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ELF Financing Strategy San Mateo County ELF Study‐2016 February 21, 2017 Prepared by Brion Economics Team Final Report 5 new construction, including 477 infant spaces and 2,644 preschool spaces, totaling 3,121 spaces. The total cost associated with building new child care for 3,121 spaces is $134.8 million. Developing child care spaces in new or existing commercial space is the most expensive option. Due to building code upgrades, and other special safety requirements, it costs approximately $53,800 per child care space on average. It is assumed that 20% of infant and preschool demand would be met this way, including 239 infant spaces and 1,322 preschool spaces, totaling 1,560 spaces overall. The total cost associated with this is $84.0 million. Existing child care centers that may want to expand are assumed to meet another 15% of demand for both infant and preschool age children. Given that the average cost per child care space is $37,000, it would cost $43.3 million for existing centers to expand and meet the needs of 179 infants and 991 preschool children (1,170 spaces total). The use of portable buildings is the least expensive option at approximately $25,400 per child care space. It is assumed that 20% of unmet demand would be met by using portable facilities, serving 239 infants and 1,322 preschool children, totaling 1,560 spaces. Portable buildings would likely be placed at school sites but could be used at church or other private sites and would cost about $39.7 million in total. Employer‐based centers are estimated to meet 5% of demand, providing 60 infant spaces and 330 preschool spaces, totaling 390 spaces overall. The average cost per space is approximately $41,000, for a total cost of $16.0 million to provide employer‐based center spaces. Employer‐based care can be more expensive depending on the level of tenant improvements (Tis) required and fixture and furnishing design choices. In total, it would cost approximately $317.7 million to meet the unmet demand of 7,802 spaces for children birth to four years old in San Mateo County in 2015, an average of $40,717 per child care space, based on the assumptions on type of development discussed above. Table 2 presents the same distribution of required new ELF spaces as for existing shortfalls, and using the same costs per space by type, the total cost equals, $98.3 million. The total spaces required over the next ten years equals 2,414. Figure 2 shows total costs by type of building at 2015 and the incremental new costs for demand from 2015 to 2025, or expected growth over the next 10 years. 8.C. - Page 24