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.
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MAYOR R. ED AR GIECK
ATTEST:
III PATRICIA J. LESN, TOWN CLERK
PAGE FIVE 1992 FEBRUARY 3
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