DYSART - Projects in two Northeast Iowa towns may be coming closer to fruition with the help of federal funds.

Dysart officials recently received notification that the city qualified for $3.3 million in loans from the U.S. Department of Agriculture's Rural Development Office for an assisted living center.

In West Union, members of the City Council are in the process of applying for a $1.5 million community development block grant for a child care center.

Dysart Mayor Don Lyons said getting word about the loans was a big step forward for the project, dubbed Dreamfield Village.

"This means so very much to us," he said.

Officials learned at the beginning of the month the city qualified. As part of the package, Dysart must raise $1.2 million in private donations to match a portion of the money. That's been difficult so far, Lyons said, because of the downturn in the economy, but the situation hasn't dampened his spirit.

"We're still confident it can be obtained," he said.

About half has been accounted for so far, Lyons added.

The total project will cost $4.8 million, according to city officials, which will pay for a center covering 31,000 square feet with 31 units. Officials predict Dreamfield Village will create 20 full-time jobs.

In West Union, supporters promoting the Kaleidoscope Kids Daycare Center hope they will see similar progress in the near future. The City Council recently backed a $500,000 grant application for the $1.3 million project. The remainder of the money will come from various grants, donations and loans.

Jenni Elsbernd, director of the Kaleidoscope board, said the center started out in a church basement. Over time, the facility outgrew its confines, and now administrators would like to find their own home.

"We knew (the church) was a temporary location," Elsbernd said.

The proposed center will cover 7,500 square feet and will be able to accommodate about 100 kids. While similar facilities are available in Fayette and Ossian, no one has built a center strictly for day care, Elsbernd said.

For many parents, the idea of having their children nearby while they are at work is alluring, she added.

"It's kind of reassuring that their children will be in the same town they work in," Elsbernd said.

The board won't hear back about the grant application until March.

Contact Josh Nelson

at (319) 291-1565 or

josh.nelson@wcfcourier.com.