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Camp Hutchins pays rent of $1 per year

Can Lodi afford to subsidize this day-care business?


Tuesday, June 17, 2008 6:45 AM PDT

Comments (25 comment(s))

Generally speaking, I think we can all agree that government should provide services that private companies cannot or perhaps should not.

I think we all know what those are — police and fire protection and basic public works. I also think that government should provide services where private companies just don't do enough, such as recreation.

With that said, it really bothers me when government blatantly competes with private businesses or gives one company a competitive advantage over another. This bothers me for a few reasons. First, it just isn't the American way of free enterprise and fair competition. Second, the business with the competitive advantage will likely be worth more because of the subsidy. Third, because one company has the subsidy, it may limit competition and thus choices. Lastly, it isn't a good use of our tax dollars.

The reason I bring this up is because the city of Lodi is providing a subsidy to Lodi Memorial Hospital for Camp Hutchins, a day-care business, and I think it should stop. The subsidy is in the form of basically free rent at Hutchins Street Square. According to the current contract with Lodi, Lodi Memorial Hospital pays $1 per year in rent for several thousand square feet of space. Yes, $1 per year. The current contract between the city of Lodi and Lodi Memorial expires on Aug. 1, 2010.

Since 1998, Lodi Memorial Hospital has operated Camp Hutchins. According to people that I know that sent their children to Camp Hutchins, it is a wonderful program but this is not about the quality of the program. This is about Lodi not competing with private businesses or subsidizing one business over another.

To determine what kind of advantage Camp Hutchins has, I compared rates and availability for a 4-year-old child by calling a few other places in Lodi. What I found was that Camp Hutchins was the most expensive and it wasn't available. Camp Hutchins told me that their current rate for a week was $138 and there was a waiting list for all ages. The others that I called ranged from $106 per week, where there was one open slot, to $135 per week, where they had plenty of openings.

Go figure! I am sure these other places have some type of facility charges, such as rent, that far exceeds $1 per year, yet they are all cheaper and they all have openings? How can that be?

Maybe the quality of care and opportunities at Camp Hutchins are so great that people are willing to pay a premium. I think that is wonderful, but that is not my point.

Why is it that Camp Hutchins receives such a significant subsidy from you and me yet they have the highest rates? Why don't they have the lowest rates? Why don't they offer their programs only to those that cannot afford to go to the other facilities or that meet some other criteria where society will benefit from such a substantial subsidy?

The reality is that because of the subsidy, Camp Hutchins must be making a lot more money than all the others and we are paying for their added profits (If they aren't making more money, they must be poorly managed but that cannot be the case because kids are on a waiting list to get in even though the price is higher).

We are paying for the added profits by not having the space at Hutchins Street Square available for rental or other use. A few months ago, the director at Hutchins Street Square said that space for additional staff, from the Recreation Department, was not available at Hutchins Street Square. It was not available because Lodi was giving it to Lodi Memorial Hospital.

Lodi should not and cannot give things to businesses that compete with others. When the contract expires, it will be time to tell Lodi Memorial Hospital what fair rent is. If they don't want to pay it and they close Camp Hutchins, fine. The other places that provide day-care seem to have plenty of space.

John Johnson, CFA, is a Lodi-based business appraiser. You can reach him at john@johnejohnson.com or 369-1451.

Reader Feedback

commonsense wrote on Jun 22, 2008 5:49 AM:

" When something is working so right--why change it? Get a grip people, preschool helps build the character of our future leaders. Give alittle, and reap the rewards of the future! "

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LodiToday wrote on Jun 21, 2008 11:48 AM:

" Now I understand why Mr. Johnson was NOT elected to the City Council. The City of Lodi has continued to nurture the relationship between Lodi Memorial Hospital and this community. I'm trying to figure out why Mr. Johnson has his panties in a knot over such a wonderful daycare program as Camp Hutchins. Does his sister own a day-care business or his wife and all they can do it whine that life isn't fair?
I've been unemployed for two (2) years, I drive an old car, and my child does go to Camp Hutchins. I waited over a year to get into the program, cuz the others I tried in town were below my standards and offered limited services. I struggle each week to make the payment, but it's the safest, cleaness, and offers my child a good start towards getting a good education. Most of you people haven't got a clue as to what a find program CH offers for this community. "

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papercut wrote on Jun 21, 2008 10:52 AM:

" You know what non-profit means? Those on top get paid well while all others work for peanut wages and the volunteers work for free. So what are all the profits from Camp Hutchins being put back into? Their $1 rent? The utilities and maintenence are provided by Hutchins. So does that mean these profits go to higher wages for the administrators of this program? Why would anyone open a daycare center and try t compete with Hutchins when they don't have any bills or expenditures except payroll? There should be a limitation on wages to make this program fair and available to those who need it and can't afford it, not the wealthy and well connected friends and families just because they know someone. "

