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HomeMy WebLinkAbout20101627 rctte0 CLERK TO THE BOARD PHONE (970) 336-7215, Ext. 4226 FAX: (970) 352-0242 P. O BOX BOX 75858 GREELEY, COLORADO 80632 COLORADO July 29, 2010 INLAND PPD HUDSON ASSOCIATES LLC 211 E 7TH STREET SUITE 1120 AUSTIN, TX 78701 RE: THE BOARD OF EQUALIZATION, 2010, WELD COUNTY, COLORADO - DENY PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE DESCRIPTION OF PROPERTY:ACCOUNT#: R6775763 PARCEL#: 130726201002-L2 SAND HILLS INDUSTRIAL PARK Dear Petitioner: On July 28, 2010,the Board of County Commissioners of Weld County, Colorado,convened, and acting as the Board of Equalization, pursuant to Section 39-8-101, C.R.S., et.seq., considered your petition of appeal of the County Assessor's valuation of your property described above,for the year 2010. The Board of Equalization found that the evidence presented at the hearing clearly supported the value placed upon your above described property by the County Assessor. Such evidence indicated the value was reasonable, equitable, and derived according to the methodologies, percentages, figures and formulas dictated to the Weld County Assessor by law. The assessment and valuation of the Weld County Assessor was affirmed as follows: ACTUAL VALUE AS ACTUAL VALUE AS DETERMINED BY SET BY BOARD • ASSESSOR $61,914,792 $61,914,792 CC'.`C�9� PErOei/er) 2010-1627 /95- Ccurt/ley v- c7T4ek;E 7/ fae/e AS0076 INLAND PPD HUDSON ASSOCIATES LLC - R6775763 Page 2 A denial of a petition, in whole or in part, by the Board of Equalization may be appealed by selecting one of the following three options; however, said appeal must be filed within 30 days of the denial: 1. Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's (CBOE's)decision to the Board of Assessment Appeals (BAA). Such hearing is the final hearing at which testimony, exhibits, or any other evidence may be introduced. If the decision of the BAA is further appealed to the Court of Appeals, only the record created at the BAA hearing shall be the basis for the Court's decision. No new evidence can be introduced at the Court of Appeals. (Section 39-8-108(10), C.R.S.) Appeals to the BAA must be made on forms furnished by the BAA, and such appeals should be mailed or delivered within thirty (30) days of denial by the CBOE to: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 Phone: 303-866-5880 Fees: A taxpayer representing himself is not charged for the first two appeals to the Board of Assessment Appeals; however,a taxpayer being represented by an agent or an attorney must submit a fee of$101.25 per appeal. OR 2. District Court: You have the right to appeal the CBOE's decision to the District Court of the county wherein your property is located. New testimony,exhibits or any other evidence may be introduced at the District Court hearing. For filing requirements, please contact your attorney or the Clerk of the District Court. Further appeal of the District Court's decision is made to the Court of Appeals for a review of the record. (Section 39-8-108(1), C.R.S.) OR 3. Binding Arbitration: You have the right to submit your case to arbitration. If you choose this option the arbitrator's decision is final and your right to appeal your current valuation ends. (Section 39-8-108.5, C.R.S.) Selecting the Arbitrator: In order to pursue arbitration, you must notify the CBOE of your intent. You and the CBOE select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator,the District Court of the county in which the property is located will make the selection. Arbitration Hearing Procedure: Arbitration hearings are held within sixty days from the date the arbitrator is selected. Both you and the CBOE are entitled to participate. The hearings are informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records, documents and other evidence. He 2010-1627 AS0076 INLAND PPD HUDSON ASSOCIATES LLC - R6775763 Page 3 also has the power to administer oaths, and all questions of law and fact shall be determined by him. The arbitration hearing may be confidential and closed to the public, upon mutual agreement. The arbitrator's written decision must be delivered to both parties personally or by registered mail within ten (10) days of the hearing. Such decision is final and not subject to review. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the CBOE. In the case of residential real property, such fees and expenses cannot exceed$150.00 per case. The arbitrator's fees and expenses, not including counsel fees, are to be paid as provided in the decision. If you have questions or need additional information, please do not hesitate to contact me at (970) 336-7215, Extension 4226. Very truly yours, Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor CORNELL CORRECTIONS OF CALIFORNIA CORNELL COMPANIES INC - BRUCE BROWN 1700 W LOOP SUITE 1500 HOUSTON, TX 77027 2010-1627 AS0076 BOE SUMMARY SHEET Account Number: R6775763 Parcel Number: 130726201002 INLAND PPD HUDSON ASSOCIATES LLC 211 E 7TH STREET SUITE 1120 AUSTIN, TX 78701 HEARING DATE: 7/28/2010, AT 2:30 PM HEARING ATTENDED? 6N) NAME: Q j2&Le ��� �� AGENT NAME : CORNELL CORRECTIONS OF CALIFORNIA ORNIA X4(1 ` CORNELL COMPANIES INC - BRUCE BROWN 1700 W LOOP SUITE 1500 ��� ✓r. HOUSTON, TX 77027 APPRAISER NAME: CCJ � )t DECISION ACTUAL VALUATION APPROVE BY SET BY ASSESSOR BOARD TOTAL ACTUAL VALUE 61,914,792 �/ 9r/ Val / COMMENTS: MOTION BY .DL TO SECONDED BY 4( Garcia -- Rademacher- ) Failed to prove appropriate value Conway- i No comparables given Kirkmeyer-- N Assessor's value upheld Long - (Y ) Other: RESOLUTION NO. 2010-1627 M:\BOE\SUMMARY.dofx Weld Count CHRISTOPHER M. WOODRUFF COUNTY ASSESSOI BRENDA DONES, DEPUTY ASSESSO VALUATION REPORT OF COMMERCIAL PROPERTY FOR County Board of Equalization INLAND PPD HUDSON ASSOCIATES LLC PETITIONER vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Parcel Number: 1307-26-2-01-002 Schedule Number: R6775763 Log Number: 2850 Date: 07/28/10 Time: 2:30 pm Board: Board # PREPARED BY CHARLES JACK Signature Date Signature Date ASSESSOR'S OFFICE STAFF APPRAISER ,20/0-- /6.27 CBOE_COMM_01i Pa SALIENT FACTS AND CONCLUSIONS Purpose of Appraisal To determine Market Value as of 1/1/10 based on an appraisal date of 6/30/08. Property Rights Appraised Unencumbered fee simple interest. Location 3001 N JUNIPER ST HUDSON Land Area 2,211,736 Square Feet Property Type Commercial Correctional Facility Year Built 2009 Quality Good Class Masonry Number of Stories 2 Improvement Sq. Ft. Four housing living units — 228,608 sq ft Administration/medical/support — 54,308 sq ft Gatehouse — 1,600 sq ft Storage warehouse — 7,500 sq ft Gymnasium — 8,000 sq ft Total Area - 300,016 sq ft Value Indications: Land $2,211,737 Cost Approach $61,914,792 Market Approach n/a Income Approach $65,156,118 Final Value $61 ,914,792 CBOE_COMM_O1i Pa _ '�• l•Sr " • r • :, - r l 1 , , t . -40 1 N...• ti- �� _ • 03 / 23 / 2009 ri.i H F : G • E D • B - ; le 1 I • • _ I - . - L �, SITE te'PLAN I I • 03 / 23 / 2009 E_COMM_01 C Pac • a I L lb I = i • _-.. - --- t .. ... _ •.. . . a - - - . III lit• Yf� •w wr• s - I 1 f .. r,a.m.— _ , - 1 -- - -- — _- -- �-:: = / / / / / / - AL I ♦ t __ __ / -/ / / ./e. / V / 1 -t 1- -Ni.- _ . ._ - ua.>F•r.._ - - ^. .- _ �-----ogY•'.�+rei• . tJ' _ ���•. �� _ . _ _._ :=il Vie.. ,r.' r.�- • . -... 00150YOM. L....42 • ' - ..:,..-•irs,::"kCi;* . , • wto /1)9 / 200 . . •• 4 4. .11. 1 •0 ' - • f.' Y a� lam /. .•.a% �i�,.• i t fG i. 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'id_ �'L•_ + •--•.. _ • —.•-• .. w .1�1•Is_•}'T 4f.' e - CBOE_COMM_01 C Pac . #0.** 4# 4#4 4 ,..-. ......- , ,, ,, -, r ' , V le 10 Alki. .4441.111,11"441k :I 4# ..!;.:V.t. .i..??1 :_.'- '. ` %\.' . . . • . . Sitper ,‘.. .. . . .. , . , _ ., , 4.4* •�. .. mss..: � - ( - � \ - 'I:C71.1 le 7±,V;e71577:, i rtni".";.4 . i t 4#6, • 44 4. 4 444 4 474‘14%..,A . . ... .. tip", -..---. /.4:-- -...., . .... . . " . .. • , D, Ns" 4.4%.101,4411.111 At-, ....-..:. - ,:.-- I i C.P. i "‘. " :. . . - 4 6 • 141 t * Si 1 4,4. ISII , - i -. ' Si V 440.0) ./1 \44jit. . 4 ***** .4,0 In , *V ,,, �‘ � rc� I. �4. ♦. 4 AL hal aseak . . irarkS. A. a.. Ampt • • 4,4 _. , 11 / 19 / 2009 ti yam. `l. .j - ill y , ti -�' -4, iiiv di in -. VICE = _'a a Cri .. W'1i� HIM = =- w _ ((�- . . 7},c rn-� -►s , .4--.:1 . ....mow-.__ _•• _• L.... �._....�... - i ' �� tip - - - - Ir 1 - • - 21.111 = - ! '� __ = =7 ! r -z -_- - -s.= . - 4.1414hOlitiv • �, / 9" • . 0 c -..-%.,_, ikt .. tirellsr- CBOE_COMM01 C Pac 001.14 r- _ a i .jil __. 4 4- I V at ...Alt..• _mot_ - - - ''-�- ,� - - �. -..-.—.G17 a S- -1.::,� •-.{�__•.'_ - . . . •v✓.�2.!- a.:• •ry;'lt !.,'I.e yv'i 1 .V..C.4 )i 7+ r11'.- _ ... I. --- � .- __ _ ._ _ . ,. -- •~1.111-,rte. _ -'- or _-�-- . - illinni 08 / 28 / 2009 I I . T r I r----- It" • 4. - - - wf� .l • ... - - . - 1 1 a;as_ . 111 4 .. .. , . :. . _ . . . ,4r1 ___ . ___ _ __ _ ___ ___ ____ _ _______e alls....a..... i. ,_ , ‘ IL_ _. ___._zs___...az==..a..__ . _ 08 / 28 / 20 • CBOE_COMM 010c Pag( - - i a, a a •t "'e .-.. r _ $:-: - -1�'r Y: : i1- :;. t . �.� i _ . _ . 7� fr t fir. I n i!Ism!" !Ir.! --- ..nmil•et__ f .t la ino,,—, I/ ' -'ti 08 / 28 / 2009 \� = _, s MIEN all CBOE_COMM_01 C Pac es m ,r,,. ,i,X \tic,.a el r t„..... , C E 1 kr J 3 = J '+ VI S c 2 t4_ z i 5 tipW. u _a i G r v S Z ,Y Y - lal : 4 N OAK 51. er• 1 `i i Z - y m . ra 'd `-1 C i -' j a i 1 eg 41 a N JUN PER ST " I C c f 4. te V d It gyp'`"` , i imenvi 1 I ift. 'ir • ass_ ' / • V LJJ te k i _ .7 [�va 'if • . .. ,� N w Y/ .} I It Y - y " r' _ - - a A ::::: - _ r "'I.. . s..e5 i •i- L". ' a - ' O r _ :' CBOE_C0MM_01 C Pac COST APPROACH SUMMARY The Assessor is currently using Marshall and Swift cost tables for the cost approach of commercial properties in Weld County, which has been approved by the Division of Property Taxation to be utilized by Colorado Assessors. The structure has been classified properly utilizing the Marshall and Swift Valuation service and an appropriate value assigned. A land value has likewise been established through the utilization of vacant land sales of comparable properties. Improvement Value $59,703,055 Land Value $2,211,737 TOTAL VALUE BY THE COST APPROACH $61,914,792 CROE_COMM_01! Page COST APPROACH LAND VALUE Sales utilized to establish the value in the subject neighborhood are from 2007 and the first six months of the 2008 market for the 2010 assessment date . The comparative sales approach is the most reliable method of land valuation . Pursuant to 39- 104-( 10 . 2) (c) C . R . S . , the Assessor may utilize sales from July 2003 through June 2008 to establish the proper value, if sufficient information not available in the prior 18 months . Also , comparables outside the subject property area may be used . The Weld County Assessor has an established ongoing sales confirmation and validation program for property transactions used in developing value . The land size of the subject is 2 ,211 , 736 square feet. Comparable commercial land sales indicated value range of . 97 to $2 . 32 psf. For the subject property a value of $2 , 211 , 736 or $ 1 . 00 psf was chosen to be applicable . Parcel Number Sale Date Sale Price Land Size Per sq ft Comparable 1 080725201001 04/17/07 $5 , 500 , 000 3, 169 , 707 $ 1 .74 Comparable 2 147120000022 02/20/07 $2 , 839 , 500 2 , 918 , 520 $0 . 97 Comparable 3 147303423001 06/07/07 $ 1 , 210 , 800 522 , 720 $2 . 32 ASSESSOR'S SUBJECT LAND VALUE $2,211 ,737 CBOE_COMM_01C Page Cost Approach Summary Bldg B & C -Administration and support (Assessor bldg #1) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE,ZIP Hudson, Co DATE OF APPRAISAL 06/30/08 OCCUPANCY: Medium-security prison NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 54,308 AVERAGE STORY HEIGH1 16 CLASS: Class C EFFECTIVE AGE 2009 COST RANK Very good ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COS' 54,308 $240.03 $13,035,545 Sprinklers PSF 54,308 $3.06 166,182 Total Basic Structure cost 54,308 $243.09 $13,201,73; perimeter adjustment 1.00 wall height adjustment 1.092 Current multiplier 0.98 Local multiplier 0.99 Adjusted RCN Basic Cost $13,986,68E EXTRAS: Sq Ft Cost PSF Security fencing/Gates 3,410 $30.28 103,255 Asphalt Paving 25,837 $2.10 54,258 Razor wire 1,692 $0.84 1,421 TOTAL RCN $14,145,615 LESS DEPRECIATION FUNCTIONAL 0.10 $1,414,562 TOTAL VALUE of Bldg B&C without land $12,731,051 Rounded Value $12,730,00 Value PSF $234.41 CBOE_COMM_01( Page Cost Approach Summary Bldg D -Housing Unit (Assessor bldg #2) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/08 OCCUPANCY: Medium-security prison NUMBER OF STORIES 2 FLOOR AREA (SQ. FT.) 66,653 AVERAGE STORY HEIGH1 12 CLASS: Class C EFFECTIVE AGE 2009 COST RANK Very Good ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COS' 66,653 $240.03 $15,998,72( Sprinklers PSF 66,653 $3.02 201,292 Total Basic Structure Cost 66,653 $243.09 $16,202,67£ perimeter adjustment 0.919 wall height adjustment 1.0 Current multiplier 0.98 Local multiplier 0.99 Adjusted RCN Basic Cost $14,446,531 EXTRAS: Sq Ft Cost PSF Security fencing/Gates 3,410 $30.28 103,255 Asphalt Paving 25,837 $2.10 54,258 Razor wire 1,692 $0.84 1,421 TOTAL RCN $14,605,46E LESS DEPRECIATION FUNCTIONAL 0.10 $1,460,546 TOTAL VALUE of Bldg D without land $13,144,91E Rounded Value $13,145,0C Value PSF $197.2; CBOE_COMM_)10 Page Cost Approach Summary Bldg E -Housing Unit (Assessor bldg #3) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE,ZIP