before she left after learning of the financial situation.

Robulack said he then agreed to take on the role of acting director until someone new could be hired.

With a son who had gone to Little Paws since he was an infant, and valuing not-for-profit daycare in his own neighbourhood, Robulack said, he felt he had a moral obligation to try to make things work.

"It was a challenge," he said, noting the new board was unsuccessful in its attempt to try to re-negotiate the lease.

As an entrepreneur himself, Robulack attempted to make the cash flow work. While he believes progress was made in improving the quality of service at the daycare, the costs were just too high.

Fees were raised by $50 a month for each group of children, though that amount didn't represent the true increase to the costs the daycare was paying.

Robulack noted the board was trying to find a balance between paying the extra amount while also not forcing parents to leave the daycare due to costs.

A second storey was added to the building which the daycare had planned to use as a way of making money to operate the centre.

However, the centre soon learned the landlord hadn't obtained a development permit to build the third floor so it couldn't be occupied.

"We're in a dispute on that," Robulack said.

Unable to generate revenue, the daycare spent most of its wage and other government subsidies on rent, with parents' fees going to the centre's operations.

"It's been, kind of, fly by the seat of your pants," he said of operating the service.

With just days for parents to find new places for child care and staff looking for work during the Christmas season, Robulack said, he's heard reactions of dismay, anger and despair from both parents and staff caught off-guard by the situation.

Others have provided some support, stating they're surprised the daycare kept going as long as it did, given the cost of rent.

Meanwhile, other daycares in the city are providing what help they can.

"Other centres are stepping up," Robulack said, noting some have offered discounts and spaces to parents of children now attending Little Paws.

He's hopeful the additional children going to other day cares may translate to more jobs at those places for Little Paws workers.

Meanwhile, Robulack is also trying to negotiate with Borud to allow the daycare to stay open until Dec. 31 to give parents more time to find new care for their children.

If that doesn't happen, the daycare will close Friday, with officials selling off what it can at the centre on Monday.

Health and Social Services Minister Glenn Hart had yet to be briefed on the matter this morning and declined to discuss the situation. Brad Cathers was the minister at the time of the financial arrangements for Little Paws.

Borud could not be reached for comment.

Comments (2)

Up 0 Down 0

dawn Issac on Dec 11, 2008 at 1:55 pm

good lord YTG, get with the program. "brad cathers" has yet to be briefed" Brad get on the ball and take charge of your department, which lately, has been lacking. First a closure of a riverdale daycare, and now another one. I guess in the eyes of YTG, our kids are jokes.

Up 0 Down 0

Cory Bellmore on Dec 11, 2008 at 11:39 am

This is increadibally unfortunate for the staff, parents and children at this facility. I wonder if the Little Paw's Daycare will be reimbursing the payments for those children not on government subsidy for the month of December, as the parents will now be forced to find last minute child care?

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