Region of Waterloo plans to use modular childcare centres to address childcare crisis

A new report is recommending the purchase of two modular childcare centres to meet rising demand in the Region of Waterloo. CTV’s Spencer Turcotte has more.

As the demand for childcare continues to grow, Region of Waterloo staff are recommending a new way to meet that need.

At a Community and Health Services meeting on Tuesday, staff suggested the region purchase a pair of modular childcare centres, because they believe it is the most innovative response to the issue.

Modular childcare centres are similar to a portable. Some are the size of shipping containers, others are larger, but they are made in a factory and can be assembled on-site in a short amount of time. They have access to running water, hydro and washroom facilities.

As childcare operators across the region struggle to find affordable new sites in priority neighbourhoods, a staff report shows over 13,400 children are waiting for licensed child care in the region, 8,700 of which are looking for care immediately.

“We’re opening a new centre in September and when we opened our waiting list six months ago, within the first day we have over 1,000 children on the waiting list,” said Lori Prospero, CEO of RisingOaks Early Learning Ontario.

Prospero supports the region looking at modular childcare centres because other parts of the country have found success with them.

“It helps with the capital costs of building new childcare spaces,” said Prospero. “The other thing it helps with is making sure that it’s low-cost rent and it can be assembled and built fairly quickly. I think the region is proposing that this modular childcare centre would be open by the end of 2026. Other projects I’m looking at right now as new builds, they’re not going to be available until 2028.”

Regional staff told council the modular buildings could help address the region’s target of creating 4,136 new childcare spaces by 2026. To do so, staff recommended the region borrow $4.4 million to purchase two 88-space modular child care centres.

Regional councillor Natasha Salonen asked for clarification on the financial front.

“Why is this coming outside of budget? This is a pretty big budget ask,” Salonen said.

The director of Region of Waterloo Children’s Services, Barbara Cardow clarified.

“While there is an upfront debenture cost, all costs will be recovered through the lease to the child care operator,” said Cardow.

The reason the region needs to borrow the money is because funding isn’t available for such a model under the current framework for the Canada-Wide Early Learning and Child Care agreement.

Following the clarification, councillors went forward with the staff recommendation, and it was carried. However, it will still need to be ratified at a council meeting later this month.

For now, all signs point to modular childcare being used as a method to address the child care crisis locally.

The region will look to lease the two units to a not-for-profit operator at a long-term affordable lease rate.

Each site will include utility hook-ups and playground installation.

The thought has Prospero feeling hopeful of making a dent in the extensive child care waitlist.

“We have submitted an expression of interest to be considered,” said Prospero. “We would be excited to work on this project.”