Hudson, Co DATE OF APPRAISAL 06/30/08 OCCUPANCY: Medium-security prison NUMBER OF STORIES 2 FLOOR AREA (SQ. FT.) 53,985 AVERAGE STORY HEIGH1 12 CLASS: Class C EFFECTIVE AGE 2009 COST RANK Very Good ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COS' 53,985 $240.03 $12,958,02C Sprinklers PSF 53,985 $3.06 165,194 RCN BASIC STRUCTURE COS' 53,985 $243.09 $13,123,21' perimeter adjustment 0.93 wall height adjustment 1.0 Current multiplier 0.98 Local multiplier 0.99 Adjusted RCN Basic Cost $11,866,35E EXTRAS: Sq Ft Cost PSF Security fencing/Gates 3,410 $30.28 103,255 Asphalt Paving 25,837 $2.10 54,258 Razor wire 1,692 $0.84 1,421 TOTAL RCN $12,025,29( LESS DEPRECIATION PHYSICAL 0.00 $0 FUNCTIONAL 0.10 $1,202,529 ECONOMICAL 0.00 $0 TOTAL VALUE of Bldg E without land $10,822,76' Rounded Value $10,823,01 Value PSF $200.4 CBOE_COMM_OP Pag( Cost Approach Summary Bldg F - Housing Unit (Assessor bldg #4) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/08 OCCUPANCY: Medium-security prison NUMBER OF STORIES 2 FLOOR AREA (SQ. FT.) 53,985 AVERAGE STORY HEIGH1 12 CLASS: Class C EFFECTIVE AGE 2009 COST RANK Very good ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COS' 53,985 $240.03 $12,958,02C Sprinklers PSF 53,985 $3.06 165,194 RCN BASIC STRUCTURE COS' 53,985 $243.09 $13,123,214 perimeter adjustment 0.93 wall height adjustment 1.0 Current multiplier 0.98 Local multiplier 0.99 Adjusted RCN Basic Cost $11,866,35( EXTRAS: Sq Ft Cost PSF Security fencing/gates 3,410 $30.28 103,255 Asphalt Paving 25,837 $2.10 54,258 Razor wire 1,692 $0.84 1,421 TOTAL RCN $12,025,29( LESS DEPRECIATION PHYSICAL 0.00 $0 FUNCTIONAL 0.10 $1,202,529 ECONOMICAL 0.00 $0 TOTAL VALUE of Bldg F without land $10,822,76' Rounded Value $10,823,01 Value PSF $200.4 CBOE_COMM_011 Pag( Cost Approach Summary Bldg G - Housing Unit (Assessor bldg #5) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE,ZIP Hudson, Co DATE OF APPRAISAL 06/30/08 OCCUPANCY: Medium-security prison NUMBER OF STORIES 2 FLOOR AREA (SQ. FT.) 53,985 AVERAGE STORY HEIGH1 12 CLASS: Class C EFFECTIVE AGE 2009 COST RANK Very Good ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COS' 53,985 $240.03 $12,958,02( Sprinklers PSF 53,985 $3.06 165,194 RCN BASIC STRUCTURE COS' 53,985 $243.09 $13,123,214 perimeter adjustment 0.932 wall height adjustment 1.0 Current multiplier 0.98 Local multiplier 0.99 Adjusted RCN Basic Cost $11 ,866,35( EXTRAS: Sq Ft Cost PSF Security fencing/gates 3,410 $30.28 103,255 Asphalt Paving 25,837 $2.10 54,258 Razor wire 1,692 $0.84 1,421 TOTAL RCN $12,025,29( LESS DEPRECIATION PHYSICAL 0.00 $0 FUNCTIONAL 0.10 $1,202,529 ECONOMICAL 0.00 $0 TOTAL VALUE of Bldg B&C without land $10,822,76' Rounded Value $10,823,01 Value PSF $200.4 CBOE_COMM_O1 Page Cost Approach Summary Gatehouse (Assessor bldg #6) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE,ZIP Hudson, Co DATE OF APPRAISAL 06/30/08 OCCUPANCY: Medium-security prison NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 1,600 AVERAGE STORY HEIGH1 15 CLASS: Class C EFFECTIVE AGE 2009 COST RANK Good ESTIMATED LIFE 45 HEATING AND COOLING Warm & Cool air zoned UNITS COST TOTAL RCN BASIC STRUCTURE COS' 1,600 $93.05 $148,880 perimeter adjustment 1.105 wall height adjustment 1.069 Current multiplier 0.98 Local multiplier 0.99 Adjusted RCN Basic Cost $170,623 EXTRAS: Sq Ft Cost PSF Canopy 1,600 $17.62 28,192 TOTAL RCN $198,815 LESS DEPRECIATION PHYSICAL 0.00 $0 FUNCTIONAL 0.00 $0 ECONOMICAL 0.00 $0 TOTAL VALUE of Gatehouse without land $198,815 Rounded Value $198,800 Value PSF $124.2 CBOE_COMM_01 Pagi Cost Approach Summary Storage Warehouse (Assessor bldg #7) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE,ZIP Hudson, Co DATE OF APPRAISAL 06/30/08 OCCUPANCY: Medium-security prison NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 7,500 AVERAGE STORY HEIGH1 14 CLASS: Class S EFFECTIVE AGE 2009 COST RANK Good ESTIMATED LIFE 40 HEATING AND COOLING Electric UNITS COST TOTAL RCN BASIC STRUCTURE COS' 7,500 $48.25 $361,875 perimeter adjustment 1.040 wall height adjustment 1.000 Current multiplier 1.01 Local multiplier 0.97 Adjusted RCN Basic Cost $368,710 EXTRAS: Sq Ft Cost PSF Loading Wells 1,120 $15.04 16,845 TOTAL RCN $385,555 LESS DEPRECIATION PHYSICAL 0.00 $0 FUNCTIONAL 0.00 $0 ECONOMICAL 0.00 $0 TOTAL VALUE of storage warehouse without land $385,517 Rounded Value $385,5 Value PSF $51.4 CBOE_COMM_01 Pag Cost Approach Summary Gymnasium (Assessor bldg #8) PARCEL NUMBER 1307-26-2-01-002 PROPERTY OWNER Inland PPD Hudson Associates LLC ADRESS 3001 N Juniper St CITY, STATE, ZIP Hudson, Co DATE OF APPRAISAL 06/30/08 OCCUPANCY: Medium-security prison NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 8,000 AVERAGE STORY HEIGH1 24 CLASS: Class S EFFECTIVE AGE 2009 COST RANK Fair ESTIMATED LIFE 35 HEATING AND COOLING Forced air UNITS COST TOTAL RCN BASIC STRUCTURE COS' 8,000 $77.70 $621,600 perimeter adjustment 0.968 wall height adjustment 1.257 Current multiplier 1.04 Local multiplier 0.97 Adjusted RCN Basic Cost $763,004 EXTRAS: Sq Ft Cost PSF Canopy 80 $17.62 1,410 Concrete slab 3,200 $3.10 9,920 TOTAL RCN $774,333 LESS DEPRECIATION PHYSICAL 0.00 $0 FUNCTIONAL 0.00 $0 ECONOMICAL 0.00 $0 TOTAL VALUE of Gymnasium without land $774,755 Rounded Value $774,755 Value PSF $96.8 CBOE_COMM_0' Pac COST APPROACH SUMMARY Less M & S M & S Cost Functional RCNLD Building Bldg type RCN Depr Rounded Sq Ft #of Beds Value ps Administration & Bldg B& C Support $14,145,619 $1,414,562 $12,730,000 54,308 $234.4 Bldg D Housing Unit $14,605,465 $1,460,546 $13,145,000 66,653 338 $197.2 Bldg E Housing Unit $12,025,290 $1,202,529 $10,823,000 53,985 304 $200.4 Bldg F Housing Unit $12,025,290 $1,202,529 $10,823,000 53,985 304 $200.4 Bldg G Housing Unit $12,025,290 $1,202,529 $10,823,000 53,985 304 $200.1 Bldg A Gatehouse $198,800 $198,800 1,600 $124.2 BldgJ Storage Warehouse $385,500 $385,500 7,500 $51.1 Bldg I Gymnasium $774,755 $774,755 8,000 $96/ Total Imps $59,703,055 Add Land $2,211,737 Total Value $61,914,792 300,016 1250 $206.: Per Per Subjects 1,188 1,250 total rentable beds $49,532 beds $52,11; CBOE_COMM 01 Pag All permits for the Hudson Prison Building Permit Value B&C $10,700,000 p $14,888,000 E $11,072,000 F $11,072,000 G $11,072,000 Gatehouse $205,000 Stor Whse $763,000 Gym $604,000 Lighting/fence $1,016,000 Total permit value $61,392,000 Land $2,211,737 Grand Total $63,603,737 1,188 rentable beds $53,538 1, 250 total beds $50,883 300,016 sf $212.00 The cost to bring in the off-site infrastructure including water, sewer, natural gas, phone,and electric from approximately 2.5 miles away cost an additional 15 to 20 million. The actual construction costs to build the Hudson Prison were request by the Weld County Assessor's Office on several occasions but have yet to be provided. CBOE_COMM_0' Pag MARKET INCOME WORKSHEET Parcel : 130726201002 Name : Inland PPD Hudson Associates Address : Hudson Correctional Facility - Cornell Companies 3001 N Juniper Street, Hudson, Co Bldg Sq Ft Use # of beds (1188 beds + 300 ,016 Prison 1250 62 seg Tax Rate Mill Rate Assm't Rate ETR 0 .083719 0 .29 0 .024278 Avg Rent PSF Subject Rents Annual Gross #of Beds Rent per bed # of days Income # of beds 1 , 188 $54.00 365 $23,415,480 Vacancy 20% $4 ,683 ,096 EGI $18,732,384 Expenses Industry Aver 60% $ 11 ,239 ,430 Net Income $7 ,492,954 Net Income/Overall Cap Rate = Property Value Cap Rate + Eff Tax Rate 11 .500 0 . 115 Total Value Estimated Property Value $65,156,118 Value per bed 1 , 188 beds $ 541845 Value PSF $ 217 . 18 CBOE_COMM_01 i Page CONCLUSION Real property for tax year 2010 must be valued utilizing the level of value for the period of one and one-half years immediately prior to July 1, 2008. Except that, if comparable valuation data is not available from such one-and one-half-year period to adequately determine the level of value of a cla: of property. The period of five years immediately prior to July 1, 2008 shall be utilized to determine the level of value. Said level of value shall be adjusted to the final day of the data gathering period. Changes occurring between base years are not to be accounted for until the following level of value i implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, etc or creation of a condominium, or any new regulations restricting or increasing the use of the land, or combination thereof. {39-1-104(11)(b)(1) C. R .S.} The subject property has been classified as Commercial Property for assessment purposes. Commercial property value shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. {39-1-103(5)(a) C. R. S.} The Assessor has considers all three approaches to value for the subject parcel on appeal. FINAL RECONCILIATION After consideration of the cost, market and income approaches, it is the Weld County Assessor's opinion that the value of$61,914,792 , most accurately reflects the value of the subject property in Weld County for the 2008 tax year. COST APPROACH MARKET APPROACH INCOME APPROACH $61,914,792 n/a $65,156,118 ASSESSOR'S VALUE $61,914,792 CBOE_COMM_01( Page Bldg B & C 90' 509' O 205' 266' Bldg C Q Bldg C Area C Bldg C Area B Area A ko 10250.0 sf 13300.0 sf 7300.0 sf 599' Bldg B a 23457.5 sf 61.3' Jail - Correctional Facility Administration Bldg 164' 19.3' Blt 2009 ",'\� Class S Frame Masonary Walls 80 Package-air 16' wh Total Area 54,308.0 sf Sketch by AIM h'edina" CBOE_COMM_O Pac 55'7' Bldg D Jail Correctional Facility 24.3' office 24.3' i,' Blt 2008 y rj Class s N.- '‘. %t•. es, Red Iron support frame w/ block CF:' Package air 6 1 16' wh y9` t(e'.• 7St- 1st Floor 47342.8 sf 4t Pod Pod i s 100 cells Day Room Day Room (9 28.3' Pod Pod 7' 2 4 Day Room •., Day Room 153' 4t?, Pod ',.P ..sap. Day Room 7' 2' 7' 116' in _ r - '' Seg.Rec. Yard ,c2 91' Sketch by Apex Medina'" CBOE_COMM_01 Pag 5.5./' Jail - Correctional Facility 24.3' office 24.3' Bit 2008 g df Class S . %,,,,,.-' s- Red Iron support frame w/ block ,' . Package-air 16' wh �� gat`'/' / b y ES, Mezzanine / 2nd floor „.. Pod o Pod 19310.0 sf 1 " s Day Room Day Room 100 cells ?.. ••„% 7' ontro 28.3' Pod oa Pod m 2 7' qtr 2 N Day Room 4 Day Room __ _ 04 153' T ^ v' S0 N Pod `:9.is,,o- ai 3 C7 �js':, U Day Room a 2 + 7 2 7' 116' Cells in _ 7 Z --' Seg.Rec. Yard °' 91' Sketch by Apex Medina," CBOE_COMM_01 Pagi BLDGS E,F, & G Jail - Correctioal Facility Bldg E 24.3' 24.3' Blt 2008 at_iftw.- Offices Class S it i Steel frame w/ concrete block L\.- Package-air 25' wh CP7/ CPi/ Pre-cast Concrete cells 1st Level 38935.6 sf Ch. .ta ,:" Si d Mezzanine 15050.0 sf ',ye /d • °s S` Total Area 53,985.0 sf Pod Pod "••••••' •'.. 1 4 :' 28.3' ; Day Room 28.3' C` `G¢ 7' Pod Pod •4#4. 2 3 : . a 76 cells mezzanine level 76 cells 1st level :'G� 152 cells total ,6'8Z Sketch by Apex MedinaTM CBOE_COMM_01( Page BLDGS ES,& G 24.3' 24.3' Mezzanine Floor Area Offices 1 Corridor area 1843.3 sf titi�' J?. Cell area 10187.0 sf Balcony 3,020.0 sf O, P.*.. d57 Total Mezzanine •ti, t dit `P4� 59. 15050.0 sf y,�o ed/e'� AIra s n O 28.3 --IOpen to Day Room Q Open to Day Room , 28.31 • 0 7 CPi�s Ge' o,, L •e ure. •As , •• -e, ••"" +6 .. • yr' oJ -T. 'Y ,ssz :h by Apex Medina^' CBOE_COMM_O1i Rag, GATEHOUSE 80' Entry Building Storage Warehouse Emergency Blt 2009 VistaSecuity Armory Response Metal fr w/block Waiting Area Check 20' Package-air 15' wh 1600.0 sf Canopy 5 50.0 sf 10' Sketch by Apex Medina"' CBOE_COMM_070 Page 20' a E 56' ec �' 0) O c -DN 0 H 0 0 Storage Warehouse Blt 2009 Class S 60' Electric heat 14' wh 7500 .0 sf 125' Sketch by Ppex Medina'm C BOE_C0MM_01 Pag 100' 40' Gym Blt 2009 Steel fr w/ block 80 Forced Air Handball Courts 24' wh 3200.0 sf CO 8000.0 sf 72' Office Maintenance Restrooms v� in 8' 8' 40.0 sf 40.0 sf Sketch by Apex Medina"' CBOE_COMM_01 Pag REAL AND PERSONAL PROPERTY NOTICE OF DETERMINATION Christopher M. Woodruff Date of Notice: 6/22/2010 Weld County Assessor Telephone: (970) 353-3845 or(720) 652-4255 1400 N 17th Ave Fax: (970) 304-6433 Greeley, CO 80631 E-mail: appeals@co.weld.co.us www.co.weld.co.us Office Hours: 8:00 AM - 5:00 PM SCHEDULE/ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION R6775763 2010 2564 L2 SAND HILLS INDUSTRIAL PARK 3001 N JUNIPER ST HUDSON,CO INLAND PPD HUDSON ASSOCIATES LLC 3 211 E 7TH STREET SUITE 1120 AUSTIN,TX 78701 re a ASSESSOR'S VALUATION ACTUAL VALUE PRIOR PROPERTY CLASSIFICATION TO ACTUAL VALUE AFTER REVIEW REVIEW COMMERCIAL 61,914,792 61,914,792 TOTAL $61,914,792 $61,914,792 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: LH02-No change has been made to the valuation of this property. Colorado law requires us to send this notice of denial for all properties on which we do not adjust the value. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing real property appeals is July 15. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bt;or ask your Assessor for a listing of the local taxing authorities. IT, i= o Please refer to the reverse side of this notice for additional inforrl,ion r I= fI R r• ➢ 1--i cf.)CORNELL CORRECTIONS OF CALIFORNIA - CORNELL COMPANIES INC- BRUCE BROWN 1700 W LOOP SUITE 1500 HOUSTON TX 77027 2010-1627 15-OPT-AR PR 207-08/08 NOD#.8938 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 1 through August 5 at 915 10th Street, Greeley, CO To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail or deliver a copy of both sides of this form to: WELD COUNTY BOARD OF EQUALIZATION 915 10TH Street, P.O. Box 758 Greeley, Colorado 80632 Telephone(970) 356-4000 Ext, 4225 To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 15 for real property and on or before July 20 for personal property— after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 11. