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ELF Financing Strategy
<br /> San Mateo County ELF Study‐2016
<br />February 21, 2017
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<br />Prepared by Brion Economics Team Final Report 9
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<br />LAND COSTS
<br />It is important to note that these costs do not include the cost of land, which could be significant.
<br />Appendix A includes information on recent land values for commercial and residential land in the
<br />County. For this analysis, we assume that land would be provided at low cost or no cost, or that
<br />providers would rent space in existing buildings. In general, new child care is provided on school sites
<br />or faith‐based organization sites, with affordable housing projects, or on other public land. If child care
<br />is required as part of new large developments of a certain size, this would remove the land cost barrier
<br />that many providers face.
<br />Land costs in San Mateo County are some of the highest in the Bay Area and the State. While this
<br />study did not include gathering market data on land cost, we have summarized some land transaction
<br />data in the County from 2015.3 Appendix Tables A‐9 and A‐10 summarize the transaction data from
<br />2015 for commercial land and multi‐family residential land.
<br />
<br />3 See San Mateo County Linkage Fee Nexus Study prepared by Vernazza Wolfe Associates, Inc., and from Strategic
<br />Economics for the grand nexus study for affordable housing that was recently approved by the County.
<br />Table 3
<br />Summary of New Demand for Child Care Center Based Spaces and Costs
<br />San Mateo Countywide ELF Study ‐ 2016
<br />Item
<br />Under 2 Years
<br />Old 2 to 4 Year Olds Total, 0 to 4 Years
<br />Unmet Need for Center Based Spaces as of 2015 1,193 6,609 7,802
<br />New Demand for Center Based Spaces ‐ 2015 to 2025 261 2,153 2,414
<br />Study Target as % of Total 100%1,454 8,762 10,216
<br />Average Facility Cost per Space (1)$40,718 $40,717 $40,717
<br />SUMMARY OF COST ESTIMATES
<br />Total Cost of Child Care Spaces $59,194,000 $356,776,000 $415,970,000
<br />Program Administrative Costs 3% $1,776,000 $10,703,000 $12,479,000
<br />With Administrative Costs $60,970,000 $367,479,000 $428,449,000
<br />Average No. of Spaces per Year (2) 145 876 1,022
<br />Average Cost per Year (2)$6,097,000 $36,747,900 $42,844,900
<br />(2) Assumes 10 year development plan.
<br />Sources: Brion Economics, Inc.
<br />(1) See Table 1 and 2; based on recent average child care costs, adjusted for inflation.
<br />Child Care Demand ‐ 2015 to 2025
<br />figures rounded to nearest $1000
<br />8.C. - Page 28
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