Spotlight: Manitoba’s Ready-to-Move initiative

The capital costs are funded through the Canada-Manitoba Canada-Wide Early Learning and Child Care Agreement. Municipalities apply for funding and must provide approximately two acres of serviced land. JQ Built is managing the process and construction of 22 of the 25 projects approved to date, facilitates the non-profit operator selection process as needed, and provides support through to project completion, when the building is turned over to the municipality². The municipality provides the space rent-free to a non-profit child care operator for a minimum of 15 years.

This new, innovative approach shows considerable promise as a way to expand child care quickly, and enable municipalities to develop needed community infrastructure without having to take on the extensive effort required to manage the building process that is often beyond the scope of their mandate. It also removes the burden from non-profit parent boards of assuming the responsibility and risk of developing new centres, overseeing construction, applying for grants and managing the finances.

The Ready to Move initiative – part of Manitoba’s child care capital expansion plan

The Ready to Move (RTM) initiative is part of Manitoba’s child care capital grants program, funded by the federal and Manitoba governments through the Canada-Manitoba Canada-Wide Early Learning and Child Care Agreement (CWELCC). As part of CWELCC Manitoba committed to create 23,000 new spaces in non-profit child care centres and family child care homes by March 31, 2026. 

Some of the expansion initiatives are enhancements of previous capital funding programs in Manitoba.

• New or expanded spaces in schools, on school property and in post-secondary institutions, are eligible for 100% capital funding.  
• Non-profit organizations are eligible to receive 60% of approved capital costs for new community-based child care centres for infants and preschool age children, now with no maximum ceiling. New school-age spaces are eligible for 60% of approved costs up to $1.2 million. 

In November 2022, Manitoba announced a $94 million investment in its innovative Ready to Move (RTM) child care project, followed by an additional $26 million in 2023-2024. Working in collaboration with First Nations, municipalities and JQ Built, a municipal participation corporation, Phase One of the project saw eight new centres completed. Seventeen more centres have been completed or are under development in Phase Two. All will be completed by Fall 2025. Twenty-two centres will be located in small or rural municipalities and three in First Nations communities. The RTM project is the first time Manitoba has provided capital funding to municipalities and Indigenous Governing Bodies for the construction of child care centres. 

The origins of JQ Built

In 2018, 12 municipalities from around the City of Winnipeg formed JohnQ Public, a cooperatively owned Municipal Participation Corporation, to find a collaborative way to deliver infrastructure and services in communities large and small. JohnQ is led by a board of directors appointed by the municipalities plus four members appointed by the board. All board members have a fiduciary responsibility to the corporation. In 2022, JohnQ Public created JQ Built as an infrastructure delivery arm to develop and test innovative ways to deliver community infrastructure through a voluntary collaborative process.

Municipal involvement in child care

In Manitoba, municipalities have no formal role in child care and historically have had little or no involvement in planning for, funding or delivering child care. There have been a few exceptions, such as the Rural Municipality of Headingley, which, in 2012, built a 90-space new child care centre on municipally-owned land, and rented it to the non profit operator at a rent equal to the foregone interest on its capital investment. 

The Province of Manitoba seizes the opportunity of federal investments in child care

The federal government’s Budget 2021 announced a significant infusion of federal dollars to provinces and territories to increase the availability and affordability of child care.  Manitoba recognized the need to expand its capital program through the establishment of public partnerships giving way to an opportunity to test John Q’s collaborative model and develop new child care spaces in a similar manner, noting child care is a key component of community infrastructure. 

A significant barrier to child care expansion in most provinces and territories has been the lack of any sort of municipal or regional infrastructure to support expansion. There are no comparable structures to school divisions or health authorities for child care, and therefore, the development of new spaces has been left to voluntary boards of directors and individual municipalities that may not have the capacity or willingness to take on the responsibility and risk of such initiatives. Many small communities in Manitoba have limited administrative and project management resources and may not be in a position to navigate procurement, tender documents, enter into agreements with contractors and manage the building and reporting process. As a result, available funds for various projects are often not accessed. The federal child care initiative gave rise to a partnership between the Province of Manitoba and JQ Built allowing local municipalities to develop child care services that they may not have undertaken on their own. The structure of JQ Built supports process and project management in participating municipalities, allowing them to reduce risk and keep projects on time and on budget. 

