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July 28, 2011

If you always dreamed of owning your own prison...

get out your checkbook and head down to Texas ASAP, as explained in this interesting local article:

Littlefield residents hope to lighten a heavy tax burden with the crack of an auctioneer’s gavel.  The city’s Bill Clayton Detention Center will go on the block today at 11 a.m. for an opening bid of $5 million in the first known auction of a prison in the state.

Littlefield hopes to claw out from under more than $9 million in debt tied to the more than 94,000-square-foot complex, which has remained empty for two years....  [T]he bonds to construct the center have put heavy pressure on the city’s tax rates, and sale proceeds would help buy down the debt.

The detention center was supposed to be an economic boon.  City officials had dreams of it employing up to 150 with a $2.7 million payroll as they prepared to break ground in 1999.

Ultimately, the project expanded to its present 30-acre site in 2005 and housed adult prisoners on contract from the Idaho Department of Corrections, instead of the juvenile offenders they had once planned.

GEO Group Inc., a for-profit prison corporation, laid off all 74 contract workers when it cancelled its contract with the city in 2009.  The group had lost its contract with Idaho because of concerns over prisoner safety.

Inmate Randall McCullough died in Littlefield after spending roughly a year in solitary confinement for an assault on a prison officer.  His son filed a wrongful death lawsuit against the GEO Group last year. That lawsuit is pending in Comal County.     McCullough alleged negligence, fraud and public corruption in his father’s death....

Littlefield has had four visits with six interested parties over the last two months, [the realtor] said.  About half of the prospective bidders would be on site, with the other half participating live via the Internet, he said.  All of the interested buyers are private detention companies.

UPDATE:  This new local piece, headlined "Littlefield prison sells at auction for $6 million," reports on the results of the jail auction.

July 28, 2011 at 08:50 AM | Permalink

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