PRESCOTT VALLEY - A proposed private prison with 5,000 beds will be an economic boon by creating thousands of jobs during construction and operations and generating tax revenues, according to a Scottsdale-based economist.
Elliott D. Pollack & Co. projected construction for the proposed prison would create 3,945 direct, indirect and "induced" jobs with $172.2 million in wages and a total economic effect of $469.9 million during the construction period. Construction alone would cost $300 million, according to the report.
Once the prison opens, it will create 885 direct jobs, and 425 direct and induced ones with $49.3 million in wages, Pollack stated in the report. The annual economic output would be $109.3 million.
Indirect jobs refers to employment that businesses create when they provide goods and services for operating the prison, and include manufacturers and wholesalers, Pollack explained in a 12-page economic analysis released Monday. The spending of wages on goods and services from direct and indirect jobs in turn creates induced jobs.
The private prison also would generate $25.2 million a year for state, county and local governments during construction, and exceed $7.9 million a year in revenues from operations, Pollack's report states.
Pollack produced the report for the Prescott Valley Economic Development Foundation, which has held talks with Corrections Corporation of America to build a private prison off Fain Road near the Grapevine Industrial Park. He based construction estimates, job and inmate figures, taxable corporate income and an estimated utility budget on information that CCA supplied.
Pollack staffers are scheduled to speak about the report during a meeting of the Town Council Thursday evening.
"I think it is very impressive," foundation Executive Director Gary Marks said.
Marks issued a press release Dec. 17 in which he stated the prison would create 400 full-time jobs. He and other business and civic leaders met that day with a CCA official.
CCA would create more full-time jobs because Marks based that figure on a prison with 1,000 to 1,200 beds - not 5,000 - CCA spokeswoman Louise Grant said.
"If CCA were to submit a proposal to build a 5,000-bed prison, that would mean more than 800 stable careers for locally hired people from Yavapai County," Grant said.
Grant noted the state government has not issued the request for proposals (RFP) from prison companies to house a maximum of 5,000 inmates. The state could award 20-year contracts to CCA or other companies to house the inmates at existing prisons, new prisons or both.
She also said CCA, which operates four prisons in Eloy and two in Florence, likely would hire an outside general contractor because a prison requires specialized construction skills. She added CCA cannot guarantee that it will hire local subcontractors or recruit employees strictly from the tri-city area, which has an official unemployment rate of 9.3 percent.
"We always make every commitment to hire local subcontractors," Grant said. "Our culture and commitment is to hire as many (people) locally as possible."
Grant spoke hypothetically because her company awaits a decision from the state.
Pollack qualified its report as well.
"The analysis outlined in this study is based on currently available information and estimates and assumptions about long-term future trends," the report states. "Such estimates and assumptions are subject to uncertainty and variation. Accordingly, we do not represent that the results will be achieved."
The analysis also does not consider costs associated with providing services to the prison, the report stated.
Reader Comments
Posted: Thursday, January 28, 2010
Article comment by:
No name provided
Love how everyone is so quick to say "no prison" but they have no alternate solution. It's easy to say "no" and be close-minded about something without offering up something better.
As for the "for the people, by the people" comments, but isn't our local government elected to office "by the people?" And is it not their charge to do their best "for the people?" That doesn't always mean it's the most popular thing to do. Let's say, for argument's sake, there are more people out there who don't want the prison than those who do. I'm pretty sure there are more people in America who don't want to pay taxes, either. But the government has to have them to pay for the things we need, like roads, public health, etc. Same thing here. Our town council needs to do what's best for all of us, not just the vocal ones. Some may not like it, but I don't think it's going to be the doom and gloom so many are spouting.
Posted: Thursday, January 28, 2010
Article comment by:
Tom Steele
Hey "get over it"; you too will retire some day. Did you lose your construction related job? Well, your old job was probably due to a hated retiree from outside the state buying a home here. Get over it! Push the AZ legislature to reduce the massive taxes on industry. Then we can get sustainable and good paying jobs for you and others unemployed. This will also preserve our dwindling water supply as every three homes requires another acre foot of water; forever!