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals District Court 1313 Sherman Street, Room 315 9`"Avenue and 9`" Street, P.O. Box C Denver, CO 80203 Greeley, Colorado 80632 (303) 866-5880 Telephone(970) 356-4000 Ext. 4520 www.dolacolorado.gov/baa Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, a{ 39-1-120(3), C.R.S. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2008? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) $ 3C -HO8441 TWA What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraisal, etc.) '1''e-r discussion cora, eoor-fvtcey o.+ cL{ve 04,ce o.' ( ( Too n{i c-krk , �(-1,e kea.ri n� �ror '-k S ,uat}er is scked'Vleot�'or 0V 3O PM Ott we&esd4..y, 3L) AZ; QO/ ATTESTATION I, Ih- n er o er or agent' of the property identified above, affirm that the statements ccnt:in>: her and any attachments hereto are true and complete. 713 a35�73sr - $ -.2G/O Signature Telephone Number Date /1 Attach letter of authorization signed by property owner. 15-OPT-AR PR 207-08/08 NOD# 8938 Letter of Authorization for Property Tax Matters I/We,the undersigned, as the owner of the property listed below located in Weld County, delegate the agent listed below full authority to handle all matters relative to assessments and to represent me/us, with the assistance of legal counsel if necessary, in the appeal process for taxyear 2010 . Cornell Corrections of California, Inc. Agent Name All correspondence regarding my/our appeal of the value of the property listed below should be directed to: Cornell Corrections of California, Inc. do Cornell Companies. Inc. 1700 W. Loop S., Suite 1500 Houston, TX 77027 Attn: Bruce Brown Owner Information: Property Owner Name Inland PPD Hudson Ass es L Please Prl Property Owner Signature C/4.0.v Te"1es (?)"-eS` Date TiC O1S-; JP Property Information(Please attach additional sheets as necessary) 1. Parcel#and/or Account# Parcel#: 130726201002 / Account#: R6775763 Property Address Lot 2, Sand Hills Industrial Park 3001 N.Juniper St., Hudson, CO 80642 2. Parcel#and/or Account# Property Address 3. Parcel#and/or Account# Property Address 4. Parcel#and/or Account# Property Address 5. Parcel#and/or Account# Property Address Tonya Disney From: Courtney Anaya Sent: Thursday, July 08, 2010 9:44 AM To: Tonya Disney Subject: RE: CBOE10MASTER.xls Thanks! Just FYI - I spoke with Bruce Brown with Cornell Company representing R6775763 (Inland PPD - Hudson prison). I have tentatively scheduled a hearing on Wednesday, July 28th from 2:30 - 3:30 as he is flying in from LA. He will be mailing NOD. Thanks! Courtney Anaya Assistant Analyst Weld County Assessor's Office (970) 353-3845 ext. 3670 From: Tonya Disney Sent: Thursday, July 08, 2010 9:37 AM To: Courtney Anaya Subject: CBOE10MASTER.xls Here is the updated list. Thank you. 1 6 CLERK TO THE BOARD rte:Se PHONE (970) 356-4000 EXT 4226 FAX: (970) 352-0242 WEBSITE: www.co.weld.co.us VII 915 10TH STREET P.O. BOX 758 GREELEY, COLORADO 80632 C. COLORADO July 22, 2010 INLAND PPD HUDSON ASSOCIATES LLC 211 E 7TH STREET SUITE 1120 AUSTIN, TX 78701 Parcel No.: 130726201002 Account No.: R6775763 Dear Petitioner(s): The Weld County Board of Equalization has set a date of July 28, 2010, at or about the hour of 2:30 PM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Centennial Center, First Floor Hearing Room, 915 10th Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 5, 2010, and mailed to you on or before August 10, 2010. Because of the volume of cases before the Board of Equalization, all cases shall be limited to 15 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. • If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information, at which time the Assessor will make the data available within three (3) working days, subject to any confidentiality requirements. 2010-1627 AS0076 INLAND PPD HUDSON ASSOCIATES LLC - R6775763 Page 2 Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. Very truly yours, BOARD WAS,,,_ OF EQUALIZATION �O )4,/. Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor CORNELL CORRECTIONS OF CALIFORNIA CORNELL COMPANIES INC - BRUCE BROWN 1700 W LOOP SUITE 1500 HOUSTON, TX 77027 2010-1627 AS0076 r � } irk : NIL. i 1-: 1-` REVISED APRIL 2010 ) -El W ; .- i t CENTER ON THE STATES Prison Count State Population Declines for the First Time in 38 Years For the first time in nearly 40 years, the number of state the four decades since, the number of prisoners grew by prisoners in the United States has declined. Survey data 705 percent." Adding local jail inmates to state and federal compiled by the Public Safety Performance Project of prisoners, the Public Safety Performance Project calculated the Pew Center on the States, in partnership with the in 2008 that the overall incarcerated population had Association of State Correctional Administrators, indicate reached an all-time high, with 1 in 100 adults in the United that as of January 1 , 2010, there were 1 ,404,053 persons States living behind bars.' under the jurisdiction of state prison authorities, 4,777 (0.3 percent) fewer than there were on December 31 , 2008. FIRST STATE DECLINE IN 38 YEARS This marks the first year-to-year drop in the state prison The number ut suit: inmates grew Nto uetween population since 1972. 1972 and 2008 before dropping in 2009. Jan. 1, 2010: 1,404,503 prisoners 1.5 million —0.3% In this period, however, the nation's total prison population increased by 2,061 people because of a jump in the 1.2 number of inmates under the jurisdiction of the Federal Bureau of Prisons. The federal count rose by 6,838 prisoners, 0.9 or 3.4 percent in 2009, to an all-time high of 208,118. 0.6 1972: Prior to 1972, the number of prisoners had grown 03 1925: prisone % -1.5% at a steady rate that closely tracked growth rates in 85,239 prisone . --�• the general population. Between 1925 (the first year 0 1930 1940 1950 1960 1970 1980 1990 2000 national prison statistics were officially collected) and NOTE:Annual figures prior to 1977 reflect the total number of sentenced prisoners in state custody. Beginning in 1977. all figures reflect the state jurisdictional population as reported 1972, the number of state prisoners increased from to the Bureau of Justice Statistics'"Prisoners" series. Data for both sentenced prisoners in custody and the jurisdictional population are reported for 1977 to illustrate the transition. 85,239 to 174,379.' Annual percent change in state prison populations Starting in 1973, however, the prison population and +3% imprisonment rates began to rise precipitously. This +2 change was fueled by stiffer sentencing and release laws +1 and decisions by courts and parole boards, which sent 0 a lin more offenders to prison and kept them there for longer -0.3% terms! In the nearly five decades between 1925 and —1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1972, the prison population increased by 105 percent; in SOURCE: U.S. Department ofJustice.Bureau of Justice Statistics;Pew Center on the States, Public Safety Performance Project ci ! n then p. 2 h ; s. EXHIBIT _. , . P' F: Brief : • State Trends Vary Widely In absolute numbers, California's state inmate count fell the most, with the state shedding 4,257 prisoners in 2009. While the overall state prison population has declined, This follows a decline of 612 prisoners in 2008. Five other the Pew survey revealed great variation among the states experienced total reductions of more than 1 ,000 states. In 26 states, the population dropped, with some prisoners in 2009: Michigan (3,260), New York (1 ,699), posting substantial reductions. Meanwhile, the number Maryland (1 ,315), Texas (1 ,257) and Mississippi (1 ,233). of prisoners continued to grow in the other 24 states, several with significant increases. Among those states where the prison population increased, Indiana led the nation in proportional terms, In proportional terms, the steepest decline occurred growing by 5.3 percent. Other states with significant in Rhode Island, where the prison population tumbled increases were West Virginia (5.1 percent), Vermont 9.2 percent. Other states with substantial declines (5 percent), Pennsylvania (4.3 percent) and Alaska included Michigan (6.7 percent), New Hampshire (3.8 percent). In the 23 states where the state prison (6.0 percent), Maryland (5.6 percent) and Mississippi population grew, more than half of the increase occurred (5.4 percent). Michigan's contraction follows a three in just five states: Pennsylvania (2,122), Florida (1 ,527), percent drop during 2008. Indiana ( 1 ,496), Louisiana (1 ,399) and Alabama (1 ,053). STATES MOVE IN DIFFERENT DIRECTIONS Percent change in state prison populations, 2008-2009. WA +1.790 Largest increase NH +2.3% MN Indiana MT .0% ME —0.1% ND VT +1.4% OR +5.0%-6 +1.7% `1 +1.6% MA ID r +1.590 SD WI NY -2.2% WY +2.8% -1.1% -2.8% -1 —0.490 —6.796 RI NV NE PA CT° —9.2% +4.3% —4.6/o —1.6% nr- -0.7% IL IN OH NJ CA —0.2% CO —0.7% +5.3% —0.2% DE —2.3% —2.5% 96 KS MOKy VA —4.2% "� +1.2% +2.0% _ 15% MD 1.3% —5.6% Largest AZ x +0.5% NC+1.0% decrease +2.4% NM +2�% All SC Rhode +2.7% GA +3.1°w l —1.0% Island 'i J r x.47 ` —5.49b MS +1.6% Increases ® Larger (>3%) AK t ❑ Smaller (0-3%) +3.8% : +3.6% Decreases FL O Smaller (0-3%) +13% HI ® Larger (>3%) —1.1% NOTE:Percent change is from December 31,2008 to January 1,2010 unless otherwise noted in the jurisdictional notes. SOURCE: Pew Center on the States, Public Safety Performance Project 2 Public Safety Performance Project I Pew Center on the States The tremendous variation among growth rates in that states began to realize they could effectively reduce the states shines a bright light on the role that state their prison populations,and save public funds,without policy plays in determining the size and cost of the sacrificing public safety.In the past few years,several prison system. states,including those with the largest population declines,have enacted reforms designed to get taxpayers "tear 1s Driving tie Dec ine7 a better return on their public safety dollars: As recently as 2006,states were anticipating faster California.One of the primary reasons for California's growth in prison populations.A survey of state past prison growth has been its high rate of parole projections that year forecast a five-year increase of revocations.12Over the past two years,the state has 162,725 inmates and a jump of 104,515 by year-end sought to cut the number of low-risk parolees returning 2009.°However,the actual increase was 38,332 fewer to prison for technical violations by expanding use of than projected.' intermediate sanctions to hold violators accountable without a costly return to prison.13 Despite the significant What happened?Conventional wisdom holds that overall population decline during 2009,California's states are facing such large budget deficits that they are problems with prison overcrowding remain far from simply shedding inmates in a rush to save money.While resolved.In August 2009,a federal court ordered the the fiscal crisis certainly has prompted many states to state to cut its prison population by more than 40,000 revisit their sentencing and release policies,financial prisoners,or about 30 percent,in two years.'The state is pressures alone do not explain the decline in state struggling to develop a plan to meet this requirement. prison populations. Michigan.In March 2007,Michigan's prison population The number of inmates in prison is determined by the reached an all-time high of 51,554.''Less than three flow of admissions and releases.Indeed,total state years later,the state has reduced its population by admissions to prison declined in 2007,well before the more than 6,000 inmates to 45,478.This reduction has economic collapse,and again in 2008YThe admissions come about largely by reducing the number of inmates decline was driven exclusively by a reduction in the who serve more than 100%of their minimum sentence, number of people sent to prison for new crimes,as the decreasing parole revocation rates,and enhanced other type of admission,those for violations of probation reentry planning and supervision through the Michigan or parole,increased for the fifth year in a row."On the Prisoner Reentry Initiative.'E release side of the equation,the number of inmates released from state prison grew for the seventh year in Texas. In January 2007,Texas faced a projected prison a row in 2008 and reached an all-time high of683,706." population increase of up to 17,000 inmates in just Taken together,the rate of state prison growth began to five years."Rather than spend nearly 52 billion on new slow in 2007,dropping from 2.8 percent in 2006 to 1.5 prison construction and operations to accommodate percent in 2007,and then to 0.7 percent in 2008 before this growth, policy makers reinvested a fraction of this declining 0.3 percent in 2009." amount-5241 million—in a network of residential and community-based treatment and diversion Admissions began to decline and releases started to rise programs.'8This strategy has greatly expanded for a variety of reasons,but an important contributor is sentencing options for new offenses and sanctioning Prison Count 2010: State Population Declines for the First Time in 38 Years $ options for probation violators.Texas also increased In addition to changes in policy and practice at the state its parole grant rate and shortened probation terms. level,trends in crime and other demographic changes As a result,this strong law-and-order state not only are potential contributing factors to the prison decline. In prevented the large projected population increase 2008,the index crime rate was 763 serious offenses per but reduced its prison population over the three years 100,000 persons.)6That figure is 13 percent lower than in since the reforms were passed.''' 