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:
- McLennan County Commission Votes for New Private Jail
- More Heat for CEC in McClennan; CLEAT Requests Investigation
More Problems for CEC/CiviGenics in McLennan County
Waco Tribune Editoralizes Against Private Jail
Sheriff's Deputies Protest Privatization Proposal
McLennan County Opposition to Privatization Proposal
McLennan County Seeking New Private Jail
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County Judge Jim Lewis said
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Prison and Economy
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