Think about that. This information brought to you by a 71 year old retiree from California.
Posted: Thursday, January 28, 2010
Article comment by:
No name provided
The construction contract goes to national firms qualified to build detention centers. Those firms bring their own subcontractors who also have the same experience. The town staff plans on giving away the infrastructure so they can sell the regions resources to an out of state business enterprise. The expenses come out of the pockets of the citizens. In the Nashville Business Journal, Hininger (CEO of CCA) said CCA "can build a prison in a fraction of the time and for half the cost of government by taking advantage of market conditions. For example, he said the company recently built a prison for its largest state customer, California, in Arizona to take advantage of lower construction, labor and real estate prices in that state." Yeah, that's just the kind of spirit and motivation that great relationships are built on. Glad we were able to help you increase profits at our expense. Better hurry and take more advantage while were still down.
Posted: Thursday, January 28, 2010
Article comment by:
freedom writer
Oh, just look at the money that will soon be rolling in -- at what cost? Who do you think pays to keep human beings in prison? Can you spell TAXPAYER? But when schools close on Fridays and there's no place for your kid to go because after-school programs are discontinued and the libraries and parks are closed for lack of funding, it's your kids who will pay for your short-sightedness.
Posted: Thursday, January 28, 2010
Article comment by:
No name provided
I DON'T THINK SO, Most of us retired people's homes are paid for. You're right about not making a profit on them because of the economy. Add a prison to that, and stand by to really lose money. I myself have seriously considered putting my house up for sale before this prison debacle goes any further. Truly, it is your rationale, that doesn't add up, or down. Please quit trying to do damage control, and thinking for other people. People that are in danger of losing their homes right now, will not be helped at all by a prison.
Posted: Wednesday, January 27, 2010
Article comment by:
I don't think so
"I will not be able to sell my home and make any kind of profit." Ahh, Sharon, I don't think you'll be able to sell your home and make a profit regardless of whether or not a prison is built. It is called a "recession" and "the real estate market bubble has burst" for really good reasons. "I drove home tonight and 3 of my neighbors have listed their homes for sale in hopes they can sell before the prison comes." I seriously doubt your neighbors put their homes on the market just because there MIGHT be a prison built in the area. More likely they have put them on the market because they can't find jobs (even 2-3 part time jobs) so they can make the payments. Your rational just doesn't add up Sharon. Sorry.
Posted: Wednesday, January 27, 2010
Article comment by:
No name provided
MARK, exactly what power do you have other than the right to vote?
Posted: Wednesday, January 27, 2010
Article comment by:
No name provided
INCARCERATING PEOPLE "FOR PROFIT" IS IN A WORD....WRONG! Even if one does not ask or pretends not to see the rope and the flashing red flag draped around the philosophical question standing solemnly at attention in the middle of the room, it remains apparent that the mere presence of a private “for profit” driven prison business in our country undermines the U.S Constitution and subsequently the credibility of the American criminal justice system. In fact, until all private prisons in America have been abolished and outlawed, “the promise” of fairness and justice at every level of this country’s judicial system will remain unattainable. We must restore the principles and the vacant promise of our judicial system. Our government cannot continue to "job-out" its obligation and neglect its duty to the individuals confined in the correctional and rehabilitation facilities throughout this nation, nor can it ignore the will of the people that it was designed to serve and protect. There is urgent need for the good people of this country to emerge from the shadows of indifference, apathy, cynicism, fear, and those other dark places that we migrate to when we are overwhelmed by frustration and the loss of hope. ...
Posted: Wednesday, January 27, 2010
Article comment by:
Christopher J. Kraft
Gail you are absolutely correct. The cement plant is in Drake. The county should really try and steal this from the Fains and start their own negotiations. Somebody mentioned getting the jobs in writing. I agree 100% there should be penalties for jobs not delivered and local contractors not hired. An apparently like Peublo Colo. a commitment to years in the community. If they pack up and leave we have to look at the eyesore.
