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| Council Hears Pan to Triple Beds at Prison |
| By The Fort Morgan Times |
| Published: 03/13/2006 |
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A proposal to nearly triple the number of beds at Colorado's Brush Correctional Facility was made by Gil Walker, CEO of GRW, and Michael Harling, executive vice president of Municipal Capital Markets Group Inc., to Brush City Council members last week during a work session. Walker and Harling presented the council with a request to fund a revenue bond through the city which would be used to expand the current facility. The bond was not set as of press time as GRW is still working with an architect on the cost of renovations. With 275 inmates in the 300-bed facility, GRW is looking to take a proposal to the state of Colorado to add 750 beds totaling 1,050 beds in the facility. Essentially, the renovations would include expansion of the common areas, like the cafeteria, and the addition of housing "pods." Revenue bonds differ significantly as the facility's revenue would go to pay off the bond directly after operating expenses are paid, and the bond generates no excess taxes or debt. After the bond's creation, the underwriter would sell the bonds to accredited investors and deliver the bond proceeds to the trustee bank. The funding GRW is looking to obtain from the city would render the correctional facility property of the city (once the bond was paid off) managed by GRW. Harling noted that though it is a high-risk bond, there would be no risk of damage to city credit. Instead, the investors or bondholders would be taking a risk investing in the revenue bond. Walker said he doesn't foresee filling the beds at the facility and making the bond worthwhile as especially difficult. He noted that the current trend in crime is landing more women in prison than men on the national level. City ownership of the facility has several benefits, including the ability to increase filling beds. While GRW does not have the ability to negotiate with law enforcement and government, the city has the opportunity to enter into immediate negotiations with other government entities to offer the Brush Correctional Facility as a place for inmates. Also, while the city would own the property, GRW would manage it and assume all liability for the day-to-day operations. The City of Brush is a statutory city, as opposed to home rule, so City Attorney Bo Chapin, City Administrator Monty Torres and City Clerk Cathy Smith are looking into the legalities associated with city ownership of the facility. A quick turnaround time is required on the request, as GRW's proposal must be turned into the state by April 6, and Torres and Smith are looking to set a date for a public meeting on the issue. |
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