In my personal opinion it can be good. Merced does have a high crime rate but there are plenty of good areas in Merced. I think it would be good for you knowing that you do a daycare as Merced is a large valley city.
Everyone will have different opinions I am sure but I say for business purposes it would be good. If you were looking for a city with a better crime rate than I would suggest one of the many smaller towns surrounding Merced, but then I think it would be harder to do a daycare.
Hope this helps,