Posted: Wednesday, January 27, 2010
Article comment by:
Gail
To Christopher J. Kraft: Funny thing about your suggestion of building the prison next to the cement plant! I think that’s actually in the town of Drake. And Drake has already said they will take the prison. I agree with you and just think no schools, no seniors, no families and neighbor town to be adversely affected by it. The prisoners even have a place for work release. To top that off anyone that lives in Prescott Valley that really thinks this prison will hire them can drive there in a short amount of time. Every one wins!
Posted: Wednesday, January 27, 2010
Article comment by:
Mark
I will do everything in my power to ALLOW the prison to be built. I want the prison and so does my entire family and friends. We will all join together to push for the prison so that it WILL get built.
Posted: Wednesday, January 27, 2010
Article comment by:
Ann
Please don't, I don't think this is what our community needs. Lets work to make our area desireable for other kinds of businesses.
Posted: Wednesday, January 27, 2010
Article comment by:
TOTALLY DISGUSTED WITH THE LOCAL OFFICIALS
I AM NOT RETIRED AND I DO NOT WANT A PRISON IN THE TRI-CITY AREA. I SAY PUT IT IN ASHFORK!!!!!
Posted: Wednesday, January 27, 2010
Article comment by:
No name provided
So... Gary Marks is "impressed" by the CCA presentation? God help us, and we pay the EDC $244,000 A YEAR? I'll take the job FOR FREE... if within 6 months I have not done better than Marks, no loss - only pay me if I can actually bring in a REAL BUSINESS!!!
Posted: Wednesday, January 27, 2010
Article comment by:
Sharon
I have lived in Prescott Valley since 1984 and have 10 house payments left and now the town is trying to shove a prison down everyone's throat. I worked for DES Job Service for 7 years and assisted with bringing Red Lobster, Costco, and many other companies to the area and found that the jobs that were offered to the residents were NOT full-time positions, but part-time positions and upper management positions were always filled with employees from out of town, not locals. I have worked hard, many times holding part time jobs to make ends meet. Now the Town of Prescott Valley is proposing a prison right outside my back door and I risk losing everything I have worked for. I will not be able to sell my home and make any kind of profit. I drove home tonight and 3 of my neighbors have listed their homes for sale in hopes they can sell before the prison comes. What alot of people don't seem to understand is it is not only going to affect Prescott Valley but also the surrounding areas. How many newcomers want to purchase a $500,000 home in Prescott when they find out a prison is only 15 miles or so away from them. If Prescott Valley doesn't annex the property that is in Yavapai County jurisdiction then the prison will approach Yavapai County for a Use Permit to allow it anyways. A Use Permit is reviewed by the Planning and Zoning Commission and then reviewed by the County Board of Supervisors for approval. .... it may happen even if the Town of Prescott Valley doesn't annex the property. The tri-city area residents need to start writing and calling the County Board of Supervisors, Carol Springer and Tom Thurman and let them know we do not want a prison in the area. What will Prescott's Home Town be called then? You need to stand up and let them know how you feel. I DO NOT WANT A PRISON IN THE AREA, NO IF'S, ANDS, OR BUTS. NO, NO, NO, NO, PRISON IN THE AREA!!!!!!!!!!
Posted: Wednesday, January 27, 2010
Article comment by:
Get over it
"are there "800" people in this town or tri-city area that can pass the back ground check?" Ryan, you ask this question and then worry about what it will do to the local population if there is a prison in this area? You're kidding, right? Please tell me you are -- Otherwise one has to believe there aren't 800 people in the tri-city area that can pass a background check, BUT THE LOCAL RETIREES ARE WORRIED ABOUT THE INMATES WHO WILL BE BEHIND BARS!! It is nothing but ridiculous. Do so many of these posters truly believe any inmate being released will stay in the area. (Check the statics before you answer -- most, if not all leave. Even if it means having your parole time transfered.) And do you really believe families pull up stakes and move to an area if they have a family member doing time in a prison? (Once again, yeah better check your statistics before answering.) Personally I wish everyone who wasn't a retiree would leave the PV area. Think how much fun it would be to watch the retirees try and function without basic services -- gee, this isn't rocket science. People need jobs, and retirees don't spend enough money to make an economy strong.
