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City Agrees to Pay $2,500,000 to Private Prison Company

On April 16, 2001, the City of Delta Junction, Alaska agreed to settle a suit brought by prison officials over a failed attempt to construct a private prison at Fort Greely, Alaska.

After Fort Greely was slated for closing by a military base closing commission, Delta Corrections Group (DCG) made plans, in conjunction with the City of Delta Junction, to turn For Greely into a private prison. The plans fell through, however, when officials decided to keep Fort Greely open.

DCG sued the City of Delta Junction for damages related to the failed construction of the prison. The city agreed to settle for $2,500,000. The parties agreed, however, that should DCG be reimbursed any portion of the $2,500,000 by the United States, DCG would pay the City an amount equivalent to the reimbursement received from the United States. See: Delta Corrections Group, LLC v. City of Delta Junction, Sup. Ct., 4th Dist., Fairbanks Div., No. 4FA-99-2173 CI (2001).

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Related legal case

Delta Corrections Group, LLC v. City of Delta Junction

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