This year, Children's Choice plans to construct seven to 10 centers nationwide in an aggressive strategy that is being mortared by lucrative contracts--some signed and some in the talking stages--with casinos, hospitals, corporations and telecommunications companies in Texas, Nevada, Iowa, Louisiana, Mississippi, Arizona, Illinois, Pennsylvania and Kansas. In back-to-back deals this week, Children's Choice has signed deals to build $4-million, 21,000-sf centers for MGM Grand Hotel and Casino and the Medical City Dallas Hospital.
Jeff Seeberger, Children's Choice COO, disclosed to GlobeSt.com that at least 18 deals are pending for employers in Dallas, Houston, Austin and San Antonio. The provider opened its first center in May 1999 in Kansas City. In June 2000, the Texas Station Casino center opened followed by a Nov. 27 launch at Boulder Station Casino, both in Las Vegas. In the next month, centers will deliver for employees of Sunset Station and Palace Station casinos, also in Las Vegas.
In Texas, deals are pending with the Medical City Hospital of Plano and its Lewisville subsidiary hospital plus up to four Dallas-Ft. Worth corporations. Seeberger has disclosed talks are ongoing with the Staubach Co. for an on-site child-care center.
Seeberger says the rollout is aggressive, but it's not an attempt to be "like McDonald's or Blockbuster." He says the company is selective about its markets. "Realistically, over the next five years we'll build 75 centers," he tells GlobeSt.com. "We don't want 12,000 Children's Choice centers ... we just want to be the premier child-care provider for the corporate US."
The structures often are built on the employer's land and some centers service more than one employer. Each center is staffed to care for 250 to 300 children per shift, says Seeberger. Tim Short of Studio One in St. Louis has been the lead architect for the design team while Rafael Construction is the general contractor in the west and southwest regions. Three companies have been used to build centers in the Midwest and Dallas. Seeberger says a regional contractor will be selected in the next month. Each center costs $3.2 million to $3.6 million, excluding land. Ground-breakings often coincide with announcements of the latest deal.
The Medical City Hospital of Dallas, the first Texas hospital to be signed, will have one of the largest facilities in the chain's portfolio. The hospital employs about 2,700 so the center will be licensed for a capacity of 330 children per shift. The center will be done in August if all goes well. According to the company Web site, contracts are pending for hospitals in Arlington, Austin, San Antonio and another in Las Vegas.
Earlier this week, Children's Choice had announced a contract signing with MGM Grand to build a center for its 8,000 workers and employees of New York-New York Hotel and Casino. The center, scheduled for an August delivery, will be "the first freestanding employee child development center" on the Las Vegas Strip, says Leslie Wulf, founder, president and CEO of Children's Choice.
MGM, in turn, has set up a scholarship foundation for employees who need financial assistance with child-care costs, according to William Hornbuckle, MGM Grand president and COO.
Children's Choice provides round-the-clock childcare for workers with non-traditional schedules, targeting the gaming and entertainment industry as well as health-care, telecommunications and manufacturing. The concept had been nearly five years in the making before the first grand opening, according to Seeberger.
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