Posted: Wednesday, January 27, 2010
Article comment by:
Christopher J. Kraft
Shayne Durrance is on the right track with how to look at this. How will it impact home values? How many jobs will not be gained by the prison being here? How many future companies will pass on P.V. because of the prison? I grew up next to Attica in New York and I can tell you that town is definately not the first choice for businesses looking to relocate. Yeah lets build a warehouse next to Attica. Labeling can be everything and I don't think you want to have the label of being a prison town. The county should jump in and sweep it away from the Fains and build the prison next to that awesome job creating cement plant in Paulden. The inmates can breathe in that dusty air and be kept up all night by the noise. If they do escape they have no where to run to.
Posted: Wednesday, January 27, 2010
Article comment by:
A disillusioned newcomer
Please folks - read between the lines here; I'm from Florida, and a few years back the Lottery wanted to come to town,despite pressure from the locals to go somewhere else; well, they promised that half of their profit would go to the schools, and guess what, we all voted YES! Problem? They never mentioned that that State and Federal monies would be reduced by the amount the lottery would provide! Bottom line, Florida schools are in the same shape they were before; and...Do you think anybody likes looking at billboards and signs EVERYWHERE announcing "Play Florida Lottery!" You can gamble anywhere in town, too.
Posted: Wednesday, January 27, 2010
Article comment by:
No name provided
Sunshine, the propaganda I saw, said the proposed prison will be Max security . These are murders, robbers, rapists, and prison dicipline problems. Just what we need eehhh. Not to mention their friends and families. It comes I go.
Posted: Wednesday, January 27, 2010
Article comment by:
tom
To the ones who say build it in Chino. All you got to do is get your town to offer free water and sewer lines to the prison. CCA is only interested in paying low wages and getting the tax payer to help pay for there prisons.
To the ones who say we need jobs the armed forces is hiring. Go to the day labor and temp agency's I know a lot of people who have gotten permanent jobs by working though there agency's. Most employers prefer this. That way they can say do not come back to the ones who do not want to work. Most only pay $8.00 per hour but it is a job. So get off your butts and help yourself. Even if they build it jobs are still a year away before they break ground. Then two years for jobs within the prison. So no quick fix as to jobs. Do not be fooled by the promise of jobs.
Posted: Wednesday, January 27, 2010
Article comment by:
Sunshine
They say the prison will be low to medium security. OMG! an influx of white collar criminals and potheads!!! Whatever shall we do? Make sure that it stays that way and there shouldn't be a problem like "inherent crime". And if you think that building a prison will bring an influx of ne'er do wells, and you also think that the locals who need a job can't pass the background check,well, it seems to me the unsavory types are ALREADY THERE. Do you know what drives property values either up or down? Peoples' perception of them. Do you know what drives the stock market either up or down? Speculation. I'm not going to fill in the blanks here, if all you naysayers are as smart as you think you are, you'll be able to put 1 and 1 together. You're making your own downfall by assuming that evrything that could possibly go wrong will. With negative thinking like that, you don't need a prison in town to lower your quality of life. You're doing a good enough job of it on your own. No wonder they call it "Prescott Valium"
Posted: Wednesday, January 27, 2010
Article comment by:
No name provided
To "Jailers, Jailers everywhere!”, are you jealous of Detention Officers and that PROFESION? You could be a Detention Officer too, but you first have to pass the rigorous hiring process and then complete the training.
Posted: Wednesday, January 27, 2010
Article comment by:
Thurston Howell III
Right on! A prison in PV!! Now PV residents won't have far to go when they are convicted and relatives are close by. We're gonna need accomodations in Chino tho for dog violators. Can we possibly make Prescott a gated community?
Posted: Wednesday, January 27, 2010
Article comment by:
No name provided
Put it to a vote, thats all they have to do.
Posted: Wednesday, January 27, 2010
Article comment by:
Build it in Chino!
Dear leaders of Chino Valley: When Prescott Valley passes on this prison because they listen to the "Chicken Little’s" who squawk the sky is falling in packed council meetings; pick up the ball and run with it. Build the prison on some of the 69.4 square miles of Town land currently only occupied by cattle. Bring the jobs to Chino Valley!