1972,the last year in which the state prison population declined,and 37 percent lower than the historic high of Ytissssippl.In 2008,Mississippi rolled back to 25 2 7 990. Indeed,the nation's crime rate has been declining percent,from 85 percent,the portion of sentences steadily since the early 1990s,but the prison population that nonviolent offenders are required to serve prior has not reflected this trend.If the crime trend was an to parole eligibility."Between July 2008,when the explanatory factor for this year's state prison decline,why law took effect,and August 2009,Mississippi paroled were the results not apparent until nearly 20 years after 3,076 inmates a median of 13 months sooner than the beginning of the crime drop? they would have under the 85 percent law,which was passed in 1995.'Through August 2009,only 121 One possible explanation for this delayed effect lies in of those paroled offenders have been returned to the expanding population of people on community custody-116 for technical violations of parole and supervision.Currently,more than five million offenders five for nonviolent offenses 22 This initial recidivism are on probation or parole,an increase of 59 percent rate of 0.2%(return for a new offense)in the first year since 1990.28 During the 1990s,admissions to prison is a fraction of the national rate of 10.4%.3 Officials for new crimes were growing by less than one percent attribute the low recidivism rate to the use of a new risk a year(potentially a reflection of declining crime), assessment tool,which is helping distinguish between while admissions for violations of parole rose by four inmates who can be safely paroled and those who need percent a year.'During that decade,parole violations, to remain behind bars. as a proportion of all prison admissions,more than doubled.'°Because parolees and probationers are subject <e.aca.Three years ago,Nevada projected a prison to revocation to prison for violating the terms of their population increase of more than 60 percent by 2012 supervision,they are more likely to return to prison than at an estimated cost to taxpayers of more than $2 people from the general population are likely to enter billion.^The 2007 legislature voted nearly unanimously prison,It may be that the growing parole and probation to enact several policy measures that increased program population,and the recycling of these offenders back into credits awarded for in-prison education,vocational and prison for violations,kept the prison population increasing substance abuse treatment;expanded the number of during a time when crime declined.It is only during credits people in prison and on community supervision recent years,as new court commitments(admissions to can earn for"good time'and compliance with conditions, prison for new crimes) have decreased and the growth respectively;and reinstated an advisory commission in revocations has stabilized,that the number of prison to review sentencing and corrections policies for inmates has dropped. effectiveness and efficiency.The combination of these measures and other reforms saved Nevada$38 million in Changes in the general population can also affect the size operating expenditures by FY 2009 and helped avert$1.2 and make-up of the prison population.Research shows billion in prison construction costs. ' that criminal offending peaks in late adolescence and then 4 Public Safety Performance Project I Pew Center on the States declines throughout adulthood." As baby boomers age and the general population becomes older,crime PRISON COUNT DROPS IN 26 STATES rates can be expected to decrease as well. p change n rirahe anion pop gia i1JUb ggrU9. eJ.erai Growth Continues -4,257 California —3,260—Michigan —1,699 New York The federal prison population has grown at a far —1,315 Maryland faster rate than has the state prison population,more —1,257 Texas —1,233 Mississippi than doubling since 199532 Despite the decline in —945 Connecticut the state prison population in 2009,the number of -802 MN New Jersey —479 I.Colorado prisoners under the jurisdiction of the Federal Bureau —371 S Rhode Island of Prisons continued to increase rapidly,rising to —313■Illinois —300 In Delaware 208,118.On balance,the federal system has tougher —290■Kentucky sentencing laws,more restrictive supervision policies —281 II Iowa —268■Wisconsin and fewer opportunities for diversion of defendants. —252■Massachusetts All of these factors are likely contributing to the —235 I South Carolina —220404■Nevada continued increase in the number of prisoners in the —195 •Virginia federal system.More specifically,expanding federal —773 New Hampshire —80 f Ohio jurisdiction over certain offenses and increased —64 I Hawaii prosecutions of immigration offenses help explain the —30 Nebraska —11 Utah divergence in trends between most states and the .vn. —9 Wyoming federal system.Prior to 1994 there were relatively few STATES WITH DECREASES —2 Montana STATES WITH INCREASES Maine +31 immigration cases sentenced in federal courts,but North Dakota I+34 in 2008 they accounted for 28.2 percent of all federal South Dakota 1+92 Kansas 1+102 sentences,more than 21,000 individuals." Vermont 1+105 Idaho 1+110 t Tennessee +145 �,.' I, , i the Deci ne Continue ? Minnesota 1+154 New Mexico +176 Alaska ■+190 After nearly four decades of uninterrupted growth,an Oregon ■+237 Washington II+307 annual drop in the state prison population is worthy West Virginia ■+306 of note, no matter the scale of decline.However,it North Carolina ®+389 Arkansas +455 Oklahoma too soon to say whether the 2009 decline will be m xma -+533 a temporary blip or the beginning of a sustained Missouri MN+606 Georgia +843 downward trend. Arizona +934 Alabama +1,053 It is possible that this narrow decline is simply seasonal Louisiana +1,399 Indiana +1,496 and may adjust upward in the first half of 2010.The Florida +1,527 Pennsylvania +2,122 nation's prison population can experience seasonal patterns,with growth tending to be clustered in the NOTE change la from December 31.2008 toJanuary 1,2010 unless otherwise noted in the jurisdictional notes. first half of the calendar year.'°The decline in 2009 SOURCE Pew Center on the States,Public Safety Performance Project Prison Count 2010:State Population Declines for the First Time in 38 Years 5 could be part of a seasonal downward adjustment and said they preferred"a mandatory intensive treatment an increase in the first six months of 2010 could eliminate program as an alternative to prison;"a level of support the 4,777-person drop.With a decline this narrow,when that went up to 83 percent when respondents were the population is measured may affect the outcome. told the diversion of lower-level offenders could help avert Si billion in new prison costs." However,there are reasons to suspect that the decline in 2009 could be a harbinger of a prolonged pattern. Increasing focus on cost-benefit analysis.Across all Since the start of the nation's prison expansion,the areas of government, policy makers are demanding landscape of sentencing and corrections policy has to know what results programs are producing,not changed dramatically on several fronts: just what funding levels are or how many people are being served. Advances in supervision technology.Global Positioning System(GPS)monitors,rapid-result drug tests and ATM- Budget pressure.Corrections costs have quadrupled like reporting kiosks offer authorities new technologies in just the past 20 years,and now account for 1 of to monitor the whereabouts and activities of offenders in every 15 state general fund discretionary dollars.3' the community.These capabilities are giving lawmakers, Corrections has been the second fastest-growing judges and prosecutors greater confidence that they can category of state budgets,behind only Medicaid, protect public safety and hold offenders accountable and nearly 90 percent of that spending has gone to with sanctions other than prison. prisons." Advances in the science of behavior change.Research This is a drastically different policy environment than has identified several strategies that can make significant the one that existed in the 1970s and 1980s,when dents in recidivism rates,including cognitive-behavioral states decided that building more and more prison therapy,motivational interviewing and the use of swift cells was the answer to crime,and it helps explain why and certain but proportional sanctions for violations of more than half of the states have seen a reduction in the rules of probation and parole. the size of their prison population.No matter what happens in the short term,with more than 1.6 million Development of more accurate risk assessments. people currently in state and federal prisons and more Analyses of huge volumes of data have helped isolate than 700,000 additional people in local jails,"the United the specific factors that predict criminal behavior, States will continue to lead the world in incarceration such as antisocial values and thinking patterns.While for the foreseeable future." no risk assessment tools are foolproof,today's"third generation"tools do a good job of distinguishing high-, medium-and low-risk offenders and of pointing the Li/Lind/eaway toward case management plans that will cut the ire ,2i/o6. 7rrJr/i�7prr Sir/rn chances of re-offense. - PC 1'rr�hrr ',CAS a, hr°ip,au>r, ,o-inunr hsrnlh .�runa[, (l<ucr-, //V,'n pr)11; irr Polls show support for prison alternatives.The public .nnfroanvi,•r'rbi,;vt/r Au/Jig rumr'urrrri,iiu is supportive of using community corrections rather a/C�r i,r„rri, / 1,irhti; au'� n, hR uth'Inldn than prison for nonviolent offenders.In a 2007 voter ,, / /)( /h/,. n7(,,'(rr!t> ,',5/] poll,for example,71 percent of Texas respondents 6 Public Safety Performance Project I Pew Center on the States STATE AND FEDERAL PRISON COUNTS Dec.31, :an.1. - °u Dec 31, Ban.1, n '5, State 2008 2010 Change Change State 2008 2010 Change Change Alabama 30,508 31,561 +1,053 +3.5% Nevada 12,743 12,539 -204 -1.6% Alaska 5,014 5,204 +190 +3.8% New Hampshire 2,904 2,731 -173 -6.0% Arizona 39,589 40,523 +934 +2 4% New Jersey 25,953 25,351 -602 -2.3% Arkansas 14,716 15,171 +455 +3.1% New Mexico 6,402 6,578 +176 +27% California 173,670 169,413 -4,257 -2.5% New York 60,347 58,648 -1,699 -2.8% Colorado 23,274 22,795 -479 -2.1% North Carolina 39,482 39,871 +389 +1 0% Connecticut 20,661 19,716 -945 -4.6% North Dakota 1,452 1,486 +34 +2.3% Delaware 7,075 6,775 -300 -4.2% Ohio 51,686 51,606 -80 -0.2% Florida 102,388 103,915 +1,527 +15% Oklahoma 25,864 26,397 +533 +2.1% Georgia 52,719 53,562 +843 +1.6% Oregon 14,167 14,404 +237 +1.7% Hawaii 5,955 5,891 -64 -1.1% Pennsylvania 49,307 51,429 +2,122 +43% Idaho 7,290 7,400 +110 +15% Rhode Island 4,045 3,674 -371 -9.2% Illinois 45,474 45,161 -313 -0.7% South Carolina 24,326 24,091 -235 -1.0% Indiana 28,322 29,818 +1,496 +5.3% South Dakota 3,342 3,434 +92 +2.8% Iowa 8,766 8,485 -281 -3.2% Tennessee 27,228 27,373 +145 +0.5% Kansas 8,539 8,641 +102 +1 2% Texas 172,506 171,249 -1,257 -0.7% Kentucky 21,706 21,416 -290 -1.3% Utah 6,546 6,535 -11 -0.2% Louisiana 38,381 39,780 +1,399 +36% Vermont 2,116 2,221 +105 +50% Maine 2,195 2.226 +31 +1.4% Virginia 38,276 38,081 -195 -0.5% Maryland 23,324 22,009 -1,315 -5.6% Washington 17,926 18,233 +307 +17% Massachusetts 11,408 11,156 -252 -2.2% West Virginia 6,059 6,367 +308 +5 1% Michigan 48,738 45,478 -3,260 -6.7% Wisconsin 23,380 23,112 -268 -1.1% Minnesota 9,910 10,064 +154 +16% Wyoming 2,084 2,075 -9 -0.4% Mississippi 22,754 21,521 -1,233 -5.4% - - -- • - - State total 1,408,830 1,404,053 -4,777 -0.3% Missouri 30,186 30,792 +606 +20% - - - -- - Federal(BOP) 201,280 208,118 +6,838 +34% Montana 3,607 3,605 -2 -0.1% -' - - -- - - -! - - Nebraska 4,520 4,490 -30 -0.7% National total I 1,610,110 1,612,071 2,061 +0.1% Noce:Percent orange is from December 31.2008 to lanua ty 1,2010 u 'ess otherwise noted n the Jur A coon al notes at tees of this brief SOU BCE'.December 31.2008 count is Iton'Pi»ners In 200$and reflects Bureau of Just ce Stamm tics lur sd,clonall count January I.2010 if Public Safety Performance Protecqursdcfonal roan'.. Prison Count 2010: State Population Declines for the FirstTme in 38Years 7 Endnotes 2010 figures compiled by the Pew Center on the States in 21 JEA Institute,"Reforming Mississippi's Prison System,"Public Safety partnership with the Association of State Correctional Administrators. Performance Project,Pew Center on the States,The Pew Charitable 2008 figures are from the U.S.Department of Justice,Bureau of trusts(2009),http>/www_pewcenteronthestatesorg/uploadedFiles/ Justice Statistics.See'Jurisdictional Notes"for details. wwwpewcenteronthestatesorg/Initiatives/PSPP/MDOCPaper. Pdf?n=8407_ 2 Patrick A.Langan,John V.Fundis and Lawrence A.Greenfeld, "Historical Statistics on Prisoners in State and Federal Institutions, 22 Ibid. Yearend 1925-86,"U.S.Department of Justice,Bureau of Justice 23 Langan,Dr.Patrick A.,and Dr.David J.Levin,'Recidivism of Statistics,(1988),15. Prisoners Released in 1994,'U.S.Department ofJustice,Bureau of 3 Alfred Blumstein and Allen J.Beck,'Reentry as a Transient State Justice Statistics(2002),httplibis.ojp.usd0j.gov/content/pub/pdf/ Between Liberty and Recomittment"In Jeremy Travis and Christy rpr94.pdf. Visher(Eds.),Prisoner Reentry and Crime in America(Cambridge,UK: 24 Public Safety Performance Project.'Work in the States:Nevada," Cambridge University Press,2005),50-79. Pew Center on the States,The Pew Charitable Trusts(2008).http✓/ 4 Langan,Fundis and Greenfeld,"Historical Statistics on Prisoners in www.pewcenteronthestates.org/uploadedFiles/Nevada(1).pdf. State and Federal Institutions,Yearend 1925-8Q'U.S.Department of 25 Council of State Governments,Nevada Justice Reinvestment Brief, Justice,Bureau of Justice Statistics. [forthcoming]. S Public Safety Performance Project,One in 100:Behind Bars In America 26 Sourcebook of Criminal Justice Statistics Online,httpJwww.albany. 