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commonsense1 wrote on Jun 20, 2008 10:45 PM:

" Come on papercut, let's hear how all of these privleged folks have taken advantage of you. It must be hard for you, having to watch all of these unscrubulous, no-good, low-down, money grubbing, so-in-so's taking advantage of you. I can't imagine how you sleep at night. It's just not right for them to excell, while you wallow in your negative dribble. "

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RogerGI wrote on Jun 20, 2008 7:36 PM:

" Camp Hutchins is a non-profit and any extra money goes back toward the program. Which is probably why it has a waiting list. I may sound biased, but when you've had your children at two other places in Lodi before CH, you really see the difference. Also, Mr. Johnson failed to mention that I believe 2 other daycare business are at churches. I wonder if they also receive financial subsidies of some sort? The bottom line is that people want quality daycare but aren't necessarily willing to pay for it. I believe that only CH and La Petite are not affiliated with churches, etc. and are the only two that also offer transportation. Their pricing structure is similar as well. The only real difference is that CH has about 1/4 of the children, which goes back to the child to adult ratio. Mr. Johnson, didn't you used to have your children @ CH? Leave it alone! "

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RogerGI wrote on Jun 20, 2008 7:22 PM:

" Can Lodi afford to subsidize this day-care business? YES it can, especially when a full-time daycare business, that is one of only two that transport children from/to other elementary schools to their facility; offer a realistic adult to child ratio; don't fall into the trap of "out yelling the kids" but rather, have control; and finally, have an entire staff (adults & young adults) that actually care for the children. It's really a no-brainer. If Lodi had more options for working parents, then maybe consider looking into CH, otherwise, just leave it alone. I have children there, but also had them @ two other full-time facilities (I believe there are only 4-5 in town) and CH is by far the best. I don't know the history of the CH clientele, but it's not currently catering to the wealthy, connected, etc. Time to look elsewhere... "

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Goodgoing wrote on Jun 20, 2008 11:10 AM:

" I wonder, if the City of Lodi is subsidizing this child care facility are only children residing within Lodi city limits able to use this child care? "

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OTH wrote on Jun 18, 2008 11:25 AM:

" papercut Have Faith lol "

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Leonard wrote on Jun 18, 2008 6:37 AM:

" Lodi is tremendously underserved in terms of day care. One of the reasons why I worked at home when I lived there was I simply couldn't find a place that I trusted to care for my daughter that had an opening.

People should stop worrying about Camp Hutchins and start thinking about what they can do to encourage more good quality centers to open. "

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papercut wrote on Jun 17, 2008 8:53 PM:

" OTH, you notice that commonsense1 and his foru or five other cheerleaders always spout the same old I love Lodi and how great this town is doing. I always hear them praising our city leaders for doing such a great job, but nver mention the couple hundred million or so in debt they've gotten us into. I could even do a helluva job with a couple hundred million of someone else's money> And not have to worry about paying it back even if I paid a hundred million or so for some electricity worth only half that, like Hansen did. Good job Hansen and commonsense1. We need more leaders like you. "

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papercut wrote on Jun 17, 2008 8:48 PM:

" oth, you got that right, just ask commonsense1 or one of his other cheerleader alter egos. It's like the North Dakota Germans still rule Lodi. "

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OTH wrote on Jun 17, 2008 8:40 PM:

" Until you get the incestuous relationship between LMH and HSS separated, you will never seperate the two. Big Joe carries a lot of clout.

Papercut the reason you will never see a council person from
the eastside is their skin is brown. It takes money to buy an election in Lodi. "

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commonsense1 wrote on Jun 17, 2008 8:36 PM:

" You ever get the feeling old Papercut feels he has been wronged by the world? He is a "have-not" and thinks people that have attained some success have done so by cheating him out of his due. If PCut spent more time working and less time whining his attitude would change. "

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papercut wrote on Jun 17, 2008 7:49 PM:

" nellie, read em and weep. I'd like to see the income levels of those well connected parents at camp hutchins, and who they're related to or know. And a money making machine, Lodi memorial, and a nonprofit at that paying $1 for rent? Now that's criminal. "

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Whoa Nellie! wrote on Jun 17, 2008 5:25 PM:

" Pcut- your rants here are hilarious.

More conspiracy theories abound from your cynical mind. Now about socio-racial enrollment discrimination at Camp Hutchins. You are crazy.

First, HSS/Camp Hutchins and the Boys Club are two different things. It's like comparing Apples & Kiwis. Not even the same continent.

I feel John left out some vital information (already pointed out). What is the cost of Le Petite? Other comparable programs in town.

So lets say Camp Hutchins leaves HSS. With out extensive remodeling what can that space be used for to generate income? Probably nothing. "

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papercut wrote on Jun 17, 2008 2:50 PM:

" I thought this was openly blatant discrimination? But then, with all those well to do, high paid and socially accepted white faces on the council and management teams, not to mention all of their department leaders and their lapdogs and gofers, who's going to offer to actually send their children to the eastside for any knid of program? This town is so socially backwards and if Lodi wants to survive socially or financially, it's got to make a drastic change, and soon. "

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papercut wrote on Jun 17, 2008 2:44 PM:

" There's plenty of room at Blakely park and that'd free up those facilities at Hutchins to be rented on a daily basis year round and generate some income so Hutchins could pay down its debt to the city and not keep increasing it. I believe there are also duplicate programs for the wealthy and lower income seniors at both Hutchins and Loel that should and could be merged to save money. City council and their shot callers need to let this two caste system go until Lodi bails itself out of debt and replaces these self serving city leaders with representatives that care about Lodi and not themselves. Why does Camp Hutchins administer the same programs as the boys and girls club at Blakely park? Doesn't that just openly show that these programs are double dipping, one for the predominately white children on the wealthier wastside and one for the minorities and poore children on the eastside? Why? "

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papercut wrote on Jun 17, 2008 2:17 PM:

" You don't get it do you? This is a program for the wealthy and their well connected cheerleaders and their friends only. Huthcins still owes the city over 10 million dollars and still loses that 1.5 million every year, a good amount due to this program that provides a great service to those who are connected, and those struggling are left out. I'm saying they need to pay their fair share and find their own facilities. Why don't they merge the program there with the one at Blakely and make one day care center and cut the expenses in half? "

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educated reader wrote on Jun 17, 2008 9:35 AM:

" I used to send my kids to Camp Hutchins pre-Lodi Memorial ownership and when they were located in a single portable facing Rose Street. It was a good program for the kids when they were "off-track." Since Lodi Memorial took over and moved into the main building there were suddenly no openings and kids who had gone there for years couldn't get in. My daughter asked me to take her out after a week because she didn't want to put up with all of the new snobby kids. "

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reality wrote on Jun 17, 2008 9:32 AM:

" well papercut has finally introduced race into his jabbering. if you are so uptight consider the fact that years ago the city gave the land where the boys/girls club is for $1 a year on a 40+ year lease. what is the racial mix of the B/G club participation? "

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justme wrote on Jun 17, 2008 9:21 AM:

" Papercut....get over it. Camp Hutchins is a wonderful program as is the program that Lodi Park and Rec has at Legion Park and Lodi Lake. Comparing the prices~I split my kids between the two programs. No bias, no BMW or SUV in our family. We were at a licensed home daycare that had way too may children there. The owners were kind and loving but willing to take on too much which put our children in a situation that we did not feel was beneficial for them. Did you check the prices with the other private daycares at the churches? Don't be so harsh on Camp Hutchins because you haven't see the inside operation. The kids are safe, well cared for and well educated. That is why we go there. Not because we are wealthy, nor because we have a racial preference. You don't know what you are taking about...so buzz off. "

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papercut wrote on Jun 17, 2008 8:48 AM:

" Just take a look at your city council. And your city management. Do you see any minorities or anyone representing those who are poor or less fortunate representing the poor and rundown eastside? Our own Mayor lives on the eastside and anything she suggests is overridden by at least the three white male members and usually by the uppity school marm as well. They're all well off and could more or less give a damn about us unless it's green. Scraping to make ends meet to them means using their city credit cards for a taxpayer paid meal at rosewood or wineand roses. Time for a change in November. "

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papercut wrote on Jun 17, 2008 8:41 AM:

" There's no space available at Camp Hutchins? Gee, I wonder why? The powers to be have their own clientele and no one else will even be considered. What is the racial balance there? Are you required to have a big suv or bmw to get those services? Why would a nonprofit like Lodi Memorial be getting $1 a month rent for those facilities? and now they're at Lodi Lake taking up space for park goers. This is one of the very many programs that have Hutchins Square losing nearly $1,500,000 each and every year. The minority programs on the east side pay their own way, why not the well to do rich white boys and girls programs at Hutchins? "

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JohnnyBLodi wrote on Jun 17, 2008 7:52 AM:

" Excellent column! If the City is going to rent out space they should charge a competitive price. If the city is going to compete against an exisitng business they at least should do so fairly. Consider the unfair competition offered by dial-a-ride compared to our local private taxi company. "

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reader wrote on Jun 17, 2008 7:01 AM:

" Give working parents a break! There are only four (including Camp) preschools that offer daycare in Lodi. In my opinion Camp Hutchins has the best program and highest qualitity of people working there. Do you want to leave your child at a daycare that always has openings? ----working mom "

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