>> Eric: APPRECIATE YOU SHARING YOUR EXPERTISE WITH US.

THANKS VERY MUCH.

>> Cathy: THANK YOU.

>> HAPPY TO BE HERE.

>> ERIC: THE NUMBER OF HOME-BASED CHILD CARE PROVIDERS HAS BEEN DECLINING STEADILY IN THE STATE.

LEADERS IN STEVENS COUNTY ROLLED UP THEIR SLEEVES AND CAME UP WITH A WAY TO ADDRESS THE SHORTAGE THAT MAY BE THE FIRST OF ITS KIND IN THE STATE.

REPORTER KAOMI LEE TAKES US THERE.

>> WELL, TO THE STEVENS COUNTY CHILD CARE PROJECT.

I'M SO EXCITED TO HAVE YOU IN MORRIS TODAY.

>> OH, THANK YOU.

LET'S GO IN.

>> WELCOME.

>> OH, WOW!

LOOK AT HOW BEAUTIFUL ATHIS IS.

>> THANK YOU.

WE'RE VERY EXCITED TO SHOW IT OFF.

>> BRAND-NEW APPLIANCES.

>> YES.

YUP.

THIS IS SINGLE-FAMILY, HOME, REALLY, ONE BEDROOM, ONE FULL BATH, ALL THE APPLIANCES, WASHER AND DRYER ON SITE.

>> REBECCA YOUNG IS THE STEVENS COUNTY ADMINISTRATOR.

SHE SHOWS ME A 980-SQUARE-FOOT UNIT IN MORRIS THAT RENTS FOR $100 A MONTH PLUS UTILITIES.

BUT IT'S NOT TO LIVE IN.

IT'S FOR A CHILD CARE PROVIDER.

TO CARE FOR UP TO 14 KIDS.

IT WAS BUILT TO BE LICENSING COMPLIANT.

THERE ARE FIVE MORE SIDE BY SIDE.

STEVENS COUNTY IS TRYING TO SOLVE ONE OF HE STATE'S TOUGHEST PROBLEMS.

>> THE STEVENS COUNTY BOARD OF COMMISSIONERS LOOKED AT THE ISSUE OF CHILD CARE SINCE, REALLY, THE EARLY 2010s, AND IT'S A SLOWLY BUILDING CRISIS LIKE WE'VE SEEN IN THE REST OF MINNESOTA.

SO WE'VE LOST ABOUT 60% OF OUR IN-HOME PROVIDERS SINCE 2014.

>> THE COUNTY NEEDED NEARLY 220 SLOTS.

>> WE THOUGHT INITIALLY MAYBE A CHILD CARE CENTER WOULD BE A SOLUTION BECAUSE IT'S A LOT OF SPOTS, BUT WE KNEW STAFFING WAS AN ISSUE IN RURAL MINNESOTA.

SO WE KIND OF SET THAT TO THE SIDE.

>> SO THEY TURNED TO IN-HOME CHILD CARE.

THERE WERE BARRIERS FOR THOSE PROVIDERS, TOO.

>> EITHER THEIR HOUSE ISN'T BIG ENOUGH, THE REPAIRS WERE TOO COSTLY TO ALLOW DAY CARE IN THEIR HOMES, OR THEY'RE YOUNG AND THEY'RE JUST OUT OF SCHOOL AND THEY CAN'T AFFORD THEIR OWN HOME.

>> THE CHILD CARE CRISIS IN MINNESOTA MEANS COMMUNITIES HAVE TO GET CREATIVE.

STEVENS COUNTY DID JUST THAT.

>> WE ASKED THE QUESTION IF WE COULD CREATE SPOTS, WOULD PEOPLE RENT THOSE?

>> COUNTY LEADERS BET BIG.

THEY DECIDED TO USE ONE-TIME AMERICAN RESCUE PLAN ACT MONEY TO DO SOMETHING VISIONARY.

THEY BUILT A $1.2 MILLION MULTIHOME PROJECT ON THREE ACRES.

THEY HOPE TO CREATE AN AVERAGE OF 72 MORE CHILD CARE SLOTS.

>> AND IF FOLKS THINK YOU'RE CRAZY AT FIRST?

