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HomeMy Public PortalAbout19920203 - SPECIAL MEETING MINUTES - 1992-02 TOWN OF AULT BOARD OF TRUSTEES SPECIAL ?MEETING 92-02 FEBRUARY 3, 1992 SPECIAL MEETING MINUTES OF THE SPECIAL MEETING OF COUNCIL HELD THIS EVENING AT 7:00 P. M. PRESENT: TRUSTEE RAU TRUSTEE HOVEL TRUSTEE SHEETS TRUSTEE HOOVER TRUSTEE HOFF TRUSTEE LUCERO MAYOR GIECK ALSO PRESENT: CLERK LESH ONE AUDIENCE MEMBER MAYOR GIECK PRESIDED PRE-PAROLE FACILITY Mayor Gieck presented the memorandum from Russell B. Caldwell, providing information on the possibility of 111 locating a pre-parole facility in Ault. The facility will house up to 300 inmates in a full lock-up facility. The facility will coat B to 10 million dollars to construct and will create approximately 60 jobs averaging 025, 000 per job in annual salaries and wages. The group will be preparing a formal response to a "Request for Proposal" from the Colorado Department of Correction. They are willing to submit their response solely with Ault, but only with Ault 's authorization to do so. Their team includes: 1 ) MTC Corporation - An Ogden, Utah company engaged in operating correctional facilities on a contract basis nationwide. 2) NCA (National Correctional Associates of Denver) - Kip Kautsky is a consultant to NCA. NCA's role in the project is to be the facility monitoring entity for purchases of securities issued to construct the facility. 3) Dougherty, Dawkins, Strand & Bigelow Inc. - Denver and Minneapolis based investment bankers. Dougherty Dawkins' role is to locate purchasers for not-for-profit corporation securities issued to construct the facility. PAGE ONE 1992, FEBRUARY 3 The Town of Ault must be willing to sponsor the project by issuing tax-exempt obligations through a qualified not-for- profit corporation. Any such obligation would not in any way constitute a debt or obligation of the Town. Additionally, the Town would be required to reasonably cooperate in planning, zoning and development approvals for the project. Under their structure, the facility would be owned by a not- for-profit corporation, but would pay property taxes. Attached to the back of these minutes is a description of the pre-parole facility. Mayor Gieck explained the first time MTC was in Ault, approximately one and one half years ago, the proposal went to Adams County, Commerce City. Adams had to have a County referendum, and in the election it was voted down. The State Department is reissuing a request for proposal for the second time. Dougherty, Dawkins, Strand & Bigelow Inc. would like to use Ault as the city for their proposal. This special meeting tonight is to vote to determine if they can use Ault for their proposal. There are probably six other proposals going in this time. This is the first step toward this project. Trustee Rau asked if they were looking along the lines of building where the first facility was started originally? Mayor Gieck stated that it was premature at this time to answer that question. Mayor Gieck stated that he has been checking out the entities included in this proposal. Doughery, Dawkins, Strand & Bigelow is a banking concern that is very reputable. Mayor Gieck stated that sae Woo had been contacted concerning the previous prison site, and also, Thorton had been contacted concerning land. Larry Linke with the State Department of Correction, said they figure S4, 631, 000. 00 dollars to put this facility in operation. Mayor Gieck explained the State Prisons are now at capacity and they can not continue to build State Prisons. California and other states are moving pre-parole prisoners to these private facilities for rehabilitation for the last eighteen months of their term. These private prisons are able to be constructed at a lesser cost. The program will be concentrated on the site and will not involve community activities outside the facility. The main reason they favor an Ault location is because of the close proximity of Aims College, Northern Colorado Medical Facility, and two Universities. PAGE TWO, FEBRUARY 03, 1992 Trustee Sheets presented the question, "What will the Town of Ault gain from this?" Mayor Gieck stated the main gain would be the creation of sixty jobs creating housing needs, groceries purchases, enrollment in the RE9 School District, and taxes. Trustee Hovel questioned if the employees must live in the immediate area? Mayor Gieck explained that it is premature at this time to answer this. If Ault is the location picked for this facility, then these incidental item can be negotiated. Dr. J. T. Thompson asked how does the Town sponsor the project by issuing tax-exempt obligations through a not-for-profit corporation? Mayor Gieck explained that the Building Authority would take care of a bond issue. Trustee Hovel asked why the last prison proposal did not go through. Mayor Gieck said that several concessions were made, prison site was started, and after he returned from vacation they were negotiating every little item and the Town submitted a list of things they had to do before any more work commenced. E'rom that time on relations were strained. Governor Roemer was elected. He would not allow state prisoners to be put in private prisons. Trustee Sheets asked what the difference was now. Mayor Gieck said the situation does not exist now. Governor