Hybrid-construction modular building project piloted 

In collaboration with the Manitoba Education and Early Childhood Learning and Social Innovation Office (Manitoba Department of Families), JQ Built developed a hybrid-construction modular building pilot project that allowed several child care centres to be built at the same time and then transported to municipalities. Municipalities and First Nations governments agreed to contribute approximately  two acres of serviced land, public works support, and 15 years of free rent, snow removal, grass cutting and general maintenance. The financial model demonstrated that over the 15 years municipalities would be contributing in this way approximately $4 – $6 million to the expansion of child care in their communities.

Centre design

Staff in Manitoba Education and Early Childhood Learning put together the specifications for the design of the centres, including a requirement for high energy efficiency and the ability for the sections of the facility to be put on the back of a box car or semi trailer and sent to rural and remote communities. 

Through a competitive tendering process, the architect and builder were selected by a committee of all the communities involved. Chagas Architecture + Development Inc. was selected as the architect and Pretium Projects as the builder. An initial design was developed by the architect, followed by a three-month design development phase, which included the architect, builder, Manitoba government staff, health and fire inspectors, working as a team.  

The RTM centres are constructed using a hybrid construction model, built in sections off site in a warehouse and then transported to their site for assembly on a permanent foundation. Two common designs are used – one for a 74-space centre and a larger model for 104 spaces. The projects can be completed in approximately five and a half months. Capital and related costs are approximately $57,000/space, or about $4 million for a 74-space centre.  The provincial government also funded costs associated with a security system, window coverings, commercial appliances including laundry, and all landscaping and fencing. 

Phased approach to expansion

In November 2022, Manitoba announced the creation of nine new centres in Phase One of the RTM initiative. Eight of the centres were completed between August 2023 and January 2024³. A call for expressions of interest for Phase Two closed in December 2022, with 14 additional sites approved in February 2023 and an additional two in July 2023, for a total of 25 in rural municipalities and First Nations communities. To date, 11 centres have completed construction and are open.

The approval process

To participate in the RTM initiative, a municipality passes several resolutions to enter into various agreements including:

• A Financial Assistance Agreement with the Province of Manitoba .
• Adhere to the Manitoba Government conflict of interest and policy guidelines for capital projects.
• To enter into a contract with the design builder.
• Enter into a general service agreement with JQ Built (or the municipality’s or First Nation’s preferred vendor) to support the full process and project management of the facility.

Province flows funds to the municipalities

All the funding for the build goes to the municipality. During the development and construction process, the municipality writes two cheques each month – one to the Design Builder and one to JQ Built. The total process management (legal, accounting, reporting, audit, project management and owners’ representative services including a certified Quantity Surveyor for the builds are seven percent of the construction costs which is less than the typical eight to 10 percent allocated for project management.

Speedy construction

Once the ground is prepared and the piles are in, it takes five days to erect, and completely close in the building. 

This results in little disruption to the surrounding community, and the site is free of construction debris as all the pieces are pre constructed in the lab in Winnipeg. The buildings can be erected at any time of year. 

Municipality owns the asset

Once the building is finished, it is turned over to the municipality, which owns the building and becomes the landlord of the RTM. The municipality selects the non-profit operator; however, if needed, JQ Built sends an RFP to other providers in the province and posts the opportunity on MERX. JQ Built provides evaluation templates to support municipalities in the evaluation of proposals from interested and eligible operators. The municipality makes the final selection and enters into a lease agreement with the selected operator. 

Role of the operator

The operator works with Manitoba Education and Early Childhood Learning and is responsible to apply for a start up grant to equip and furnish the centre, and for any shortfall not covered by the grant. The operator is also responsible to equip the playground and undertake any planting or other features to create shade or other protection from the elements. In some instances, the municipality has assisted with some of these costs. 

Once the building has received an occupancy permit, they can access the building. 

On site tours can be arranged so operators can order furnishings and materials. Once the operator has a tentative opening date, staff can be hired and equipment and furnishing purchased. Once staffed and furnished, licensing is the final step before opening. In some cases, the centres open in stages due to the shortage of qualified staff.

