Commissioners approve $2.5 million subsidy for private-profit East Milton prison

By Deborah Nelson
September 4, 2008

Santa Rosa taxpayers will provide $2.5 million in subsidies if a for-profit prison gets a contract to build in East Milton, County Commissioners agreed at the August 28 Commission hearing.

Discussions included a testy exchange over whether prison officials should have to answer public concerns.

The billion dollar, globally operated GEO Group, an offshoot of Wackenhut Corrections Corporation, is in the process of competing for a State prison contract.

The 2,000-bed facility would be constructed on private land, adjacent to a 160-acre county-owned tract just north of East Milton’s Industrial Park.

Several residents expressed concerns about the prospect of another prison, but commissioners disagreed on whether company officials should answer them.

East Milton resident Wilbert Courtney noted that residents were not notified of negotiations earlier. He expressed security concerns and says he fears another facility will negatively impact area property values.

“If I have another prison out there, and we have a prison break, and it happens, then who’s going to catch these prisoners?” he asked Commissioners.

“This is not one of the best things to go into a community. Have you ever had a prison go next to you and your land value go up?” Courtney added. “I don’t think so.”

“I can’t understand how you, as County Commissioners, can go ahead and support this without giving the people a chance to talk about this.

“…I know it’s going to bring jobs, yes. But if one prisoner breaks out and kills one person, is it worth it the money? I don’t think so.”

“Let’s put this in Gulf Breeze,” Courtney added. “Boy I bet the people’d be here -- you’d have this room so crowded, you couldn’t get out of it…there hasn’t been much put out on it before I saw the County Commissioners were [in favor of] it. I think if you put it in Pace there would be a big rally.”

Florida Police Benevolent Association representative Randy Romaine told Commissioners GEO Group has had to repay the State of Florida hundreds of thousands of dollars in prior overpayments.

In January 2007, the company paid $402,501 in a settlement with Florida’s Department of Management Services, according to a January 2007 St. Petersburg Times report.

“A state audit in 2005 found that over an eight-year period, Florida overpaid GEO Group and Corrections Corporation of America, based in Nashville, $4.5-million for unfilled jobs,” the report states.

A Florida Department of Law Enforcement investigation found no evidence of criminal violations related to the overpayments, according to a June 2007 FDLE press release.

Romine also questioned the decision to give away tax dollars to a billion dollar company, and told commissioners private prison turnover rates can reach 50 percent, resulting in inexperienced staff. Romine lives in Century, which also houses a State prison.

Commissioner Bob Cole asked prison officials to address the public concerns.

“We have done our research, I do not want to waste these gentlemen’s time,” Commissioner Don Salter responded.

“It’s not a waste of time,” Cole remarked.

“To rebuttal somebody who’s from Century Florida, who lives in an area where they have a large prison, obviously there’s some reasons they would be opposed, so our GEO people are on a short time schedule, this is our decision,” Salter explained.

Cole declined to object to the subsidy approval vote, but noted:

“I’d like to go on record that the citizens of Santa Rosa County are entitled to an answer to the questions even if this gentleman was from Century,” Cole added. “So, since he was from Century, I have the same questions, I’d like to pose them at this time.”

TEAM Santa Rosa and GEO group officials subsequently left the meeting, but Cole followed and reiterated his request outside Commission Chambers. GEO Group agreed, and addressed some of the prior questions.

Corrections personnel will not be deputized, said GEO Group CEO George Zoley, but security will be enforced.

“The areas around a prison are, maybe counterintuitively, much safer than any other areas,” he told the Board. “Because there’s such a large security presence around that facility."

Zoley said most escapees leave the area immediately.

“In our 15 years, we have probably had less than a handful of escapes at our three facilities,” he remarked.

GEO Group turnover is in the 20 to 30 percent, said Zoley.

“It’s particularly going down right now because of the downturn in the economy. People are looking for jobs,” he noted.

Zoley says the facility would employ corrections personnel and support staff like nurses, education and custodial personnel. Guard salaries would start “in excess of” $30,000 per year he said.

Officials say the company would invest $100 million in capital improvements to build the facility.

“That construction project would put many, many people back to work, hopefully throughout the region, but especially in Santa Rosa County,” Salter remarked.

Officials say the new facility would not compete with a planned County jail expansion to house Federal prisoners.

The Sheriff keeps temporary pre-trial detainees and illegal immigrants, say officials. The proposed new private prison would house long-term, sentenced inmates.

A new prison would not discourage other industry from locating in the Industrial Park, say TEAM Santa Rosa officials.

“In the past it’s been an attraction,” remarked TEAM Director Cindy Anderson. “Zero crime rate – how many industrial parks have a zero crime rate?”

New infrastructure associated with the project is expected to attract more business, TEAM President Ed Gray said.

The $2.46 million in subsidies includes: $1.8 million in water and sewer infrastructure to the site; a $128,779 discount on $198,122 owed in Transportation Impact Fees; $540,000 worth of sludge disposal for the City of Milton, in exchange for waiving City impact fees; and other considerations.

GEO Group CEO George Zoley declined to comment directly to the Santa Rosa Chronicle.

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