Dear Editor,

This letter is addressed to the residents of Nederland, regarding TEEN, Inc.’s proposal to lease the vacant Old Town Shop Site (750 W. 5th St.) for a $1/year for 99 years to build a new infant, toddler, and preschool center. The town-wide mail-in vote will take place in late July. Ballots must be received by 7 p.m. on July 30, 2024.

This proposal has generated numerous comments, pro and con, on various social media sites. In this letter, I want to address the financial aspect of the controversy. One of the primary objections to the proposal is that the town would be “giving away” a valuable asset, the land, when it “should” sell the lot and use the proceeds to help the cash-strapped municipality meet its operating budget.

From a financial standpoint, selling a capital asset (land) to finance ongoing “living” expenses is a bad idea. Imagine that your family owns the house in which it lives, but doesn’t have enough income to buy groceries. One option would be to sell your house and buy food with the proceeds. That works great—your family can now eat! But once that money runs out, you can no longer eat—nor do you have the house. From the town’s perspective, proceeds from selling this parcel might ease its budget crunch for a short while, but when that money is gone, the town no longer has that asset.

Yes, the town of Nederland is offering to lease the land at a bargain rate to TEENS, Inc. It should be noted, first, that such leases between government entities and private organizations are common. The government (in this case, the town of Nederland) is doing so to attract a private partner (TEENS, Inc.) to provide a service desperately needed by the community. This act— providing a service needed by the community—is one of the primary purposes of a local government, and the mechanism of an advantageous land lease is a popular method. By doing so, the town is inducing its private partner to invest more money to build the facility. And, as a failsafe, if the childcare operation does not succeed, the town ends up with the land PLUS a high quality building. The town of Nederland never relinquishes its ownership of the land, and gets the improvements thereon. TEENS, Inc. estimates that the building will cost several million dollars to construct, none of which will come from the town or its residents.

Contrary to the objections raised by some, the town of Nederland and its residents will actually benefit financially from this proposal, not harmed. Not only will its residents, and those from surrounding areas, reap the advantages of high-quality, affordable early childhood care and education, it will do so at no cost to the town. The citizens of Nederland will gain a much-needed childcare facility, people from surrounding areas will come to Ned on a more regular basis and spend money here, and we are more likely to attract and retain families in and around Ned. That seems like a win-win-win to me.

I urge you to vote “yes” for this proposal.

Craig V. VanSandt, Ph.D.

Nederland