Paul Murphy / Eyewitness News
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ALGIERS, La. - The state promised the Marines daycare as part of the quality of life inducements that lured the reserve headquarters across the river to the new Federal City Complex.

The Westbank YMCA claimed it is losing up to $18,000 a month running the child care center on the former navy base in Algiers.

'We're serving the families that have entrusted us with their children. It's unfortunate that the adults have to screw it up sometimes by not trusting one another with the money,' said YMCA President David Ozmore.

The YMCA claimed the state and the master developer for the site, HRI, promised to pay for repairs to the old building and projected losses during the first year of operation.

Ozmore said a settlement offer is on the table for the improvements to the building.

'We have received an initial offer from HRI and our attorneys are reviewing that as we speak,' Ozmore said.

'We agreed to go ahead and pay the YMCA the capital costs because we didn't want to see them in the lurch. We've made that proposal to them to get the facility open,' said HRI Chief Executive Pres Kabacoff.

But, Kabacoff said that's where his obligation ends.

He claimed start up costs and money to compensate the YMCA for business losses is the state's obligation.

State Representative Jeff Arnold, who chairs the state board responsible for Federal City, is working to resolve the dispute.

'I know the payments on the lease are as little as a dollar a year. There are other components with regards to subsidies that we're working out to fulfill our obligation to the Marine Corps,' Arnold said.

In the meantime, the YMCA is preparing to hand the daycare center to another provider July 1.

'We'll certainly do our part. We do not want the families to go without care,' Ozmore said.

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