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Montana mayor's warning: Get detention center deal in writing
Thelma Grimes/San Pedro Valley News-Sun
Kim Hammond, mayor of Hardin, Mont., is warning Benson city officials to proceed with caution on Corplan Corrections' proposal to build a detention center in Benson. Corplan wants the city to build the center with bonds to be retired with federal payments for housing illegal immigrants.
Hammond has first-hand knowledge of what it feels like to be promised economic growth and get excited about job creation only to have a $27-million facility sit empty for three years while the bonds the city sponsored go into default.
"My advice to any town considering something like this would be to get everything in writing first," Hammond said.
Hardin signed off on $27 million in revenue bonds to fund the construction of a 200-bed center that was supposed to house women and children awaiting asylum, deportation or court.
The facility was built in 2007 but remains empty. With nothing in writing, the federal government never agreed to keep illegal immigrants at the facility, and the city has been unable to sign a contract with other agencies to fill it.
Now, Hammond said, the city has won a lawsuit against the state to gain complete control over who can be kept at the prison, but with no money to staff it, it will still sit empty, costing the city more money.
One of the key developers involved in the Hardin project was James Parkey, of Texas-based Corplan Corrections.
Parkey has also approached Benson city officials about building a similar detention center near the Benson Municipal Airport, which is being called a "Family Residential Center of the Southwest."
Corplan Corrections is promising the creation of 150 jobs and a new revenue stream to the city when federal funds come rolling in to pay a per diem for the immigrant families staying at the 104,000-square-foot facility.
To avoid breaking open meeting laws, the detention center developers have held several meetings with three council members at a time.
Six of the council members have met with them, and Vice Mayor Toney King said he was happy he had to work when the meeting was scheduled because he didn't want to hear the sales pitch.
"The bottom line is, before we jump in we need to do more research and talk to others," he said. "We can't just hear there are going to be more jobs and think this is a good idea. We have to really look at who we are dealing with, and not just jump in and say yes. We have to take baby steps here."
Councilwoman Jo Deen Boncquet, along with several other council members, promised they won't jump into anything without doing more research.
But the prospect of more jobs and city revenue has some council members seeing dollar signs. Mayor Mark Fenn said several times in his first public address regarding the issue on March 8, that a detention center would bring jobs to town.
Boncquet said the facility would bring an added $218,000 a year.
"I want to make it clear that I have not made any real decisions on this proposal and will not until all the research has been done," she said. "But the money is not the only consideration with this proposal. I think it is really premature to really make any other comments regarding this proposal until we have all the information."
Councilman David Lambert said there are a lot of pros and cons in a detention center's coming to Benson.
"The developers have made their initial pitch; now we have to decide how to play ball," he said. "Do we bunt, and take our chances at a slow pace, or swing hard and hang on. There are so many loopholes to fall into if we proceeded too fast. At this time, knowledge is key. So it is difficult to imagine a right or wrong way to go."
Lambert said there is no doubt that the major benefit of such a facility is job creation.
"At the current unemployment rates, the economy has no chance of a full recovery. Any job at the present time is better than the alternative. (Gov. Jan Brewer) has stated the state budget issues have no real end in sight. She seems to be putting all of the state's eggs into one basket ...a one-cent sales tax in May. So how long will unemployment insurance last?"
Councilman Al Sacco was less excited about the proposal.
"I am concerned about this group bowing out before the 20 years is even up," he said. "Then, the prison is going to end up becoming a facility that houses hard criminals. I'm all for creating jobs, but what about security?"
Sacco questioned Corplan Corrections' continuous claims that the 25-acre facility is not a detention center or prison, but instead a family holding center for undocumented immigrants.
Sacco said the salesman stated the chain-link fence is only needed to keep others from entering the facility.
The people in the facility, however, will be held against their will.
Sacco, along with King, was more pessimistic about all the good things Corplan Corrections is promising the city.
"To be honest, I am not on board with it, and I was one that voted against the same thing six years ago," King said.
The same group proposing the current family center tried to bring a 500-bed detention center to Benson six years ago. They proposed building it on State Route 80, but they were defeated by strong opposition from residents.
Sacco said with no guarantees, and this being the same company, there are many questions that have to be answered before he would vote for such a high-stakes proposal.
Councilwoman Lori McGoffin said she had a conflict of interest in discussing the project since Corplan Corrections has offered to contract with her employer, the Medicine Shoppe, to provide residents with pharmaceutical supplies.
McGoffin did say that if Corplan Corrections is a legitimate company that can make good on all their offers, it is a prospect worth considering. If they are not, the city needs to disregard the matter entirely and move on.
For Benson to land the proposed facility, the city will have to sponsor $21 million in high-risk revenue bonds.
Since the city cannot legally fund such a venture, they would appoint a board, similar to that formed when the wastewater treatment facility needed to be expanded.
City Manager Glenn Nichols has already offered the council some insight. Each council member was given a packet that included studies on private companies such as Corplan Corrections' building detention centers in small communities.
