The Real Cost of Prisons Weblog

And changes are happening.

Cornell Companies, Inc., a private prison company, won the bid through the state Department of Corrections in 2006 to build a women's prison in Hudson. Cornell officials approached the landowner who then went through the process to annex the land. The final step is to approve it for industrial use so the facility can be built.



Racine said the land annexation will not be final until the zoning is done in May.

On May 18, approximately 360 to 400 registered residents will vote in a special election on whether to approve the land annexation for industrial-commercial or agricultural.If zoned industrial-commercial, the prison facility will be able to come to town.

"The annexation process is contingent on the zoning," Racine said. "All we've done is annexed the raw land. We've got other zoning and conditional uses to go through."

Moreland said the decision could be hard for some residents. One minute they want the facility because it will bring in projected revenue, and then the next they don't want it because of what it is -- a prison.

"It's intimidating," she said. "It's that small-town mentality. They want to see things happen, but they don't want to get involved or take any action for it."

Racine said the positive move of the prison coming to town is that it will bring the utilities into an area surrounding the town's growth area, which will make it easier to attract more business to the town of 1,587 residents. Any new business building in town must provide its own water for development, so the town would not accrue a huge expense, said Racine.

"Other than to extend the water and sewer line to an area that is currently not served," he said.

Rhonda Corman, an economics professor at the University of Northern Colorado, conducted another survey, which says the town can benefit from Cornell's presence. She determined that 147 jobs would be generated from the prison coming to town. Adding that the town could be looking at $400,000 a year from property taxes. Racine said the sales tax would be incidental because it would be based on people stopping in town to do business.

But Moreland said the town has proof it can't afford even that.

A study submitted by Harvey Economics states that the prison might actually reduce town revenues.

The study states, "On its face, the summary report of the model results indicates the 'public costs to the city' exceed the 'public revenues to the city' by more than $3.5 million for years 1-10 of the project. For instance, in year two of the project operation, estimated total costs for the town of Hudson are almost $500,000, whereas town revenues attributed to the project are only $263,000. These losses occur in every year of the project, including the year of construction."

Harvey Economics staff said the $27.5 million in economic benefits to Hudson, over the construction period and for the first 10 years, is seriously flawed. It states, "Some of the numbers are double counted like wages and expenditures of those wages. And the model assumes that 80 percent of all employee-related retail sales will occur in Hudson when only one percent of the construction workforce and 15 percent of the operational employees will live in Hudson."

After reviewing the numbers, Harvey Economics staff said the annual costs don't take into account the capital costs the town will have to pay to accommodate the new employees and the new facility. It also says the services provided in Hudson does not meet the needs of the current population, yet the town anticipates a large increase in these costs in order to provide adequate services in the future.



Overall, the study questions whether the town is capable of providing for a prison.

But the idea of a facility coming is just what officials say might improve their tiny southeastern town.

"From the town's prospective, it's a business coming to town," Racine said. "That's positive."

Moreland disagrees.



"This is not good for us," Moreland said. "People need to see the Harvey Economics study."

Moreland said she made 40 copies of the study to pass around to residents. So far, she has about 15 left but is willing to offer more copies if needed.

"Growth is coming up I-70," Moreland said. "The residents just need to wait. Positive growth will come. We don't need to accept the negative growth."

What's next?

The town of Hudson's Planning and Zoning Committee members will submit their findings from the two economic surveys to the board of trustees at the April 18 meeting.

On May 18, registered voters will decide if the annexed land should remain zoned agricultural or re-zone it industrial commercial.

About Cornell

Cornell has 79 facilities in 16 states and has a service capacity of 18,477.

All of its facilities are in compliance with federal, state and local regulations and are accredited by either the American Correctional Association or the Joint Commission of the Accreditation of Health Organizations.

In Colorado, Cornell runs the Southern Peaks Regional Treatment Center in Cañon City. It is a 160-bed staff-secure facility, and is a treatment alternative to incarceration for adolescents referred through Colorado Department of Human Services and Colorado Department of Youth Corrections with mental health and behavioral issues. The facility was built in 2004.

Source: www.cornellcompanies.com
http://www.greeleytrib.com/article/20070415/NEWS/104140151