Jail financing plan holds complexities for county, city
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By JEAN ORTIZ / Lincoln Journal Star
City and county leaders got down to business Tuesday, just a day after the City Council approved exploring a plan to help the county pay for a $65 million jail.
But there are many details that city, county and Public Building Commission officials have yet to work out.
The commission kicked off what is likely at least a two-month process by authorizing bond counsel to begin preparing bond documents and lease agreements tying all three entities to the project.
Each entity will still have to approve formal resolutions putting any agreement into effect.
The commission also created a steering committee made up of representatives from the County Board, City Council, mayor’s office and Public Building Commission that will begin addressing the agreement details.
That committee will be expected to meet in the next week and gather as needed over the next several weeks.
After Councilman Jon Camp raised concerns — including what the city’s liability will be when it comes to renovating the downtown jail, possibly for courtroom space — commissioners agreed there are no trivial questions.
“There are probably questions we’ve never thought about, but we’ve got to start somewhere,” County Commissioner Larry Hudkins said.
County leaders chose the joint-financing plan as their next best option after voters rejected a bond issue in May that would have financed the project over 26 years.
County commissioners wanted the longer-term financing to hold down property tax spikes.
The joint-financing plan, if approved, will have the Public Building Commission issuing the bonds for the construction and allow the county to finance the project over 20 years.
The commission would then sign the city and county to long-term leases.
The commission, which manages public property for the city and county, was created for such a purpose. Similar joint-financing deals have been approved in the past, including most recently a major renovation to the health department’s building on O Street.
The only money the county expects to get from the city is what the city already is paying to use the jail. Over the past five years, that figure has averaged about $1.4 million annually.
The new deal would redirect those payments toward construction debt.
The city will have to agree to pay a fixed amount to boost assurances of bond buyers. But that amount will be based on expected use of the jail, and the agreement, or possibly a separate agreement, would make provisions for adjustments.
Councilman Camp voiced concerns about the possibility of operational costs rising, but county leaders said they can’t yet say how the operations budget could change.
County Board Chairman Bob Workman has remained optimistic the county will see reduced costs, including finding savings through operating one correctional complex rather than two or selling any extra bed space.
Construction on the 664-bed complex slated for Southwest 40th and West O is expected to begin early next year. The new jail should be operational in 2010.
Reach Jean Ortiz at 473-7107 or jortiz@journalstar.com.
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KP wrote on July 9, 2008 9:03 am:
have been long ago worked out. If it wasn't for Camp they would be going
into this completely blind, which is the norm! Lincoln voters need to
stand up and scream. These people are dragging you and your hard earned
money thru the mud like a bunch of kindergartners. This is just plain
scary!!! "
Alan wrote on July 9, 2008 11:18 am: