Negotiations stall on Denali day care
Published Saturday, March 22, 2008
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Stumble It!HEALY — Negotiations between the Denali Borough Assembly and the owner of Healy’s only state-licensed child care and preschool facility ended badly this week, with both sides holding letters from their lawyers.
Both are going to try again.
At stake is the building formerly known as Kid’s Stop, which Shelly Merrell has run for less than two years as the Denali Preschool and Learning Center.
She bought the building and the long-failing child care business for $8,000, and her contract required her to run it as a child care facility for at least three years or it would revert to the borough. Less than two years later, she tried to sell the building as a private residence for $100,000.
The local community erupted in protest and the Borough Assembly filed a lien on the property. A select group of assembly members entered negotiations, in hopes of compensating Merrell for her expenses in upgrading the building.
The grand plan is to return the building to the community. A group of mothers is forming a nonprofit board to run the child care facility. The building was originally acquired in 1986 with a state grant.
But negotiations did not run smoothly and at a special meeting Friday night attended by about 40 people, and the Borough Assembly reported no progress.
According to their report, the first meeting seemed hopeful, but at the second meeting, the Merrells said a lawyer had advised them not to produce their receipts or their signed contract.
Their lawyer also sent a letter to the Borough Assembly demanding that the assembly remove the lien from the property.
“I do not feel that the negotiation was a true negotiation,” Merrell told the assembly. “Nobody knows the economic hardship this business has put on my family this past two years, or the effect it has had on my well-being the last month.”
At Friday’s meeting, Merrell agreed, again, to enter negotiations, but this time, the assembly wants assurance she plans to negotiate in good faith.
In essence, the assembly asked Merrell to produce her signed contract — apparently she holds the only copy — and receipts for all her building expenses inside and out, by Tuesday at 4 p.m.
If that happens, negotiations will begin immediately. If not, the lien will remain in place, effectively putting a cloud over the title.
“There has been nothing produced anywhere that says there was even a sale,” assembly member John Winklmann said. “I believe something happened two years ago, we just don’t have a record of it. At the very least, there should be two copies, a seller and a buyer. To date, we haven’t seen either.”
Former Kid’s Stop board president Leslie Smith told the group she has been unable to find a copy of the contract and her lawyer in Fairbanks apparently lost her file and can’t find a copy either.
Merrell also stated that paying her back the $8,000 purchase price plus her equity is not going to cut it.
“To me, that’s not a fair and equitable price,” she said. “But I’d be willing to enter negotiations again.”
Meanwhile, there is some pressure to resolve this quickly. Merrell closes her doors on March 31. An interim spot has been found for child care at Morning Star Baptist Church, but that is not a permanent home.
Presiding assembly member Armeda Bullard summed it up best.
“This isn’t about any of you adults sitting out there,” she said. “It’s about the children of this borough and all the future generations.”
She held up the two letters from lawyers — one from Merrell’s lawyer and the response from the borough lawyer. She cautioned that failed negotiations will lead to only one thing.
“These are the people who will win,” she said.
Community Discussion
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I'm sorry. She signed a contract stating that she'd run the facility as it was for three years, and then her well-being suffered when she chose to sell it before the contracted-for time was up? What exactly are they negotiating for here again...?
I am very saddened by the turn of events here. Ms Merrel took a failing business, one that parents were NOT sending their children to and turn it in to the preschool/ daycare center it was years ago where children loved to attend and parents were please with their children's preschool education. Ms. Merrel Deserves kudos for that.
HOWEVER, to go from one day that you have an agreement then a mere 2 days later turn around and refuse concerns me greatly. Ms Merrel, the community put its trust in you when you signed that contract. I understand that situations change and there is a need for you to leave and move on. Give back the trust that was given you and do the right thing. Settle this, show the reciepts, show the contract, show every cent that you poured into this business. The Borough has acted in good faith that you wanted a settlement. The community -parents and children are waiting for you to keep your word.
This is about the children and the message it is sending.
this is about Trust.
This is about Honesty.
This is about the CHILDREN.
The lawyer lost the file?
No one wants to produce a contract?
Negotiations in good faith?
This isnt about children, its about:
Profit
Disillusionment
Greed
Litigation...
Also, its about the question of how far government can go when interfering with the rights of its citizens. For the borough to act as negotiators is one thing; but to do so when there is a vested interest is completely another. That in itself reeks of Orwellian force. If the borough has a legal right to place a lien on property, where is THEIR signed copy of the contract, and who signed it?
This will be a long, drawn out court battle, wait and see.
This actually is not about the Children; this is about someone trying to get out of a contract. Saying it's all about the kids is a cop-out and trying to make someone feel guilty, obviously the day care wasn't that important before, or the daycare wouldn't be failing but thriving. I happen to be a part of the community too, and I disagree with your statements. So please stop saying “the community" are waiting.. You are again just using words to force an issue...
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