The Red Deer Child Care Society has not given up its efforts to buy its Johnstone building.
Despite being turned down for a loan from the City of Red Deer on Monday, society executive director Rob Elliott said the non-profit will explore other options.
The lease on its building is set to expire on June 30 and the society feels it makes more sense to own the building.
Elliott said owning the building would provide stability for the non-profit and ultimately improve child care out of the facility.
The society has qualified for a mortgage for most of the $550,000 asking price for the facility but is about $150,000 short.
The society hoped the city would contribute to the cause.
Council turned down the request, citing that the city is no longer in the child-care provision business and that this would open the door to more financial requests.
Elliott said the society will look at other options and will renew the lease if all else fails.
The society has provided child care in Red Deer since 1970.
Fifty children ranging in age from newborns to 12 years old are in the programs.