CCA PRISON Settlement removes opening obstacle

Reopening and selling the prison remain equal options, the company said.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Nothing is imminent, but a settled lawsuit makes reopening the closed private prison easier, the company says.
There are governments interested in a contract with Corrections Corporation of America to use the local prison, said Steve Owen, a company spokesman.
He couldn't give any perspective Monday, however, on how long reaching a contract might take that would bring back hundreds of workers.
The city's board of control was to approve the settlement late this morning. Council approved the deal last week and the school board is expected to approve it soon.
The settlement includes a new tax deal for the city and school system, plus requires CCA to pledge its "best efforts" to reopen the prison.
Five years ago, the school board filed the lawsuit against CCA and the city over tax breaks granted to the company. Millions of dollars were at stake.
A burden
Owen isn't sure if the lawsuit necessarily made it impossible to land a contract for the prison. Marketing the facility or selling it, however, certainly is more difficult when lawsuits are pending, he said.
"It is helpful to our ongoing efforts to remove any outstanding legal issues," he said.
Reopening and selling the prison remain equal options, Owen said. Neither is more likely than the other, he added. Any approach that gets the prison back open is a good one, he said.
City officials have indicated CCA prefers to reopen the prison, not sell. A settlement provision says CCA can sell the prison, with the city's permission, to another company that will operate the lockup.
CCA has talked with the federal government for more than a year about the prison, but there has been no progress toward a sale, Owen said. Local officials have wondered about acquiring and operating the prison, too. CCA hasn't even talked with them, Owen said.
The building remains of interest because it's only a few years old and is well designed, he said.
Ready to go
CCA is ready and willing to manage the prison again, Owen said. The facility functioned well after local staff corrected problems that, early on, resulted in several homicides and an escape, he said.
The depressed economy doesn't necessarily hurt the private prison industry, Owen said. Some governments cut back on contracts in tough financial times, which can hurt business. Nonetheless, other governments need space for inmates but don't have money to add beds in hard fiscal times. That makes private lockups attractive.
rgsmith@vindy.com