In the News

CDO Tim Sheehan sets the record straight on ARPA funding for Playful Minds Daycare

|   City News

In the MassLive article regarding the denial of a requested $1.5 Million in ARPA funding to the Longmeadow based company Playful Minds, the reporter, applicant and the city councilors commenting on this story failed to provide the public with the facts behind the City’s determination not to fund this particular application. So that the public is not misled, it is important that these facts be known. I am comfortable in reviewing this application publicly, because the applicant has made it public.

A significant determinate regarding Small Business ARPA funding is the ability of the business to prove that it experienced an economic loss during COVID.  Playful Minds could not demonstrate any economic loss to their business.  In fact, in 2020 their taxes indicate that their business income increased 205% from their income in 2019.  In 2021 their business income increased by 188%.  The applicant stated in the application that the significant federal and state COVID assistance provided to them prior to their application had helped them to maintain “…a good financial position moving forward” and that their enrollment had “…continued to steadily increase”.    

The COVID related impacts to the business cited in the application indicate that such expenses and challenges only prevented the business from making even more money than it actually did.  The applicant further stated in the application that they were applying for the ARPA funding “at nearly the eleventh hour”, not for any specific impacts associated with COVID, but rather “unexpected challenges” associated with their redevelopment of 281 State Street, as the scope and cost of that project had unexpectedly increased.

With regard to how much ARPA funding has been invested in early childhood education and youth development, the City is proud to say that investment stands at nearly $6 Million.

I sincerely appreciate the investment that Playful Minds has made in Springfield and the service that their business provides.  However, the United States Treasury monitors the City’s deployment of ARPA funding.  Ultimately it is the City’s responsibility to ensure that its ARPA awards are consistent with the Treasury issued ARPA Final Rule regulations.  In those regulations it states very clearly that any ARPA award must be proportional to the COVID related impact. In this particular case there was no negative COVID related financial impact on the business.  Playful Minds revenues sharply increased during COVID. This was conveyed to the business by letter on March 20, 2023 and during their appeal.  The owners could not provide any documented evidence that differed from the narrative of their tax returns.

Finally, I would like to comment on the importance of outdoor dining and the economic recovery of the hospitality industry in Springfield which the article diminished the importance of.  Pre-COVID the hospitality industry was third largest business sector in the Massachusetts economy. COVID crushed the hospitality sector economically and it has yet to fully recover.  The businesses within the hospitality sector are critical to the vibrancy and economics of the City.  As such the City will continue to do all that it can to ensure these businesses not only recover, but thrive going forward, thus increasing the opportunity to attract new investors, new businesses and new residents to Springfield.

Sincerely,

Timothy T. Sheehan

Chief Development Officer

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Page last updated:  Tuesday, March 1, 2022 01:32 pm