2008,Pew Center on the States,The Pew Charitable Trusts(2008), edu/sourcebook/pdf/t422008.pdf. http//www.pewcenteronthestates.org/uploadedPiles/8015PCTS_ 27 Ibid. Prison08_FINAL_2-1-1_FORWEB.pdf. 28 Lauren E.Glaze and Thomas P.Bonczar,"Probation and Parole in 6 State projections were reported in Public Safety,Public Spending: the United States,2008,"U.S.Department ofJustice,Bureau of Justice Forecasting America's Prison Population,2007-2011,Public Safety Performance Project,Pew Center on the States,The Pew Charitable Statistics(2009),http//bjs.ojp.usdoj.gov/contenVpub/pdf/ppuse8.pdf. Trusts(2007),http!/www.pewcenteronthestates.org/uploadedFiles/ Public Safety Performance Project,One in 31:The Long Reach of Public%2oSafety%20Public%20Spending.pdf_ American Corrections,Pew Center on the States,The Pew Charitable lrusts(2009),htp>/www.pewcenteronthestates.org/uploadedFiles/ 7 Ibid. PSPP_I in3l_report_FINAL_W EB_3-26-09.pdf. 8 William J.Sabol,Heather C.West and Matthew Cooper,"Prisoners in 29 Timothy A.Hughes,Doris James Wilson and Allen J.Beck,"1-rends in 2008,'U.S.Departmentof Justice,bureau of Justice Statistics(2009),16, State Parole,1990-2000,"U.S.Department of Justice,Bureau of Justice hap',//bjs.ojp-usdoj.gov/contenVpub/pdf/pOB.pdf. Statistics(2001),13,httplitfis.ojp.usdoj.gov/content/pub/pdf/tsp00. 9 Ibid. pdf. 10 Ibid. 30 Ibid. 11 U.S.Department ofJustice,Bureau ofJustice Statistics 31 Alex R.Piquero,David P.Farrington and Alfred Blumstein,Key Issues 12 Joan Petersilia,"Research Supports the Parole Violation Decision in Criminal Career Research:New Analyses of the Cambridge Srudy in Making Instrument"httpi/www.cdecca.gov/PVDMI/support_4_PVDMI. Delinquent Development(Cambridge,UK:Cambridge University Press, html. 2007),143-149. 13 California Department of Corrections and Rehabilitation,'Why 32 Christopher J.Mumola and Allen J.Beck,"Prisoners in 1996,"U.S. CDCR developed a Parole Violation Decision Making Instrument Department ofJustice,Bureau of Justice Statistics(1997),3,http://bis. (PVDMI),"http//www_cdcr.ca.gov/PVDMI/. ojp.usdoj gov/content/pub/pdf/p96.pdf. 14 Coleman v Schworzenegger,2009 WL 2430820(N D.Cal and E D.Cal. 33 United States Sentencing Commission,20085ourcebook of Federal August 4,2009). Sentencing Statistics(2009),http>/www.ussc.gov/ANNRPT/2008/FigA. pdf. 15 Michigan Department of Corrections,"FY 2011 Budget Proposal and Updated Prison Bed Space Projections Trends in Key Indicators 34 William J.Sabol and Heather Couture,"Prison Inmates at Midyear and Impact from Proposed Legislative Changes"(presentation to the 2007,"U.S.Department of Justice,Bureau of Justice Statistics(2008), Senate Appropriations Subcommittee on Judiciary&Corrections, http?/bjsojp-usdoj.gov/contenVpub/pdf/pim07.pdf. February 16,2010,Lansing,Michigan. 35 Baselice&Associates,Texas Voter survey#07090,April 1-4, 161bid- _ 2007(1,000 registered Texas votes,margin of error+3196,level of confidence 95%). 17 Council of State Governments,"Justice Reinvestment in Texas: Texas Center for Public Policy Research,80th Legislative Session Assessing the Impact of the 2007 Justice Reinvestment Initiative" Survey,April 5-70,2007(602 registered Texas voters,margin of error (2009),http>/www.pewcenteronthestates.org/uploadedFiles/TX_ -399%,level of confidence 95'S5). Impact_Assessment_April_2009(4).pdf. 36 Public Safety Performance Project,One in 31 18 Ibid. 37 Ibid. 19 U.S.Department of Justice,Bureau of Justice Statistics:Public Safety Performance Project,Pew Center on the States,The Pew 38 Ibid. Charitable Trusts. 39 International Centre for Prison Studies,'World Prison Brief,"Kings 20 Miss.Code Ann.§5 47-7-3,47-5-138 and§47-5-139(June 30,1995) College,London,http://www.kcl.ac.uk/depsta/law/research/icps/ and Miss.Code Ann.§47-7-3(April 7,2008). worldbrief/wpb_stats.php?area=all&category=wb_poptotal_ 8 Public Safety Performance Project I Pew Center on the States scic Iona Notes Unless noted below,the state prisoner counts used in this brief for January 1,2010 were reported to the Association of State Correctional Administrators(ASCA)by each state's Department of Corrections(DOC)in a survey conducted for the Public Safety Performance Project(PSPP)of the Pew Center on the States.Prisoner counts reflect the total standing population under the jurisdiction of the DOC.Unless otherwise noted,state prisoner counts for December 31,2008 were taken from Appendix Table 2 of the Department of Justice,Bureau of Justice Statistics'(BJS)"Prisoners in 2008"report.Additional follow-up confirmed that the ASCA/PSPP count for January 1,2010 was made using the same methods as the BJS year-end 2008 count. 'H3urisdiction Notes Federal(BOP) 1/1/2010 count is fromDecember 2009. Georgia Prisoner counts reflect custody population. Hawaii 1/1/2010 prisoner count is from 12/31/2009. Kansas 1/1/2010 prisoner count is from 12/31/2009. Idaho Prisoner counts include out-of-state inmates held in Idaho. Indiana Prisoner counts include juvenile populations. Maryland 1/1/2010 prisoner count is from 12/31/2009. Massachusetts 1/1/2010 prisoner count excludes out-of-state,federal,and U.S.Marshall inmates. Minnesota 1/1/2010 prisoner count is from 7/1/2009.12/31/2008 count was adjusted,per DOC instruction, due to improper counting methods. Nebraska Prisoner counts reflect custody population. Nevada 1/1/2010 prisoner count is from 1/5/2010. North Dakota 1/1/2010 prisoner count is from 12/31/2009.Prisoner counts exclude out-of-state and federal inmates. Oklahoma 1/1/2010 prisoner count is from 12/31/2009.Prisoner counts do not include inmates in early release programs. Pennsylvania 12/31/2008 prisoner count was adjusted,per DOC instruction,because inmates held in private facilities, local jails,federal facilities,and other states were erroneously double counted. Rhode Island 1/1/2010 prisoner count is from 12/31/2009 Texas 1/1/2010 prisoner count is from 12/31/2009. Virginia 1/1/2010 prisoner count is from 1/6/2010. Prison Count 2010: State Population Declines for the FirstTime in 38 Years 9 1Hk _w ee >, \‘ CENTER ON THE STATES The Pew Center on the States is a division of The Pew Charitable Trusts that identifies and advances effective solutions to critical issues facing stint s_ Pew is 3 nonpiof7t organization that applies a rigorous, analytical approach to improve public policy. inform the public and stimulate civic life. www.pewcenteronthestates.org Page 1 of 4 Newsweek How The Recession Hurts Private Prisons America's constantly booming prison population has seemed like a good business to be in, but even that is slowing with the economy. by Nancy CookJune 30, 2010 {'a _ S ' ' � �,. v rz. , . ��4, i ii W t st/Nm� „ s p. �R - N` , "nX41', _.. Al Goldis /AP A 2005 image of the inside of the privately run Michigan Youth Correctional Facility, in Baldwin, Mich. The prison has since been closed Baldwin, Mich., (population 1 ,107), will soon have more prison beds than full-time residents. On the outskirts of town, one of the country's largest private prison companies recently spent $60 million to expand a former juvenile prison into a 1,755-bed facility meant to house illegal immigrants before deportation. This is the same town where every summer locals gather for a carnival nicknamed Troutarama at which teenage girls vie for the crown of Ms. Lake County. Thirty-two percent of Baldwin's families live below the poverty line, in a state with a 13.6 percent unemployment rate, compared to the national unemployment rate of 9.7 percent. Baldwin residents were counting on the private prison to create jobs, but this past March, the federal government pulled back its funding on the bid. This left the Geo Group, Inc., with an empty fortress in the middle of rural Michigan, 85 miles north of Grand Rapids. I A a_ t http://www.newsweek.com/2010/06/30/how-the-recession-hurts-private-prisons.print.html 7/1/2010 Page 2 of 4 NATIONAL PRISON POPULATION From 1987 to 2007,the national prison population tripled 851 198/ 2007 A similar scenario is playing out across the country, in states such as California, Oklahoma, and Colorado, where entire private prisons now sit vacant. The Huerfano County Correctional Facility in Colorado and the Diamondback Correctional Facility in Oklahoma temporarily shut their doors this spring after the state of Arizona stopped sending prisoners out of state in an effort to save money. Cornell Companies, one of the three largest private prison operators in the U.S., expects two of its California prisons to remain empty through 2010, while 11,600 of Correction Corporation of America's beds were unoccupied as of early May. The empty prisons are not a result of the number of inmates dropping. In fact, according to the Pew Public Safety Performance Project, the number of inmates rose in 2007 in Arizona, Ohio, Kentucky, Mississippi, and Florida. Instead, the empty beds are because state corrections agencies are crowding prisoners into more facilities as they do in California, or trying to change legislation to make sentencing less harsh for nonviolent criminals. The private prison industry's reliable mix of housing state and federal inmates and illegal immigrants—a model that helped to fuel two decades of growth—is no longer a surefire way to get rich. "There are only so many places you can find people," says Martin F. Horn, a former commissioner with the New York City Department of Correction and a lecturer at the John Jay College of Criminal Justice. Though it's certainly not disappearing and there are signs of a potential recovery for the sector, the private corrections business is under financial pressure to change its business plan, and as that happens, prison advocates worry that the industry and it's bottom-line approach will come to dominate other areas of the justice system. Rather than worrying about upping the number of inmates, private prison companies are tapping into overseas markets and offering a wider range of services. GEO increased its revenue by $20.2 million in the last year by opening up prisons in Australia and the United Kingdom, while also eyeing contracts in South Africa and New Zealand. Cornell runs halfway houses and youth prisons and has noticed an uptick in the demand for drug treatment, housing, or job placement programs that help prisoners reenter society. "The challenge for reentry is funding," says James Hyman, CEO and president of Cornell Companies. "If states can't fund programs for their star college graduates, how do they fund programs for the prisoners?" http://www.newsweek.com/2010/06/30/how-the-recession-hurts-private-prisons.print.html 7/1/2010 Page 3 of 4 PRIVATE PRISON BUSINESS HOUSES 2000 2010 The private prison business experienced a similar watershed moment starting in the late 1990s and into early 2000. Shares of private prison companies then traded at roughly $2.50 (today, a share of GEO or CCA can easily sell for anywhere between $21 and $29), CCA also had thousands of empty beds, and the industry as a whole faced scandals over its treatment of prisoners. Twelve former prison guards in Texas had been indicted for sleeping with female prisoners, while a juvenile prison in Louisiana lost its contract after the U.S. Justice Department charged its guards with beating and throwing tear gas at the boys housed there. But two major events saved the industry. The Federal Bureau of Prisons saw an uptick in its number of prisoners (from 1987 to 2007, the national prison population tripled, from 585,084 to 1,596,127, according to a report by the Pew Center on the States), and then post-9/11, the Bush administration began to detain more immigrants and house them at a patchwork of private facilities across the United States. The industry's political connections have also likely helped ensure its longevity. The boards of directors for GEO and CCA read like a who's who from past administrations and include both Republicans and Democrats. GEO board member Norman Carlson served as the director of the Federal Bureau of Prisons for 17 years. CCA's board boasts Thurgood Marshall Jr., former cabinet secretary to President Bill Clinton and son of the late Supreme Court justice, as well as former U.S. senator Dennis DeConcini, Democrat of