Community Daycare's Survival Threatened as Virginia Mason Encroaches on Space; First Hill Child Learning Center Scrambles for Space and Aid.

SEATTLE--(BUSINESS WIRE)--Nov. 10, 1999--

First Hill Child Learning Center (First Hill), a community childcare center since 1993, announced today that its landlord's refusal to renew its lease and late notice of the decision is putting the center in crisis mode and causing a frantic search for alternative space.

The landlord, First Baptist Church of Seattle in First Hill neighborhood, notified the center on October 18, 1999, that they would not extend the center's lease and that Virginia Mason (VM) Children's Services would take over the space on January 1, 2000.

"Downtown Seattle is at risk of losing one of the few remaining independent centers that are open to the public, not just one company's employees," said Jeffrey Howlett, board member of First Hill. A non-profit organization, First Hill serves 55 children and their families, including many lower-income families in the neighborhood.

"First Baptist never gave the board any hint they were considering other tenants and never gave the board the option to make a counter-offer," Howlett said. "Now with the clock ticking, we are asking the community for help."

First Hill is calling on the community for new space or financial aid, which will help the center move to a new home or create severance packages for staff whose First Hill jobs would end in the middle of the holiday season.

According to Howlett, the church's surprise announcement had a huge impact on First Hill's operations. For the past three weeks, board members and parents have searched for new space without success, contacting more than 25 churches in First Hill neighborhood as well as schools, municipal services and real estate brokers in the area.

Parents are scrambling for new childcare while staff are panicked and concerned for their jobs. "I'm just now gaining back financial stability," said Joanna Diggs, teacher at First Hill. "I don't know what to do. The rent still has to be paid and the bills kept up."

First Hill claims that VM approached the church and secretly negotiated the lease, and that its silent encroachment on the center's space was unethical. Virginia Mason had been searching for a new location since January 1999.

"We would never have expected this sort of predatory behavior from another childcare center in the community, " said Howlett. "VM has made their space problem our problem."

Virginia Mason will reportedly use the space to offer childcare to its employees. Following early protests by First Hill, VM offered to absorb First Hill's staff and families under their umbrella. "Their offer doesn't get to the root of the problem -- the long-term survival of a vital community resource," said Howlett.

First Hill Child Learning Center provides care to children from infant to pre-school age. The center is one of the few downtown centers to offer part-time childcare as well as subsidized care to low income and ethnic-minority families in the neighborhood. A model for infant care in the childcare community, First Hill maintains teacher-child ratios much lower than state requirements and offers its 17 employees living wages and full health benefits.

Quality childcare in King County is a premium and scarce resource, according to Child Care Resources of Seattle King County. Today, 50,000 kids are enrolled in childcare in King County, and an additional 33,000 are waiting. Waiting lists may take nine months to a year before a space is secured, with even greater demand for part-time care.

Dr. Pamela Van Dalfsen, board president and First Hill parent said the timing is especially devastating, given parents' and staff's heroic steps to improve First Hill's finances and facilities in the last year. Parents raised more than $20,000 in fundraising last year, and led the center through its state license renewal.

Members of the public are encouraged to contact First Hill Child Learning Center by calling 206/325-7617 with offers of financial aid or leads for permanent space.

Editors: Jeff Howlett and Joanna Diggs are available for comment. For interview assistance or profiles on the center, call Rhenda Meiser at 206/443-9357 or on mobile [phone].