Red River Regional Council

When public and private partners come together, real progress follows. That collaboration made Walsh County’s new childcare center in Grafton possible—a $1.38 million investment that turned a Main Street building into a thriving childcare hub. The project shows how shared commitment from employers, local organizations, and public agencies can solve workforce challenges and strengthen community growth.

Quality childcare is a critical issue that affects workforce recruitment, retention, and quality of life in Walsh County. Identified as one of 15 North Dakota “childcare deserts” in November 2024, Walsh County had less than 50 percent of the needed childcare slots to meet demand. A lack of childcare is repeatedly identified by employers as a major barrier to growth. Because the childcare business model is broken, providers are unable to scale up to add capacity.

To help create more childcare slots, the Walsh County Job Development Authority launched a plan to renovate a 5,000-square-foot building on Grafton’s Main Street into a turnkey childcare center. A licensed childcare provider would then rent the space to operate and grow their independent business within the center.

The goal of this model was to lower provider operating costs in order to increase the availability of quality childcare. The first tenant, Rocking Horse Child Care, began operating from the Center in February 2025 and has grown enrollment from 30 to 48 children and counting. The Walsh County Childcare Center was designed so the tenant could be licensed for up to 65 child care slots.

The total renovation cost came to $1.38 million. By August 2025, the facility was fully funded through 26 sources, including cash and in-kind donations from employers, local and state organizations, grants, and public funds.

The Walsh County JDA currently owns the facility and is in the process of transferring ownership to an existing nonprofit, the Red River Community Housing Development Organization (RRCHDO). RRCHDO will act as the landlord to the childcare provider, charging affordable rent to help cover building expenses and maintenance. CHDO ownership will ensure the facility remains dedicated to childcare in the long term. This unique ownership model supports long-term sustainability—an uncommon approach in childcare centers—by keeping the building debt-free.