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Capitalizing on Lease-Purchase Initiative for Prison Construction

NCJ Number
129657
Journal
Corrections Today Volume: 53 Issue: 2 Dated: (April 1991) Pages: 90,92,94,95
Author(s)
G Gauger; C Pulitzer
Date Published
1991
Length
4 pages
Annotation
In April 1990, the Pennsylvania legislature approved the lease-purchase initiative as a means to construct additional prison cells and to respond to the problem of crowded prisons.
Abstract
Several reasons contribute to the attractiveness of the lease-purchase option: institutions can be ready for occupancy within three years rather than the five years required for the conventional construction process; a shortened construction program schedule is economical; close control on program development can be maintained; outside consultants can be employed to develop the design and oversee construction that otherwise would have necessitated a diversion of limited architectural and engineering resources; and the construction program can be phased which makes capital expenditures more predictable and manageable on a yearly basis. Enabling legislation authorized the lease-purchase of a 1,000-cell maximum security prison and two 1,000-cell medium security prisons. Both phases of development and the construction schedule are outlined. The design/build lease-back approach allows for contracting developer/lessors to build each new facility and then lease the completed prisons back to the State on an agreed upon rate. The State operates the prisons and after a specified number of years can buy the facilities.

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