To date, non-profit operators have been found for all the sites, suggesting that they are able and willing to expand, especially when they do not have the responsibility to manage the construction process. The RTM expansion approach has allowed operators to focus on staffing and offering quality care and education for children.  

Benefits of the RTM initiative

The benefits of the RTM initiative include the following:

• The RTMs are providing much needed child care in small and rural communities, where there are few suitable existing buildings to renovate for child care.
• The RTM initiative allows for creation of new spaces in a very short time period, with little construction disruption to the surrounding community.
• The RTM initiative involves cooperation among federal, provincial, and municipal or First Nations governing body, and has increased awareness of and support for ELCC within local governments. For many, this is their first significant involvement with licensed child care, beyond zoning, local bylaws and building permits.
• There are efficiencies of scale, with a common design allowing for the ability to manufacture multiple units at the same time.
• Through the tendering process, construction costs of multiple centres are delivered for a fixed and consistent price. In addition, contracting for multiple centres allows the builder to secure the necessary trades for extended periods.
• Access to rent-free space (for at least 15 years) helps ensure viability for the non-profit operators, and a greater proportion of operating funds that can be directed to staff compensation.
• Local municipalities are supporting the provision of child care, by facilitating the build and renting the new facility to providers. By providing and servicing the land and maintaining the building, they have a vested interest in the centre’s quality and viability. This may lead to further involvement in the future. 
• The child care centre, a considerable public asset paid for by public funds, remains under public control and ownership.

A redistribution of responsibilities

The RTM process removes the burden of expansion from not-for-profit operators and it removes the risks associated with construction from local government and volunteer Boards of Directors.  However, the experience of the first two phases of the initiative suggests that operators also have been distanced from the design of the centres and this created some issues with respect to day-to-day program operations.  Some of the minor design issues were easily remedied, such as motion detected soap dispensers over the infant change tables, too small built-in garbage cans in the change areas and carpets under the highchairs where infants were fed. Other space and design issues could be rectified with input from the current operators of RTM sites, and a review of best practice and lessons learned from other jurisdictions’ experiences with modular construction for child care. 

For example, some of the issues include non-regulated design elements:

• Lack of ancillary support spaces, such as space to meet with parents, conduct assessments, for resource materials for staff or parents, or a quiet space for small groups of children, away from noisier or large group activities.
• Limited storage and counter space in the classrooms
• Small administrative office and staff room
• Lack of an infant napping area separate from active play areas
• No covered outdoor space or any form of shade.

Conclusion

The RTM initiative provides an innovative solution to the need for rapid expansion of child care spaces, and increasing availability in rural and smaller communities, where it is often challenging to find suitable space. Having a common design and project management process, allows for predictable timelines and costs.

Local municipalities are becoming engaged in the provision of child care, many for the first time. By providing and servicing the land and maintaining the building, they have a vested interest in the centre’s quality and viability. This may lead to further involvement in the future. 

Child care centres are often located in existing buildings, where there are limitations to the amount and design of the space. Opportunities for purpose-built child care centres that are more than serviceable spaces meeting minimum regulatory requirements have been limited in many parts of the country. While it is an exciting possibility to have new centres built in short order and operational within a few months, it would be worth examining a number of existing child care design guidelines as well as technical guidelines that support maximum functionality for both primary and ancillary/support spaces, allow for flexibility in programming and ensure the longevity of the space and built in structures. 

There is considerable interest in expanding the RTM initiative beyond the initial 25  projects, including on school property. If the RTM centres are going to respond effectively and efficiently to the shortage of spaces and be of a common design, taking the time now to consider some of the issues in consultation with at least the existing RTM operators could go a long way to ensuring that future RTM centres can be designed, developed and constructed to provide the best spaces possible for both children and staff, within the constraints of time, resources and different community needs.

Establishing a mechanism to evaluate the process and outcomes that involves meaningful consultation and input from the partners and other key stakeholders could help improve the design as well as provide opportunities for directors and staff to feel greater ownership of the space and their program, which in turn will support quality environments and quality provision. 

Acknowledgements

The opinions and interpretations in this publication are those of the author and do not necessarily reflect those of the Government of Canada.