>> OH, YEAH.

YEAH.

THERE WAS A LOT OF, THAT'S NEVER GONNA WORK.

AND WE FACED A LOT OF OBSTACLES.

>> COUNTY COMMISSIONER JEANNIE ANAN NEVER LOOKED BACK.

>> I'VE ALWAYS BELIEVED IN THIS PROJECT.

I FELT VERY STRONGLY ABOUT THE NEED, BUT ALSO TO LIFT UP THE DAY CARE PROFESSION AS A WHOLE.

AND, SO, WE'VE REALLY ENCOURAGED THESE YOUNG PROVIDERS TO LOOK AT IT AS A LONG-TERM BUSINESS.

OF >> SUDDENLY THE COUNTY HAD MORE PEOPLE APPLYING TO BE CHILD CARE PROVIDERS THAN THEY HAD HOMES.

THAT'S A GOOD PROBLEM TO HAVE.

LAST YEAR HALF OF ALL CHILD CARE PROVIDERS IN THE STATE INDICATED UNCERTAINTY ABOUT STAYING IN BUSINESS.

20% SAID THEY'D BE GONE IN LESS THAN A YEAR.

RESEARCHERS SAY RECENT THERE HAS BEEN SOME IMPROVEMENT STATEWIDE.

>> CENTER PROVIDERS HAVE BEEN INCREASING IN NUMBERS, OR THEIR CAPACITY HAS BEEN INCREASING OVER THE LAST SEVERAL YEARS, BUT THE NUMBER OF FAMILY PROVIDERS AND THE CAPACITY OF FAMILY CHILD CARE IN THE HOMES HAS BEEN DROPPING STEADILY FOR ABOUT THE LAST 20 YEARS.

SO TO THE POINT WHERE WE'RE AT ABOUT HALF THE CAPACITY THAT WE WERE 20 YEARS AGO.

SO THE CENTER CAPACITY HAS BEEN GROWING, BUT NOT ENOUGH TO KEEP UP WITH THAT LOSS IN FAMILY PROVIDER CAPACITY.

>> THAT'S ESPECIALLY TRUE IN RURAL AREAS WHERE YOU NEED A CRITICAL NUMBER OF KIDS TO MAKE A CENTER PROFITABLE.

>> WHAT WE'RE SEEING NOW IS A LOT OF COMMUNITIES ARE PULLING TOGETHER GROUPS THAT MAYBE THE LOCAL GOVERNMENT, COUNTY, THE CITY, LOCAL NONPROFITS, FAMILIES AND PROVIDERS, CHURCHES, PLACES LIKE THAT AND EMPLOYERS, EMPLOYERS ARE A VERY IMPORTANT PART OF THIS BECAUSE IT'S THE CHILD CARE THAT MAKES IT POSSIBLE FOR BASICALLY, YOU KNOW, HALF THE POPULATION TO GO AND WORK AT THEIR BUSINESSES.

>> SHE SAYS SOME ARE USING A POD MODEL, WHERE MULTIPLE PROVIDERS CAN DIVVY UP SPACES AND ROOMS UNDER ONE ROOF.

>> THEY CAN'T CO-MINGLE THE KIDS, SO IT'S NOT LIKE YOU'RE HAVING A BIG GROUP OR ANYTHING.

THEY'RE ALL OPERATING SEPARATELY, AS SEPARATE BUSINESSES, BUT THEY GET TO DO THINGS LIKE SHARE OVERHEAD, SHARE RENT COSTS AND UTILITY COSTS.

>> IN THE CHILD CARE PROJECT IN MORRIS, THE COUNTY ACTS AS THE LANDLORD.

COMMISSIONER JEANNIE ANAN SAYS YOUNG PEOPLE WILL STAY IN A COMMUNITY IF THEY'RE HAPPY.

>> MY THING IS, PEOPLE SHOULD HAVE A CHOICE.

SO, WHETHER IT'S CENTER CARE OR HOME PROVIDER CARE, POD CARE, BUT THEY SHOULD ALSO HAVE A CHOICE OF PROVIDERS, AND THAT WASN'T HAPPENING.