To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources and Development Director
Prepared By: Molly Rattigan, Community Resources and Development Director
TITLE:
Title
AB 562 Report for Le Petit Elephant Loan
LABEL
RECOMMENDED ACTION:
Recommendation
Hold a public hearing and accept the AB 562 Economic Development Subsidy Report for a $175,000 loan to Miss Mama, LLC doing business as Le Petit Elephant.
Body
DISCUSSION:
On June 17, 2025, City Council authorized the City Manager to enter into a loan agreement in the amount of $175,000 with Le Petit Elephant to allow for building permits to be issued for the retention and expansion of childcare slots in the City of Napa at 15 Chapel Hill Drive.
The loan was approved as a zero-interest loan due in full three (3) years after the closure of the loan documentation with no cash or payments to be provided directly to Le Petit Elephant. Instead, the loan will be recorded in the City’s General Fund, and the funds will be used to pay building, planning and other related fees required for the issuance of the building permits to begin construction on the site. The current estimated loan fees are detailed in Attachment 1.
To comply with Assembly Bill 562, the City Council is required to hold a public hearing before approving any Economic Development Subsidy, including loans, over the amount of $100,000. The bill states that beginning on January 1, 2014, each local agency must provide a written report that details the terms of the subsidy and the economic impacts anticipated from the recommended subsidy. The AB 562 Report for Le Petit Elephant is included in this report as Attachment 2.
Today’s action allows the City Council to review the required AB 562 report and hold the public hearing required to complete the loan transaction. This report and subsequent reports on the impact of this loan will be posted on the City of Napa’s website under the Economic Development Division.
FINANCIAL IMPACTS:
The Financial and Economic Impacts are detailed in Attachment 2.
CEQA:
The Community Resources and Development has determined that this item is not subject to review under CEQA pursuant to CEQA Guidelines Section 15060(c)(3), because it is not a “project” as defined by CEQA Guidelines Section 15378 and is more akin to a governmental fiscal activity. The project was subject to CEQA review when the use permit was considered and approved.
DOCUMENTS ATTACHED:
ATCH 1- Estimated Permit Fees as of October 29, 2025
ATCH 2- AB 562 Report for Le Petit Elephant
NOTIFICATION:
In accordance with The Ralph M. Brown Act, the City Council agenda was posted at least 72 hours in advance at www.cityofnapa.org <http://www.cityofnapa.org> and on public bulletin boards outside City Hall.