Arizona, who, during his 18-year tenure in Congress, served on the judiciary and appropriations committees. DeConcini says he has never lobbied on behalf of CCA, though he did, as a board member, attend a meeting with the director of the Arizona Department of Corrections and has publicly spoken in favor of the private prison business. During the 2008 election cycle, the political action committees of GEO, Cornell, and CCA, the three largest companies, were also generous, donating a total of roughly $679,000 to political groups and politicians from key states where they are courting new business, including Arizona, California, Louisiana, and Florida. "The private prisons companies know how to play the legislative game," says Michael Jacobson, director of the Vera Institute of Justice. As the economy recovers, both industry stock analysts and executives from Cornell and CCA say business is cylical and will rebound (GEO did not want to comment on the record). The private prison business now houses just under 9 percent of U.S. prisoners, compared to 6 percent in 2000, says Damon Hininger, president and CEO of CCA. Though it's unclear where the new business will come from, Hininger points to several options. California's budget crisis could actually prove to be a boon to business, since its prisons already are so overcrowded. http://www.newsweek.com/2010/06/30/how-the-recession-hurts-private-prisons.print.html 7/1/2010 Page 4 of 4 The Federal Bureau of Prisons recently announced that it's looking for a few thousand additional beds, and private prison executives argue that they operate 10 to 20 percent cheaper than state-run facilities, in part because they do not have to contend with the salaries and benefits of state correctional officers' unions. (Corrections unions, for their part, say that makes the private prison guards less qualified and trained to deal with criminals and less prone to oversight.) "When I think about the future constraints on state governments, the fact that we can build quickly and cheaply only increases our value," says Hyman of Cornell Companies. The only part of the story left is the prisoners themselves. As David Fathi of the ACLU National Prison Project points out, "Prisoners cannot decide they don't like where they live." Because the private prison business does not follow the same rules as the rest of the market, in which consumers voice their preferences through what they buy, the question of how and where we house prisoners becomes merely an issue of economics. And for the private prison companies, the answer so far has been lucrative—as private prison executives are confident it will continue to be. Find out more about the social and economic impact of America's prisons in our series. Read about the debate over whether cash-strapped states should cut classrooms or prison cells, and find out why we should treat drug addicts in prison. http://www.newsweek.com/2010/06/30/how-the-recession-hurts-private-prisons.print.html 7/1/2010 Cor rporation of America-News Release 7/22/10 12:53 PM Print Page Close Window News Release CCA ANNOUNCES ARIZONA NOTIFICATION NOT TO RENEW CONTRACT AT HUERFANO COUNTY CORRECTIONAL CENTER NASHVILLE, TN,Jan 27, 2010 (MARKETWIRE via COMTEX) -- CCA (Corrections Corporation of America) (NYSE: CXW), the nation's largest partnership corrections provider to government agencies, announced today that it has received notification from the Arizona Department of Corrections of its election not to renew its contract at CCA's 752-bed Huerfano County Correctional Center in Colorado, which is scheduled to expire on March 8, 2010. Arizona expects to begin transferring offenders from the Huerfano facility beginning on March 10, 2010 and expects to complete the transfer on March 22, 2010. As a result of this notification, CCA will idle the Huerfano facility shortly thereafter, but will continue marketing the facility to other customers. Last week, CCA reported that Arizona budget proposals would phase-out the out-of-state private prisons, and the risk that CCA could lose the opportunity to house offenders from Arizona at its Huerfano and Diamondback facilities during 2010. To date, we have not received any updates from Arizona regarding its contract at our 2,160-bed Diamondback Correctional Facility in Oklahoma. The contract with Arizona at our Diamondback facility is scheduled to expire on May 1, 2010. About CCA CCA is the nation's largest owner and operator of partnership correction and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. We currently operate 65 facilities, including 44 company-owned facilities, with a total design capacity of approximately 87,000 beds in 19 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re- entry into society upon their release. We also provide health care (including medical, dental and psychiatric services), food services and work and recreational programs. Forward-Looking Statements This press release contains statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) general economic and market conditions, including the impact governmental budgets can have on our per diem rates and occupancy; (ii) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, increases in cost of operations, fluctuations in interest rates and risks of operations; (iii) our ability to obtain and maintain correctional facility management contracts, including as a result of sufficient governmental appropriations and as a result of inmate disturbances; (iv) changes in the privatization of the corrections and detention industry, the public acceptance of our services, the timing of the opening of and demand for new prison facilities and the commencement of new management contracts; (v) risks associated with judicial challenges regarding the transfer of California inmates to out of state private correctional facilities; and (vi) increases in costs to construct or expand correctional facilities that exceed original estimates, or http://ir.correctionscorp.com/phoenix.zhtml?c=117983&p=irol-newsArticle_print&ID=1379865&highlight= Page 1 of 2 Con operation of America-News Release 7/22/10 12:53 PM the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as weather, labor conditions and material shortages, resulting in increased construction costs. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by us with the Securities and Exchange Commission. CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release. Contact: Karin Demler - Investors 615-263-3005 Louise Grant - Media 615-263-3106 SOURCE: Corrections Corporation of America http://ir.correctionscorp.com/phoenix.zhtml?c=117983&p=irol-newsArticle_print&ID=1379865&highlight= Page 2 of 2 COLORADO DEPARTMENT OF CORRECTIONS MONTHLY POPULATION AND CAPACITY REPORT as of June 30,2010 2-Ja1-10 6302_010 I 6/30/10 630%09 OPERATIONAL ON-GRDS OFF-GRDS TOTAL OPERATIONAL ON-GRD CAPACITYn1 POPULATION POPULATION POPULATION CAPACITY(�) POPULATI COLO STATE PEsIlENTIARY 756 747 4 751 756 753 CENTENNIAL CORR FAC 336 317 2 319 336 311 STERLING CORR FAC 1545 1521 21 2,542 2.545 2,531 LIMON CORR FAC 951 945 6 951 953 940 ARK VALLEY CORR FAC 1.007 1.001 10 1,011 1-007 1.002 BUENA VISTA CORRFAC 920 913 15 928 926 890 BUENA VISTA MIIN CTR 292 255 35 290 292 288 COLO TERR CORR FAC 936 905 18 923 944 915 FORT LYON CORK FAC 500 479 7 486 500 482 FREMONT CORR FAC 1.661 1.638 20 1,658 1.661 1.645 LA VISTA CORR FAC 519 514 4 518 519 493 ARROWHEAD CORR CTR 494 491 2 493 494 492 FOUR MR-F CORR CTR 499 495 3 498 499 496 TRINIDAD CORR FAC 484 479 6 485 484 471 S.T.L.at LA VISTA 30 24 1 25 30 17 SKYLINE CORR CTR 249 249 0 249 249 246 COLORADO CORR CTR 150 150 1 151 150 148 DELTA CORR CTR 484 464 2 466 484 480 RIFLE CORR CTR 192 192 0 192 192 191 COLO CORR ALT PROGRASf' 0 0 1 1 100 80 DENVER WOMI3N S CORR FAC 976 956 7 963 976 891 DENVER REC DIAL CTR 480 503 12 515 480 477 SAN CARLOS CORR FAC 255 249 4 253 255 246 """SUBTOTAL""" 14.716 14.487 181 14.668 14,832 14.485 CONTRACTS. BENT COUNTY CORR CIA 1 385 17 L402 1,374 CROWL,EY COUNTY CORR FAC 1.641 19 1.660 1,635 KIT CARSON COUNTY CORR FAC 1.001 14 1,015 1,274 CHEYENNE MTN REENTRY CTR 713 5 718 743 HIGH PLAINS CORR FAC 0 0 0 279 OFT-GROUNDS POPULATION: 236 231 ESC.APEES:W'AI Y AWA1S 243 215 REVOCATIONS-JAIL 0 0 JAIL BACKLOG: BACKLOG LESS THAN 72 HOURS 89 41 BACKLOG GREATER THAN 72 HOURS(FISCAL 17D AVE-1041 160 42 BACKLOG-PAROLEES AWAITLVG TRANSFER 87 71 TOTAL JAIL BACKLOG 336 154 COUNTY JAIL.CONTRACTS 0 15 CONDICNTIY CORRECTIONS COVLVIINTfY RESIDENTIAL 1.570 1.570 1,558 L558 NON-RESIDENTIAL 115 115 105 105 PAROLE REVOCATIONS 0 0 0 REVOKED-RET TO CUST 243 104 347 274 274 REGRESSIONS 40 40 35 35 TOTAL CONDIUNTP/ 1.813 259 2.072 1,972 1,972 ISP RESIDENTIAL 704 704 757 757 NON-RESIDENITAL 37 37 40 40 REGRESSIONS 5 5 _ TOTAL ISP 704 42 746 799 799 TOTAL COMM.CORRECTIONS 2.517 301 2,818 2.771 2,771 MALE POPULATION 20,766 20.896 FEMALE POPULATION 2,094 2,290 "TOTAL INMATE JURISDICTIONAL POPULATION" 22,860 23,186 1)OPERATIONAL CAPACITY INCLUDES ALL BEDS AVAILABLE FOR USE.INCLUDING MANAGEMENT CONTROL LNTTS.BUT EXCLUDES EMERGENCY DOUBLE BUNKING. (('COLD CORR ALT PROGRAM LAST CLASS GRADUATED ON 05:27 2010.THE 1 OFFENDER OFF-GROUNDS IS EN A COUNTY JAIL AWAITING SENTENCE RECONSIDERATION The TO Group. Inc. - Investor Relations - Press Release Page I of CC ® Print Page Cl��c Nurduw The GEO Group. Inc. Press Release The GEO Group Announces 1,100-Bed Expansion of the 400-Bed Aurora ICE Processing Center in Colorado BOCA RATON. Fla.--(BUSINESS WIRE)--Oct. 15, 2007--The GEO Group, Inc. (NYSE:GEO) ("GEO") announced today the expansion of the 400-bed Aurora ICE Processing Center (the "Center") located in Aurora, Colorado. GEO will begin a 1 ,100-bed expansion of the company-owned Center in the fourth quarter of 2007 and expects to complete construction in the third quarter of 2009. The expansion is expected to cost approximately $72.0 million. GEO owns and manages the Center under contract with U.S. Immigration and Customs Enforcement ("ICE"). Once completed, GEO expects the 1,100 expansion beds to be used by federal detention agencies. The expansion will increase the Center's capacity to 1,500 beds. At 90 percent occupancy, GEO expects the 1,100-bed expansion to generate approximately $30.0 million in additive annualized operating revenues. George C. Zoley, Chairman of the Board and Chief Executive Officer of GEO, said, "The expansion of the Aurora ICE Processing Center will play an important role in addressing the need by federal agencies for detention bed space around the country. This represents the second expansion project of the 11 facilities we purchased in our acquisition of CentraCore Properties Trust in early 2007. We are continuing our reviews of what we believe are several additional opportunities to grow our available bed capacity through expansion of our owned facilities." The GEO Group, Inc. ("GEO") is a world leader in the delivery of correctional, detention, and ret i r treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, Canada, and the United Kingdom. GEO's worldwide operations include 68 correctional and residential treatment facilities with a total design capacity of approximatey 59,000 beds. This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward -looking statements contained in this press release include, but are not limited to: (1) GEO's ability to successfully pursue further growth and continue to enhance shareholder value; (2) CEO's ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with CEO's ability to control operating costs associated with contract start-ups; (4) CEO's ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO's operations without substantial costs; (5) GEO's ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO's ability to obtain future financing on acceptable terms; (7) CEO's ability to sustain company-wide occupancy rates at its facilities; and (8) other factors contained in GEO's Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports. CONTACT: The GEO Group, Inc., Boca Raton Pablo E. Paez, Director, Corporate Relations 1-866-301-4436 SOURCE: The GEO Group, Inc. http://phx.corporate-ir.net/phoenix.zhtml?c=91331&p=irol-newsArticle_print&ID=106283... 7/1 2,'010 I he Gh.O Group_ Inc. - Investor Relations - Press Release Page ? of? • • (,A1 i.nib ion Rr1 in E(I : 1 i, statenienrs In this mess rely !.. ....:! . .. -.c. °,cs. L iv net ",rt ncal a “LL fi,. 1J laokir y statements" 'dui R ; , (, , s an risks a LI "II{h c olid 531St actual results to ddfel mem, x: lii,e Li( tic Company s Annual Report http://phx.corporate-ir.net/phoenix.zhtml?c=91331&p=irol-newsArticle print&ID=106283... 