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$2.5 Million Settlement For Private Prison Construction Cancellation

The City of Delta Junction (City) and Alaska corporations Allvest, Inc., and Delta Corrections Group, LLC (DCG), settled a lawsuit after House Bill 149 threatened to halt private prison construction underway at Ft. Greely.

Allvest/DCG and the City commenced the building of a private prison at Ft. Greely. The House Bill proposed to cancel authorization for the building, relocating the prison to Konai, to allow construction of a National Missile Defense System. Allvest/DCG brought suit against the City for expenditures after what was referred to as a "false start." The three corporations agreed to halt the development and to pursue monetary reimbursement from the U.S. Government. A total of $2.5 million was promised Allvest/DCG in the agreement and stipulated that no further action could be brought regardless of any unforeseeable problems no matter what the circumstance. The City also stipulated to a principal payment in good faith. See: City of Delta Junction v. Allvest. Inc., Case No. 4F A 99 2173 Cl (4th Dist. Alaska April 16, 2001).

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Related legal case

City of Delta Junction v. Allvest. Inc.