The studies show small communities rarely benefit in the end, and the private prisons fail to meet federal standards.
Kim Hammond, mayor of Hardin, Mont., is warning Benson city officials to proceed with caution on Corplan Corrections' proposal to build a detention center in Benson. Corplan wants the city to build the center with bonds to be retired with federal payments for housing illegal immigrants.
Hammond has first-hand knowledge of what it feels like to be promised economic growth and get excited about job creation only to have a $27-million facility sit empty for three years while the bonds the city sponsored go into default.
"My advice to any town considering something like this would be to get everything in writing first," Hammond said.
Hardin signed off on $27 million in revenue bonds to fund the construction of a 200-bed center that was supposed to house women and children awaiting asylum, deportation or court.
The facility was built in 2007 but remains empty. With nothing in writing, the federal government never agreed to keep illegal immigrants at the facility, and the city has been unable to sign a contract with other agencies to fill it.
Now, Hammond said, the city has won a lawsuit against the state to gain complete control over who can be kept at the prison, but with no money to staff it, it will still sit empty, costing the city more money.
One of the key developers involved in the Hardin project was James Parkey, of Texas-based Corplan Corrections.
Parkey has also approached Benson city officials about building a similar detention center near the Benson Municipal Airport, which is being called a "Family Residential Center of the Southwest."
Corplan Corrections is promising the creation of 150 jobs and a new revenue stream to the city when federal funds come rolling in to pay a per diem for the immigrant families staying at the 104,000-square-foot facility.
To avoid breaking open meeting laws, the detention center developers have held several meetings with three council members at a time.
Six of the council members have met with them, and Vice Mayor Toney King said he was happy he had to work when the meeting was scheduled because he didn't want to hear the sales pitch.
"The bottom line is, before we jump in we need to do more research and talk to others," he said. "We can't just hear there are going to be more jobs and think this is a good idea. We have to really look at who we are dealing with, and not just jump in and say yes. We have to take baby steps here."
Councilwoman Jo Deen Boncquet, along with several other council members, promised they won't jump into anything without doing more research.
But the prospect of more jobs and city revenue has some council members seeing dollar signs. Mayor Mark Fenn said several times in his first public address regarding the issue on March 8, that a detention center would bring jobs to town.
Boncquet said the facility would bring an added $218,000 a year.
"I want to make it clear that I have not made any real decisions on this proposal and will not until all the research has been done," she said. "But the money is not the only consideration with this proposal. I think it is really premature to really make any other comments regarding this proposal until we have all the information."
Councilman David Lambert said there are a lot of pros and cons in a detention center's coming to Benson.
"The developers have made their initial pitch; now we have to decide how to play ball," he said. "Do we bunt, and take our chances at a slow pace, or swing hard and hang on. There are so many loopholes to fall into if we proceeded too fast. At this time, knowledge is key. So it is difficult to imagine a right or wrong way to go."
Lambert said there is no doubt that the major benefit of such a facility is job creation.
"At the current unemployment rates, the economy has no chance of a full recovery. Any job at the present time is better than the alternative. (Gov. Jan Brewer) has stated the state budget issues have no real end in sight. She seems to be putting all of the state's eggs into one basket ...a one-cent sales tax in May. So how long will unemployment insurance last?"
Councilman Al Sacco was less excited about the proposal.
"I am concerned about this group bowing out before the 20 years is even up," he said. "Then, the prison is going to end up becoming a facility that houses hard criminals. I'm all for creating jobs, but what about security?"
Sacco questioned Corplan Corrections' continuous claims that the 25-acre facility is not a detention center or prison, but instead a family holding center for undocumented immigrants.
Sacco said the salesman stated the chain-link fence is only needed to keep others from entering the facility.
The people in the facility, however, will be held against their will.
Sacco, along with King, was more pessimistic about all the good things Corplan Corrections is promising the city.
"To be honest, I am not on board with it, and I was one that voted against the same thing six years ago," King said.
The same group proposing the current family center tried to bring a 500-bed detention center to Benson six years ago. They proposed building it on State Route 80, but they were defeated by strong opposition from residents.
Sacco said with no guarantees, and this being the same company, there are many questions that have to be answered before he would vote for such a high-stakes proposal.
Councilwoman Lori McGoffin said she had a conflict of interest in discussing the project since Corplan Corrections has offered to contract with her employer, the Medicine Shoppe, to provide residents with pharmaceutical supplies.
McGoffin did say that if Corplan Corrections is a legitimate company that can make good on all their offers, it is a prospect worth considering. If they are not, the city needs to disregard the matter entirely and move on.
For Benson to land the proposed facility, the city will have to sponsor $21 million in high-risk revenue bonds.
Since the city cannot legally fund such a venture, they would appoint a board, similar to that formed when the wastewater treatment facility needed to be expanded.
City Manager Glenn Nichols has already offered the council some insight. Each council member was given a packet that included studies on private companies such as Corplan Corrections' building detention centers in small communities.