7/12/2010 ( orrections Lorporation ot America - News Kelease rage t 01 z r ` Print Page Clc; News Release CCA ANNOUNCES RECEIPT OF PREVIOUSLY ANTICIPATED ARIZONA NOTIFICATION NOT TO RENEW CONTRACT AT DIAMONDBACK CORRECTIONAL FACILITY NASHVILLE, TN, Mar 16, 2010 (MARKETWIRE via COMTEX) -- CCA (Corrections Corporation of America) (NYSE: CXW), the nation's largest partnership corrections provider to government agencies, announced today that it has received notification from the Arizona Department of Corrections of its election not to renew its contract at CCA's 2,160-bed Diamondback Correctional Facility in Oklahoma, which is scheduled to expire on May 1, 2010. Arizona expects to begin transferring offenders from the Diamondback facility beginning in May 2010 and expects to complete the transfer in June 2010. As a result of this notification, CCA intends to idle the Diamondback facility shortly thereafter, but will continue marketing the facility to other customers. In January, CCA reported that Arizona budget proposals would phase-out the out-of-state private prisons, and the risk that CCA could lose the opportunity to house offenders from Arizona at its Huerfano and Diamondback facilities during 2010. Later in January we announced that we received notification from Arizona of its election not to renew its contract at CCA's Huerfano facility and that we would idle the Huerfano facility in late March 2010. CCA's 2010 guidance, made at the time of its year-end earnings release, included the anticipated loss of the Arizona contract at the Diamondback facility. About CCA CCA is the nation's largest owner and operator of partnership correction and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. We currently operate 65 facilities, including 44 company-owned facilities, with a total design capacity of approximately 87,000 beds in 19 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. We also provide health care (including medical, dental and psychiatric services), food services ar work and recreational programs. Forward-Looking Statements This press release contains statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995.These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i)general economic and market conditions, including the impact governmental budgets can have on our per diem rates and occupancy; (ii)fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, increases in cost of operations, fluctuations in interest rates and risks of operations; (iii) our ability to obtain and maintain correctional facility management contracts, including as a result of sufficient governmental appropriations and as a result of inmate disturbances; (iv)changes in the privatization of the corrections and detention industry, the public acceptance of our services, the timing of the opening of and demand for new prison facilities and the commencement of new management contracts; (v) risks associated with judicial challenges regarding the transfer of California inmates to out of state private correctional facilities; and (vi) increases in costs to construct or expand correctional facilities that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as weather, labor conditions and material shortages, resulting in increased construction costs. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by us with the Securities and Exchange Commission. CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release. http://ir.correctionscorp.com/phoenix.zhtml?c=1 17983&p=irol-newsArticle_print&1D=14... 3/19/2010 t orrectlons 1.orporation of America - News Itctcasc Page 2 of 2 • nu:.s. r ...... - ,,i_ 3-253-31G; SOURCE: Corrections Corporation of America http://ir.correctionscorp.com/phoenix.zhtml?c=1 17983&p=irol-newsArticle jDrint&ID=14... 3/19/2010 ---- -- -- � • �• �� ^� ���!�u�'� nrrp- !r.Correchonscom.com%phoenis.Ahtml7c I I79,43R'p irol-neus.4r. > Pont Page Close '.`. Nevc, Release CCA ANNOUNCES A CONTRACT AWARD AT CiBOLA COUNTY CORRECTIONS CENTER AND THE LOSS OF CONTRACT AT CALIFORNIA CITY CORRECTIONAL CENTER NASHVILLE, TN, Jan 13, 2010 (MARKETWIRE via COMTEX) — CCA (Corrections Corporation of America) (NYSE: CXW), the nation's largest partnership corrections provider to government agencies, announced today that pursuant to the Federal Bureau of Prisons' ("BOP") Criminal Alien Requirement 10 Solicitation ("CAR 10") our Cibola County Corrections Center in Milan, New Mexico was selected for the continued management of up to 1,204 adult male offenders Pursuant to the same CAR 10 procurement, the BOP did not select CCA's 2,304-bed California City Correctional Center in California City, California for the continued management of the federal offenders currently located at this facility. The current contract with the BOP at the California City facility expires on September 30, 2010. CCA will establish a transition plan with the BOP for these inmates. CCA is pursuing other opportunities for our California City facility which may restrict housing non-federal inmates at privately owned correctional facilities located in California The contract award at our Cibola facility has an anticipated effective date of October 1, 2010, and has an initial four-year term with three two-year renewal options, and contains a take or pay provision of 90 percent. The company will reflect the impact of these contract changes in its 2010 earnings guidance, which it expects to provide in February at the time of announcement of year-end results for 2009. Commenting on the announcement, Damon Hininger, President and CEO, said, "We are pleased to continue our partnership with the Federal Bureau of Prisons at our Cibola County Corrections Center, and are obviously very disappointed that our California City Correctional Center was not selected for the continued management of BOP inmates. The BOP is a long-standing valued partner of ours and we will work with them to ensure a smooth transition out of our California City facility." Hininger continued, "I am extremely proud of the dedicated staff at both facilities as they have done an outstanding job managing these inmate populations. We believe the BOP's decision to not continue the management contract at California City was based primarily on escalating federal wage determination costs in California, and does not reflect the quality of operations our company and staff have provided to the BOP." About CCA CCA is the nation's largest owner and operator of partnership correction and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. We currently operate 65 facilities, including 44 company-owned facilities, with a total design capacity of approximately 87,000 beds in 19 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. We also provide health care (including medical, dental and psychiatric services), food services and work and recreational programs. Forward-Looking Statements This press release contains statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) general economic and market conditions, including the impact governmental budgets can id? 2/14/2010 10 ;1 AM rinr1• r rnrrecnorccorp_convnhocnn_ilnml°c 11798Vmp=irol-nc«(Ar... have on our per diem rates and occupancy: (ii) fluctuations in our operating results because of. among c' things, changes in occupancy levels competition, increases in cost of operations, fluctuations in interest rates and risks of operations. (iii) our ability to obtain and maintain correctional facility management contracts. including as a result of sufficient governmental appropriations and as a result of inmate disturbances. (iv) changes in the privatization of the corrections and detention industry. the public acceptance of our services, the timing of the opening of and demand for new prison facilities and the commencement of new management contracts; (v) risks associated with judicial challenges regarding the transfer of California inmates to out of state private correctional facilities: and (vi) increases in costs to construct or expand correctional facilities that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as weather, labor conditions and material shortages, resulting in increased construction costs Other factors that could cause operating and financial results to differ are described in the filings made from time to time by us with the Securities and Exchange Commission. CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release. C.cnt act : Karin CeamLer Investors 615-263—?.i;0 Louise Grant Media 615-263-3106 SOURCE: Corrections Corporation of America of? 2/14/2010 10:31 AM I- Asa.: ` Print Page CP? _. 1N'evv, Rclr,l,c CORRECTIONS CORPORATION OF AMERICA TO CEASE OPERATIONS AT PRAIRIE CORRECTIONAL FACILITY NASHVILLE, TN, Dec 04, 2009 (MARKETWIRE via COMTEX) -- Corrections Corporation of America (NYSE CXW) ("CCA"), the nation's largest provider of corrections management services to government agencies, announced today its intention to cease operations at the CCA-owned and operated Prairie Correctional Facility located in Appleton, Minnesota. The 1,600-bed facility will officially cease operations on or about February 1. 2010 During 2009, the Prairie facility has housed offenders from the states of Minnesota and Washington. However, due to excess capacity in the states' systems, both states have been reducing the populations held at Prairie. The facility currently houses about 200 offenders from the state of Minnesota. The state of Washington has removed all of its offenders from the Prairie facility, but maintains a population of approximately 125 inmates in two CCA-owned facilities in Arizona. The closure of the Prairie facility is not expected to have a material impact on CCA's financial results. Damon Hininger, President and CEO of CCA commented, "It is CCA's strong desire to continue every effort to market the facility to another government partner, which we believe provides a viable option for our partners needing significant capacity. We are committed to finding the right opportunity that will allow us to re-open Prairie, so we can continue to offer meaningful careers to our dedicated staff, and promote economic vitality to the Appleton community." Mr Hininger continued, "We are disappointed to make the decision to close the Prairie Correctional Facility Unfortunately, without an inmate population large enough to significantly utilize the facility, maintaining operations at the Prairie facility isn't economically viable. I would like to thank our outstanding and dedicated staff who have done an exceptional job, and we look forward to resuming operations at the facility at some point in the future." About CCA CCA is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. We currently operate 65 facilities, including 44 company-owned facilities, with a total design capacity of approximately 87,000 beds in 19 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. We also provide health care (including medical, dental and psychiatric services), food services and work and recreational programs. Forward-Looking Statements This press release contains statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) general economic and market conditions, including the impact governmental budgets can have on our per diem rates and occupancy; (ii) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, increases in cost of operations, fluctuations in interest rates and risks of operations; (iii) our ability to obtain and maintain correctional facility management contracts, including as a result of sufficient governmental appropriations and as a result of inmate disturbances; (iv) changes in the privatization of the corrections and detention industry, the public acceptance of our services the )12 2' 1 2010 10.40 AM • timing of the opening of and demand for new prison facilities and the commencement of new management contracts Ivl risks associated with judicial challenges regarding the transfer of California inmates to out of st.-.�' private correctional facilities and 'oil increases in costs to construct or expand correctional facilities that exceed original estimates or the rriabtlity to complete such projects on schedule as a rehult of various factors many of which are beyond our control such as weather. labor conditions and material shortages resulting in increased construction costs. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by us with the Securities and Exchange Commission. CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release Contact Karin Demler Investor Relations 615-263-3005 SOURCE: Corrections Corporation of America of? 2'14:2010 10:40 rAM I he TO-A) liroup_ Inc. - Investor Relations - Press Release Pane 1O1 2 , Print Page Close Wiccow The GEO Group, Inc. Press Release The GEO Group Announces 1,225-Bed Expansion of the 500-Bed North Lake Correctional Facility in Baldwin, Michigan BOCA RATON, Fla., May 01 , 2008 (BUSINESS WIRE) -- The GEO Group, Inc. (NYSE:GEO) ("GEO") announced today plans for a 1,225-bed expansion of the 500-bed North Lake Correctional Facility (the "Facility") located in Baldwin, Michigan. The expansion of this company-owned Facility, which is currently idle, will increase the Facility's total capacity to 1,725 beds. GEO expects the 1 ,225-bed expansion to cost approximately $60 million and to be completed by the second quarter of 2009. GEO expects to market the Facility to federal and state agencies around the country. George C. Zoley, Chairman of the Board and Chief Executive Officer of GEO, said, "We are planning to move forward with the expansion of our North Lake Correctional Facility, which we believe will position GEO to help meet the increased demand for correctional and detention beds by federal and state agencies around the country. We look forward to the successful completion of this important expansion and to the reactivation of this company-owned Facility." GEO expects to restructure its existing credit facility by the end of 2008 to support its current capital projects including the expansion of the North Lake Correctional Facility. GEO can add up to $150 million in borrowing capacity through an accordion feature in its existing credit facility. The GEO Group, Inc. ("GEO") is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, Canada, and the United Kingdom. GEO's worldwide operations include 67 correctional and residential treatment facilities with a total design capacity of approximately 60,000 beds. This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward -looking statements contained in this press release include, but are not limited to: (1) GEO's ability to secure a management contract with a client to operate the North Lake Correctional Facility on satisfactory terms, or at all; (2) GEO's ability to obtain up to $150 million in additional borrowings under its existing credit facility to support the expansion of the North Lake Correctional Facility as well as its current capital projects on satisfactory terms, or at all; (3) GEO's ability to successfully pursue further growth and continue to enhance shareholder value; (4) CEO's ability to access the capital markets in the future on satisfactory terms or at all; (5) risks associated with GEO's ability to control operating costs associated with contract start-ups; (6) GEO's ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO's operations without substantial costs; (7) GEO's ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (8) GEO's ability to obtain future financing on acceptable terms; (9) GEO's ability to sustain company-wide occupancy rates at its facilities; and (10) other factors contained in GEO's Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports. SOURCE: The GEO Group, Inc. http://phx.corporate-ir.net/phocnix.zhtml?c=91331&p=irol-newsArticle print&ID=113814... 