Governor OKs new prison

May 19, 2006

By DARRELL L. BREESE

Frontiersman

PALMER - Plans for the Mat-Su Borough to construct a new prison, which it would lease to the state Department of Corrections, received a renewed commitment to the project from Gov. Frank Murkowski.

In a letter sent to Borough Mayor Tim Anderson and potential partners in the project, Department of Corrections commissioner Marc Antrim and Dan Fauske, executive director of Alaska Housing Finance Corporation, Murkowski indicated the state is committed to advancing the project.

&#8220I look at the proposed prison mainly as an economic development boost for the borough,” Anderson said of the plan. &#8220Moving forward with the support of the governor is going to put a lot of people to work in the Valley.”

In addition to the governor's pledge to support the project, the assembly voted unanimously Tuesday in favor of a resolution in support of bonds to finance the project.

&#8220Both actions were necessary for the borough to move forward with the plan to build a new prison,” Borough Manager John Duffy said. &#8220The resolution was needed to meet IRS (Internal Revenue Service) rules. It allows the project to move ahead and for funds spent to be reimbursed once the bonds are sold.”

According to Duffy, a series of interagency agreements needs to be completed for the borough assembly's consideration.

&#8220The plan is for Alaska Housing to serve as the project manager for the prison, and the borough will be the source of funding through revenue bonds,” Duffy said.

&#8220When completed, the state will lease the facility from the borough to make the bond payments.”

Borough staff is considering eight sites in Sutton, Meadow Lakes, Butte and Port MacKenzie areas.

Meadow Lakes assembly representative Betty Vehrs expressed concerned that the potential sites for the new prison have not been revealed.

&#8220The goal is to shorten the list down to four or five and then let the public review the list,” Duffy said. &#8220We should have the short list ready sometime in June for public hearings.”

State law allows the borough to construct a prison facility with up to 2,251 beds for up to $303 million.

After construction is complete, the borough would lease the facility to the state until the bonds were repaid, at which time ownership would transfer to the state.

&#8220The planned prison is not just going to put people to work,” Anderson said. &#8220It will also be beneficial to the local agriculture market and benefit local businesses.”

Contact Darrell L. Breese at 352-2267 or at darrell.breese@ frontiersman.com.