The studies show small communities rarely benefit in the end, and the private prisons fail to meet federal standards.
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Reader Comments
The following are comments from the readers. In no way do they represent the view of bensonnews-sun.com.
Bemused wrote on Mar 17, 2010 11:37 AM:
" "My advice to any town considering something like this would be to get everything in writing first," Hammond said.
WELL, DUH!!!!
If this government is so dumb that they will act on a hand shake I may have a proposal of my own to submit. "
WELL, DUH!!!!
If this government is so dumb that they will act on a hand shake I may have a proposal of my own to submit. "
This is insane wrote on Mar 17, 2010 11:56 AM:
" "now we have to decide how to play ball," he said. "Do we bunt, and take our chances at a slow pace, or swing hard and hang on."
Um, maybe you should forfeit "the game" and get out now. "
Um, maybe you should forfeit "the game" and get out now. "
Ron wrote on Mar 17, 2010 1:45 PM:
" Someone should call Homeland Security to find out if there is a program for housing women and children aliens. I hear they are shipping them back to their county of origin as soon as possible. Then what would the need be of having such a facility? If the Feds are paying Corplan to house these people, then there should be a program that administers it. If Corplan doesn't have a contract to do it, then it is a sure bet this project will fail. "
Don Looney wrote on Mar 17, 2010 5:14 PM:
" Here we go again! The only entity that can sign a contract with the City to house illegal aliens whether the detainees are family units, single males, etc is the US Gov't. These private entities unless they have an existing contract with a federal agency cannot guarantee any city that "if they build..the money or detainees will come". Six years ago I volunteered to help the City if they wanted a legitimate detention facility to house aliens since for over 30 years I worked for INS and developed the majority of detention facilities in the U.S. There are legitimate private companies that have existing State and U.S. Gov't contracts that can be of assistence in an emergency situation. Normally however the U.S. Gov't is required to go through a complete
bidding process. The Gov't can contract with a public entity (like the City) without the bidding process but that's between the City and the U.S. Gov't ..no private company is or can be involved. Don't get me wrong a well built, well managed detention facility can be a boom to the local economy and provide good jobs for the locals. I know in Florence, Az it allows young adults to stay in the community where they were raised and promote the health and welfare of a small Az town. I also hope you will heed the warning of the mayor from Montana. There are also similiar cases in Texas where the City or the County was left holding the "bag". I don't recognize this company or know anything about them but from what is being stated in the press they are leading you down the rose path to a cactus garden!
Don Looney
Cascabel. Az "
bidding process. The Gov't can contract with a public entity (like the City) without the bidding process but that's between the City and the U.S. Gov't ..no private company is or can be involved. Don't get me wrong a well built, well managed detention facility can be a boom to the local economy and provide good jobs for the locals. I know in Florence, Az it allows young adults to stay in the community where they were raised and promote the health and welfare of a small Az town. I also hope you will heed the warning of the mayor from Montana. There are also similiar cases in Texas where the City or the County was left holding the "bag". I don't recognize this company or know anything about them but from what is being stated in the press they are leading you down the rose path to a cactus garden!
Don Looney
Cascabel. Az "
Nana wrote on Mar 18, 2010 1:20 PM:
" History of Benson's appointed boards for issuing high risk bonds:
When the city appointed a board for improving the waste water treatment plant, a sales tax increase was also imposed. That tax increase went into the general fund and was NEVER earmarked for treatment plant expenses. That tax is still in place to this day. Law suits went on for years. Due to improper construction the plant had to be rebuilt again in a few years. By the way, the board appointed by the council consisted mostly of council members at the time. Does Benson need yet another un-designated tax hike? "
When the city appointed a board for improving the waste water treatment plant, a sales tax increase was also imposed. That tax increase went into the general fund and was NEVER earmarked for treatment plant expenses. That tax is still in place to this day. Law suits went on for years. Due to improper construction the plant had to be rebuilt again in a few years. By the way, the board appointed by the council consisted mostly of council members at the time. Does Benson need yet another un-designated tax hike? "
Pancho wrote on Mar 18, 2010 8:14 PM:
" These guys are the same ones trying to sell Las Cruces, NM, on their latest scam. If you want to see how bad they can be, besides Hardin, check out what they did in Willacy County, Texas.
No one gets rich but them. They make millions off the top, leaving towns in worse shape than they arrived.
They not only don't have a contract, but there won't be a contract for anyone, anywhere, to do "family detention." It's all a lot of hokum. Hopefully Benson officials won't be taken in. "
No one gets rich but them. They make millions off the top, leaving towns in worse shape than they arrived.
They not only don't have a contract, but there won't be a contract for anyone, anywhere, to do "family detention." It's all a lot of hokum. Hopefully Benson officials won't be taken in. "
Tommy B wrote on Mar 17, 2010 10:51 AM:
Next to the airport, the wastewater treatment facility was the largest give a way to contractors in the city’s history. If it involves building, Fenn is for it. "