There are two issues that were brought up at the HOA meeting
with ICE and CCA that should be discussed. The first is taxes. CCA should
contribute their fair share of property taxes, a good portion that would go to
our local schools. CCA says they fully expect to pay their
obligation of taxes once the facility is up and operational. Our research has shown that if past dictates
present, CCA will use one or more means of tax avoidance to get out of this
obligation.
One example is where they’ve used real estate tax shelters,
until they became a hindrance to their growth. Another time, in 2002, the
federal government sued CCA for $54 million after they discovered CCA was using
tax loopholes to avoid paying federal taxes. In another example, in Cleveland,
Ohio, the city and county gave CCA more than a 50% tax abatement for 3 years,
but that wasn’t enough for CCA, they wanted more ; the county said no and CCA
pulled out of the contract because they didn’t want to pay their share of local
taxes. At a facility in KS CCA paid
their taxes under protest, arguing that 90% of the prison should be
reclassified as residential.
The second and most disturbing
issue is town indemnification. CCA told
us the town will be fully indemnified in the new contract. This is the insurance we need as a town to
protect us from the liability and costs that would come from a prison riot or
an escape. Without insurance, we are
liable. CCA is not being honest with us.
The truth is they won't – and can't indemnify us. The claims can be hard
to enforce and the insurance may be unobtainable. There is growing evidence
that private prison companies may not be able to secure full liability
insurance for themselves, much less their jurisdictions.
In one SEC filing, Cornell Corrections was unable to secure
insurance for some business risks including riots, civil commotions and the
acts of an escaped offender. Hamilton
County TN called for $25 million insurance policy to protect the county from
liability. After the contract had been
signed, the county learned CCA did not have this amount nor were they able to
secure it through an insurance company. In another example, the District of
Columbia sued CCA for breach of contract when they found out they weren’t
covered either.
A Private prison will only increase indemnification costs or
hold harmless agreements between the town and CCA. These may not be enforceable
and the ultimate liability will lie with the town and taxpayers.
Our town should not be putting us in this kind of position
where we may lose money or be held liable for costs incurred from an escape or
injury/death related to that escape. No matter what they tell us, chances are CCA
will not be able to indemnify our town. And neither will anyone else. Our
mayor, Town Council and Town Attorney should be protecting this town and its
residents, instead they’re throwing us under the bus.
ACLU Foundation of Chicago. “Prisons
for Profit: A Look at Prison Privatization.”
16 January 2012
Under the bus is exactly where we will be. They don't care about the town, only themselves. SWR is next
ReplyDeleteWhat an excellent article about the real risks our town is taking. Why won't the town councilmen protect us?
ReplyDelete