Wayne County Executive Warren Evans
held a news conference Monday
morning during which he discussed
the status of the Gratiot Avenue
jail site and the offer from Dan
Gilbert. (Click on Detroit
screenshot)
JAIL
UPDATE:
County
to focus
on
contract
with
Rock,
but work
remains
Efficiency
of
Larger
Jail,
Mitigated
Risk,
Cost
Comparison
Key
Factors
DETROIT
– Wayne
County
Executive
Warren
C. Evans
today
provided
an
update
on the
status
of the
two
proposals
to
address
the
County’s
unfinished
jail
project.
On June
28th,
the
County
received
proposals
from
Walsh
Construction
to
finish
building
the jail
on the
Gratiot
site and
from
Rock
Ventures
to build
the
County a
new
criminal
justice
center
on an
alternative
site.
“While
both
proposals
remain
options,
I’ve
directed
my team
to
dedicate
their
time and
resources
toward
attempting
to reach
a
contract
with
Rock
Ventures,”
Evans
said.
“The
Rock
Ventures
proposal
has more
upside,
less
risk and
a
smaller
financial
gap than
Walsh
Construction’s
proposal.
There
are,
however,
many
issues
to
resolve
with
Rock
Ventures
before I
could
recommend
the
approval
of a
contract
to the
County
Commission
and the
County
Building
Authority.”
In the
coming
weeks,
Executive
Evans’
team
will
work
with
Rock
Ventures’
representatives
to
negotiate
terms of
a deal
to
create a
new
criminal
justice
center.
If
negotiations
with
Rock
cannot
result
in a
contract
in the
best
interest
of
County
residents
and
taxpayers,
the
County
Executive
has 120
days
from
June
28th,
the date
Walsh
submitted
its
proposal,
to
commence
negotiations
to
complete
the jail
at the
Gratiot
site.
Cost
Comparison,
Risk
Mitigation
Factor
Heavily
Analysis
of the
Walsh
proposal
raises
concerns
it would
likely
cost as
much if
not more
to
finish
the
Gratiot
jail and
renovate
the
Frank
Murphy
Hall of
Justice
than the
County’s
contribution
to the
Rock
Ventures-proposed
criminal
justice
center.
The
total
likely
cost,
combined
with the
Walsh
proposal
putting
the
County
at risk
for cost
overruns
unlike
the Rock
proposal,
factored
heavily
in the
decision
to focus
on
Rock’s
proposal.
Walsh
Construction’s
proposal
includes
two jail
options
at
Gratiot,
with
approximately
1,608
beds at
$269
million
and
2,200
beds at
the cost
of
$317.6
million,
which
does not
include
the cost
of
renovating
the
Frank
Murphy
Hall of
Justice,
which is
estimated
to cost
$36
million.
The
total
cost of
the
Walsh
proposal
with the
renovations
to Frank
Murphy
is
estimated
to be
about
$353
million.
Rock
Ventures’
proposal
offers
to build
the
County a
new
criminal
justice
center
with a
2,280
bed
jail,
criminal
courthouse,
prosecutor
offices,
sheriff
administrative
offices
and a
juvenile
detention
facility
at a
total
approximate
cost of
$520.3
million
with the
County
responsible
for $380
million
plus the
cost of
acquiring
land
from the
City of
Detroit
bounded
by the
I-75
Service
Drive,
E.
Warren
Ave., E.
Ferry,
Russell
and
Frederick.
Rock
Ventures
would
bear the
responsibility
and risk
for all
cost
overruns.
Benefits
of
Larger
Jail
Outweigh
Additional
Capital
Costs
Both
proposals
provide
for
increased
bed
capacity
to allow
the
closing
of the
Division
III
jail, as
well as
Divisions
I and
II. The
increased
capacity
from
1,600 to
2,200 or
2,280
beds
costs
between
$55 to
$60
million
for
either
project.
The
annual
operational
savings
to the
County
from an
expanded
jail
will
more
than
offset
the
additional
capital
costs in
constructing
a larger
jail. A
study
performed
by CGL,
the
County’s
consultant,
estimates
an
annual
savings
of $7.2
million
a year
by
closing
Division
III, and
this
analysis
includes
the
initial
capital
costs of
building
the
larger
jail.
“Based
on where
we are
today
and
looking
to the
future,
it makes
sense
for the
County
to spend
the
additional
money
for the
expanded
jail,”
Evans
said.
“The
County’s
improved
finances
and
credit
rating
have
given us
the
option
of
financing
the
larger
project
in order
to
achieve
this
long-term
benefit.”
IRS
Bonds,
Land
Acquisition
Remain
Obstacles
Rock
Ventures’
proposal
contemplates
building
the
criminal
justice
center
on a
site
currently
owned by
the City
of
Detroit.
The
County
will
continue
to work
toward
an
agreement
with the
City of
Detroit
for
purchase
of the
land as
it also
awaits
an IRS
determination
on a
closing
agreement
which
provides
for the
use of
the jail
bonds at
a site
other
than
Gratiot,
and
specifically,
Rock
Ventures’
proposed
site.
Either
of these
issues
could
present
obstacles
to
finalizing
a
contract
with
Rock
Ventures.
In
addition
to
approving
a
definitive
agreement
with
Rock
Ventures
to build
the
criminal
justice
center,
the
Wayne
County
Commission
would
need to
approve
the
purchase
of the
City of
Detroit’s
property
and the
County
Building
Authority
would
need to
approve
the
closing
agreement
with the
IRS for
resolution
of the
use of
the jail
bonds.
“Over
the past
few
weeks
we’ve
made
progress
with
both
Rock
Ventures
and the
City of
Detroit
and
we’ll
continue
those
efforts,”
Evans
said.
“Having
a new
criminal
justice
center
is the
better
option,
but
there
remain
significant
obstacles
that
need to
be
resolved.
We will
continue
to work
tirelessly
to
address
them.”