Tuesday, March 6, 2012

CCA Looking to Buy a County Jail

Recently, CCA has been looking to purchase and operate existing government-run prisons, dedicating up to $250 million towards that venture.  One of the places that plan might already be coming to fruition is Hall County, GA, which just passed a resolution allowing CCA to purchase a jail it currently leases to hold immigration detainees.  The decision caught city council members off-guard, because the county commission hadn't exactly been forthcoming with the information before it signed the deal. 

The decision to sell the facility is looking like a really good deal for CCA as details emerge.  CCA is buying the jail for about $1.5 million less than what the property has been valued at, probably because it hasn't been able to maintain the prisoner population it anticipated when it initially signed the lease (owning the facility would mean they'd pay far less in the long run to keep it open).  And this isn't the only shady prison-purchasing deal going down in the Peach State.  Over in Valdosta, a private landowner is set to sell a different prison to CCA, and will earn a return of nearly 100% on his investment in just five years, far above the rate of 18% the county had earned in the previous 10 years that it owned the land.  How's that for southern hospitality?

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