Roemer now favors these private pre-parole prisons. Trustee Sheets asked where the building authority comes up with these tax- exempt bonds? Mayor Gieck explained investors buy the bonds. Trustee Hovel explained that Dougherty Dawkins locate purchasers for not-for-profit corporation securities issued to construct the facility. The Ault Building Authority authorizes them to do that. Dougherty Dawkins seek investors. Investors receive certain breaks. Trustee Hovel wanted to know what they are asking of the Board. Mayor Gieck explained that they want to know whether they can use Ault in the proposal. That does not really obligate Ault. If this thing would go, you can still negotiate the proposal. This facility may be located in Ault Town limits or outside of the Town. Mayor Gieck also advised that after the last prison proposal 8000 signatures were collected opposing a prison any place in Weld County. The State Department told us at that time, that next time you should keep it within your Town limits, you should have your election within your Town limits. With that in mind the Town probably has land within the Town limits. They evidentially are interested in cheaper land that Thorton has available. At 7:25 P. M. the Board reviewed the video tape of the model pre-parole prison in California. The meeting reconvened at 7:45 p. m. PAGE THREE, FEBRUARY 3, 1992 Trustee Rau questioned if they would ask the Town for concessions? Mayor Gieck replied that it was premature to answer that, however based on the prior prison yes, they probably would. Trustee Hovel said he would look at it as to what's in it for Ault. Mayor Gieck explained that in the eight years he has been Mayor there has not been one industry that looked at Ault for establishing. He also explained that when they previously looked at other prison towns they all had the stablest economies of most other towns in the respective states. Trustee Hovel said residential growth would be a favorable outcome if they had to locate in Ault. J. T. Thompson asked if Mayor Gieck got the sense that they were simply asking the Town Board if the Town is so embittered by their previous experience with the prison that they wouldn' t be interested? And, if there was an interest, then that 's what they want to know? Mayor Gieck responded, "he told everyone that he talked to that we do not want another million dollar set of foundations on our borders. If it has no possibility at all, we do not even want to be considered. They were impressed and didn't feel that in this area a referendum would be necessary. They had the figures from the previous poll of a three to one count of the Town being in favor of a prison. When Mayor Gieck asked Why Ault? Their first response was Aims Community College for the following reasons: Aims could train their staff etc. They were also impressed with the nearness of two more Universities, the area, inexpensive ground from Thorton maybe. The thing to remember if we turn them down, that ends it. If you are able to work something out it may just be the thing that gets Ault started. At the time the other prison was a possibility there were four or five industries that wanted to establish here. There would be some employees establish in Ault which in turn causes residential development and school enrollment increase, and might help with business development. He added that any decision you make might be criticized, but that he would rather be criticized for trying, than for not trying. Tonight this is so initial, there will be many chances down the line to make considerations and decisions. It would make sense tonight to say go ahead, and then see what happens at the next step. " Trustee Hovel commented that he was going to vote against this because he sees a prison as a last effort for a Town. He feels once you commit to being a prison town you jeopardize further residential growth. He doesn't feel a prison would be beneficial to Ault. PAGE FOUR 1992, FEBRUARY 3 Trustee Hoover said he would vote no because he replied negative to last prison survey. He lives in this town because he likes the size of it. He doesn't like the criminal eliminate. Any rental housing in the area will be occupied by the families of the pre-parole prisoners, and if they should get a job, they might stay in our community, and there is a chance they will be back in prison within two years. At the conclusion of the discussion, MOTION WAS MADE BY TRUSTEE LUCERO, to authorize Dougherty Dawkins to submit their formal response to a "Request for Proposal" to the Colorado Department of Corrections with solely Ault for the location. The question was called for. RECORDED VOTE AS FOLLOWS: YEAS: TRUSTEE RAU, SHEETS, LUCERO, MAYOR GIECK 4 NAYS: TRUSTEE HOVEL, HOOVER, HOFF 3 MOTION CARRIED BY A VOTE OF FOUR TO THREE. Mayor Gieck expressed his feeling that he couldn't help but think this is the right thing to do. He would hope that the Board would look at all the documents that come in the future. He also feels that the new Board should be given a chance at this. With there being no further business the meeting adjourned. Trustee Hoff then presented his equipment maintenance check list, along with mileage and time record. ie &_,Ly ,,,,, bt-..,..„1„) MAYOR R. ED AR GIECK ATTEST: III PATRICIA J. LESN, TOWN CLERK PAGE FIVE 1992 FEBRUARY 3 1