7/12/2010 Ile ltl'.lJ croup. Inc. - Investor Ketaions - Press Kelease rage z or The GEO Group, Inc., Boca Raton Pablo E. Paez, Director, Corporate Relations 1-866-301-4436 Silk, ifatho;. Such :nt 11I1(i,•r tflc i`I..r.i,' :)eti.tri.ei Litigation Relotrli Act of 1995. Statements in this press release regarding The GEO Group. Inc.'s business which are not historical facts are"forward-looking statements"that involve risks and uncertainties. Fm it discussion of such risks and uncertainties. which could cause actual results to differ from those contained in the forward looking statements. see-Risk Factors'.in the Company's Annual Report or Form 10 K for the must rcceritiy ended fiscal veal. http://phx.corporate-ir.net/phoenix.zhtml?c=913 31&p=irol-newsArticle_print&1 D-113814... 7/12/2010 2/14/2010 Department of Corrections and Rehabili... CALIFORNIA DEPARTMENT of • V CORRECTIONS AND REHABILITATION Pr CALIFORNIA DEPARTMENT of fi �° ;' CORRECTIONS ANDN E 11/%1 _ •- i ;. . `., REHABILITATION From the •� Office of Public and Employee -v-4 Communications Stay Connected For Immediate Release Contact: Gordon Hinkle / Terry Thornton (916) 445-4950 Facebook Twitter October 26, 2009 as VouTube Flidtr CDCR to Close Three Community Correctional Facilities Due to , MySpace Downward Trend in Low-Security Inmates Request CDCR Star Share I Print I Email Move would save $15.2 million Receive Sacramento — Due to a significant decrease and anticipated decline in low-security inmates, the California CDCR Star Department of Corrections and Rehabilitation (CDCR) is closing three privately run Community Correctional in your email Facilities (CCFs). everyday! "There are a number of factors for the downward trend in lower-level inmates entering the system, including Click to subscribe recent parole reforms that authorize minor parole violators to be diverted to community programs instead of prison," said Undersecretary of Operations Scott Kernan. "Meanwhile. CDCR prisons continue to face overcrowding for medium and maximum security inmates, who serve longer sentences, and due to public safety risks, are not eligible for low-security housing provided by these facilities. " News This past year, the state prison population has dropped by nearly 5,000 inmates, from approximately 172,200 to about 167. 350. Approximately half of the drop in population were low-security level inmates. > Communications Home Page "In the prison system, population management is extremely complicated with a number of factors that go into » Press Releases determining where inmates can be placed," added Keman. "The reality is there is a segment of the inmate population which requires housing in a celled environment and cannot be placed in a lower-level facility due to » Press Office Contacts their time to serve, conviction history or institutional behavior. " » List of Public Information Officers CDCR today issued 60-day notices to Cornell Corrections, which operates the Baker Community Correctional Facility in Baker and the Mesa Verde Correctional Facility in Bakersfield, and to the GEO Group, which operates '> Resources for Media the McFarland Community Correctional Facility in McFarland. The contracts for the three facilities was set to >> Links Archive --------------------expire on June 30, 2010 and provided a combined 822 low-custody beds. The department will issue an Invitation for Bid in early November to use private facilities for an alternative population, such as female inmates. California law authorizes CDCR to contract with public and private entities to house low-custody inmates in community correctional facilities. There are 5,913 beds in 13 community correctional facilities statewide; however, 1 ,200 of them are empty, Earlier this year, the department sent a team of inmate classification and custody experts on a statewide evaluation of inmates who may be safely housed in CCF beds. That search confirmed there was not enough who qualified for CCF placement. The department also deactivated more than 1 , 000 lower-level beds in CDCR's system to address the changing demographics of the inmate population. Closing the Baker, Mesa Verde and McFarland community correctional facilities will save $12.7 million in contract dollars and an additional $2. 5 million by eliminating 22 state positions by redirection or layoffs of staff assigned to monitor those facilities These Community Correctional Facilities cannot house inmates who are sex offenders, inmates serving a life sentence, or inmates who are disabled, need mental health treatment or have a chronic illness. CDCR houses minimum-security inmates in minimum support facilities at state prisons and conservation camps. www.cdcr.ca.gov/News/.. ./Oct_26.html 1/; The GEO Group, Inc. - Investor Relations - Press Release Page 1 of 1 se ,.mow_ Print Page Close Window The GEO Group. Inc. Press Release The GEO Group Comments on Cancellation of CAR 9 BOCA RATON, Fla., Mar 02, 2010 (BUSINESS WIRE) -- The GEO Group (NYSE:GEO) ("GEO") commented today on the cancellation by the Federal Bureau of Prisons ("BOP") of the Criminal Alien Requirement 9 Solicitation ("CAR 9"). GEO had submitted its expanded 1,755-bed North Lake Correctional Facility (the "Facility") in Baldwin, Michigan under the CAR 9 Solicitation. GEO had undertaken a 1,225-bed expansion of the existing 530-bed Facility, and the expansion is expected to be completed in 2010. George C. Zoley, Chairman and Chief Executive Officer of GEO, said, "We are disappointed by the BOP's decision to cancel the CAR 9 Solicitation due to a funding shortfall. The BOP is a valued client of GEO's, and we look forward to continuing our partnership with the agency at our existing BOP contracted facilities. We will continue to market our expanded North Lake Facility to federal, state, and local detention and correctional agencies around the country." The GEO Group, Inc. ("GEO") is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom. GEO's worldwide operations include the management and/or ownership of 62 correctional and residential treatment facilities with a total design capacity of approximately 60,000 beds, including projects under development. This press release contains forward-looking statements regarding future events and future performance of CEO that involve risks and uncertainties that could materially affect actual results, inc/uding statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward -looking statements contained in this press release include, but are not limited to: (1) CEO's ability to successfully pursue further growth and continue to enhance shareholder value; (2) CEO's ability to access the capita/ markets in the future on satisfactory terms or at all;(3) risks associated with CEO's ability to control operating costs associated with contract start-ups; (4) CEO's ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into CEO's operations without substantial costs; (5) CEO's ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) CEO's ability to obtain future financing on acceptable terms; (7) CEO's ability to sustain company-wide occupancy rates at its facilities; and(8) other factors contained in CEO's Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports. SOURCE: The GEO Group The GEO Group Pablo E. Paez, Director, Corporate Relations, 1-866-301-4436 "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release regarding The GEO Group, Inc.'s business which are not historical facts are "forward-looking statements"that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year. http://phx.corporate-ir.net/phoenix.zhtml?c=91331&p=irol-newsArticle_print&ID=139751... 7/12/2010 3/14/2010 Untitled Document I Print Article Print This Story iiernando County sheriff considers taking over jail operations By HERNANDO TODAY STAFF After researching the matter, Sheriff Richard Nugent believes he can take over operations of the Hemando County Jail and save the county money. Due to the current economic condition of the county and the continually rising cost of the county's contract with Corrections Corporation ofAmerica (CCA) to operate the jail, Nugent said Tuesday he has conducted research into the possibility of his office assuming the task. The sheriffwill make a presentation to county commissioners at their meeting next Tuesday. According to a press release, Nugent met with several sheriffs office jail administrators throughout Florida, showing that his office can provide a better and more efficient service while reducing the County's cost of operating the jail. Hernando County's contract with CCA includes an automatic increase of 1 percent or the current consumer price index-- whichever is greater a by Oct. 1, 2010. The CPI currently stands at 2.8 percent. Nugent said he can operate the jail at the county's current budgeted amount, allowing the county to avoid the contractual increase of almost 3 percent currently in place. Additionally, the current jail contract does not guarantee a fixed cost for the operation of the jail, as an increase in inmates would increase the cost to the county. With his department operating the jail, an increase in the number of inmates will not increase the cost to the county, he said. After a flurry of last-minute proposals and counterproposals, county commissioners last September voted 5-0 on a new two-year pact with CCA that continued that 20-year partnership. The county also won several concessions from the operator, including a reduction in the daily per diem rate from$59.46 to $53, which began Oct. 1. Jail costs are expected to be about $11.3 million, down from$11.4 million During contract talks with CCA, the subject of the sheriff taking over operations at the jail were broached. The possibility also came up during last year's budget deliberations. 'We wanted to see if there were any other options out there that could save us money,"County Commissioner John Druzbick said Tuesday. 'There are other counties that are doing it. Now how they are doing it and whether it is saving them money is what we are wanting to know." 1/2 COLORADO PRIVATE CORRECTIONAL FACILITY 2009 ASSESSMENTSAND OCCUPANCY Bent County settled with CCA on the value of the 1,466 bed Bent County Correctional Center at $39,000 per bed. This facility had occupancy on December 31, 2009 of 90.1% and as of June 30, 2010 the occupancy was 95.6%. Kit Carson County offered to settle with CCA on the value of the 1,488 bed Kit Carson County Correctional Facility at $41,000 per bed. CCA rejected the offer. In 2008 the County and CCA agreed on an assessment of$44,640 per bed. The County offered a further reduction in 2009 and CCA rejected it as not enough. The facility had occupancy on December 31, 2009 of 83.3% and as of June 30, 2010, the occupancy was 68.2%. The Crowley County Correctional Facility is assessed based on $37,347 per bed. The occupancy as of December 31, 2009 was 91.1% and as of June 30, 2010 the occupancy was 92.5%. The Cheyenne Mountain Re-Entry Center is assessed based on $21,204 per bed. The occupancy as of December 31, 2009 was 81.5% and on June 30, 2010 the occupancy was 95.7%. The Aurora Ice Processing Center was assessed based on $23,950 per bed (the addition was not complete). The occupancy at that facility stays above 95%. The Huerfano County Correctional Center was assessed based on $39,229 per bed, however for the tax years 2007 and 2008 the Board of Assessment Appeals reduced the assessment to $37,072 per bed. As of December 31, 2009 the facility was over 90% occupied with Arizona State inmates. It is now vacant. The High Plains Correctional Facility was assessed based on $17,899 per bed. The occupancy as of December 31, 2009 was 80.1%. It is now vacant. 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