You are here

Financial Market Turmoil Delays Controversial McLennan Jail

The controversial new CEC jail in Waco has been delayed due to trouble issuing revenue bonds to finance the project. According to an article in the Waco Tribune ("Rough financial markets delaying construction of new McLennan jail," November 19),

McLennan County commissioners Tuesday postponed for the third straight week issuing project revenue bonds to finance the new jail because of high bond interest rates. Community Education Centers, the New Jersey-based company that is to oversee the new jail’s construction and operation, would be responsible for paying the interest on bonds the county sells to third-party financial houses.

County Judge Jim Lewis said officials had hoped to break ground for the new jail this month. However, the county is waiting to see whether the financial markets stabilize, allowing for reasonable bond interest rates. In the meantime, Lewis said, the project cannot go forward. He did not know how long the county would hold out on issuing the bonds.

“We could sell these bonds today if we wanted to, but we’d be selling them for 10 percent interest or more,” Lewis said, citing the stock market’s large fluctuations in the last week. “If we tell (CEC) that we’re selling for that high of interest, they’d say there is no way they can make this work. So it would be a prudent business decision to wait and see how the market does.”

The new jail would be privately run by CEC, which currently operates the downtown jail. The 816-bed jail would be built next to the present county-run jail on State Highway 6 and would help alleviate some jail overcrowding issues plaguing McLennan County. The new facility will cost about $37.4 million and will take 12 to 14 months to complete, according to Hale Mills Construction Ltd., the jail’s builder.

See our previous coverage of the McLennan County jail struggle:

Blogging Categories: 

Comments

Why is that at the root of many financial problems, it's the big shot CEO's in the middle of it all? Doesn't this tell us something.

the entire construction market has taken a back seat to most other projects in this country. it doesnt surprise me that a prison would be sent to the back of the line in this bond market. its not like we need to keep our prisons safe or anything. (note sarcasm)

County Judge Jim Lewis said officials had hoped to break ground for the new jail this month. However, the county is waiting to see whether the financial markets stabilize, allowing for reasonable bond interest rates. "Best way is to share your home office with others especially peers in the same industry. That way it gives you the busy atmosphere without the environment. "

The new jail would be privately run by CEC, which currently operates the downtown jail. The 816-bed jail would be built next to the present county-run jail on State Highway 6 and would help alleviate some jail overcrowding issues plaguing McLennan County. The new facility will cost about $37.4 million and will take 12 to 14 months to complete, according to Hale Mills Construction Ltd., the jail’s builder. "Maintenace of new jail"

great job on that article. thanks for the information. www.thelonex.com

Yeah its sad to say that economy can even have an affect on public safety. I live in San Diego California and due to the state budget crises they are talking about letting inmates out early.

Thank you for the great job done. It would be great if you would push more to use the raw data that you make available for visual purpose to the people that are able to handle it and show some apps that can play with those data.