ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083
FOR A LOAN AGREEMENT
BY AND BETWEEN
CITY OF NAPA
AND
MISS MAMA, LLC INC dba LE PETIT ELEPHANT FOR THE CONSTRUCTION OF SIDEWALKS AND TRAFFIC CALMING MEASURES Pursuant to Government Code Section 53083, the City Council of the City of Napa must hold a noticed public hearing and, prior to the public hearing, provide all of the following information in written form and available to the public and through the City’s website, regarding a proposed economic development subsidy to be provided by the City pursuant to a Loan Agreement by and between the City of Napa and Miss Mama, LLC dba Le Petit Elephant (“Loan Agreement”). The agenda was posted at least 72 hours in advance at HYPERLINK "http://www.cityofnapa.org"www.cityofnapa.org in accordance with the Ralph M. Brown Act.
The purpose of this report is to provide the information required pursuant to Government Code Section 53083 in regards to the Loan Agreement. This report shall remain available to the public and posted on the City’s website until the end date of the economic development subsidy, as further described in number 2 below.
1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.
The Loan Agreement is with Miss Mama, a California LLC dba Le Petit Elephant. The managing members are Milli Pal Pintasci and Robert Pintasci. The loan is for the property at 15 Chapel Hill Drive, Napa CA; APN: 006-162-001-000
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
If the Loan is approved by the City Council, in consideration for Miss Mama’s LLC performance of its covenants and other obligations pursuant to the Loan Agreement, the City of Napa shall issue a loan to an escrow account with payments to be released upon demonstration of performance of the completion of required sidewalks. No payments will be directly released or made to Miss Mama, LLC. The Loan is a zero interest loan with payment due to the City of Napa no later than five years after the loan closure. Actual dates will be filled in upon close of the loan which is anticipated to occur in April 2026.
3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.
The economic development subsidy shall be Two Hundred and Fifty Thousand Dollars ($250,000.) in the form of a zero-interest loan with a balloon payment due five years from the loan issuance date.
Miss Mama, LLC is not expected to generate sales tax revenue for the City of Napa as daycare services are not taxable.
Since this loan will be repaid, the loss of revenue is expected to be zero. However, there is opportunity loss for not being able to use these funds for other purposes, or interest that may have been earned had these dollars been saved for three years. This loss would be less than $25,000.
4. A statement of the public purposes for the economic development subsidy.
The City has determined that the retention and expansion of childcare as described in the preceding paragraph will serve a substantial need for the City of Napa and its workforce, for the retention and creation of new jobs, and result in community and public benefits that may not otherwise be available. The City also acknowledges that the new location is in a residential neighborhood and has conditioned the approval of sidewalks on the Montecito side of the property to connect to existing sidewalks is important for traffic calming and neighborhood safety. This may include the addition of crosswalks or flashing beacons.
Further, the retention and expansion of childcare slots serve the additional public purpose of fostering a business and civic environment that may attract additional business and investment in the community due to the availability of the increased public and private services and economic activity resulting therefrom, thereby assisting the City in its goal of furthering the development of the community, while providing enhanced safety.
Miss Mama, LLC dba Le Petit Elephant is a nursery and preschool that is anticipated to retain approximately 119 current childcare slots and add 79 or more additional nursery and childcare slots to serve the local workforce. The site is expected to create approximately 30 full-time jobs and retain 17 current jobs.
5. The projected tax revenue to the local agency as a result of the economic development subsidy.
Childcare services are not taxed and therefore will not generate direct sales tax revenue to the City of Napa.
Using the IMPLAN model for economic impacts, this expanded childcare facility is expected to result in a net gain of $189,530 annual to the region’s economic base. Additionally, construction is estimated to create or maintain 18.5 jobs and generate $1,862,200 in labor income which results in an additional $877,680 in economic output for indirect and induced spending related to construction.
Since the property was previously a church, property taxes generated by the sale and transition of use are expected to increase by approximately $40,000 annually.
Although the business already maintains a license for operation, the increase in the number of children served may increase the annual fee, though the direct impact is unknown.
6. The estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
The retention and expansion of Miss Mama, LLC dba Le Petit Elephant within the City is anticipated to result in the retention of 17 jobs currently at the facility and approximately 48.5 new jobs over the term of the loan agreement as the facility grows, as follows:
30 full-time jobs
18.5 temporary positions (THIS CAN INCLUDE TEMPORARY CONSTRUCTION JOBS) ATTACHMENT 2
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