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CCA 2012 letter to governors to purchase state prisons

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I am writing to brief you in advance about a new program - the CCA corrections investment
Initiative - that we plan to begin discussing with you and other key decision-makers in the State of
Oklahoma in the coming weeks. In short, CCA is earmarking $250 million for purchasing and
managing government-owned corrections facilities. The program is a new opportunity for federal,
state or local governments that are considering the benefits of partnership corrections.
As you know, CCA has built upon a three-decade reputation of private-sector excellence by
constructing and managing new corrections facilities for our government partners and by entering
into management contracts for operations at existing facilities. We're proud to consistently deliver
safe and efficient operations and high quality educational and rehabilitation programming for
inmates and detainees under our care.
Our decision to earmark funds for the purchase and management of existing government facilities
follows our success last year in Ohio with the groundbreaking acquisition of the 1,798-bed Lake Erie
Correctional Facility in Conneaut. On Jan. 1, 2012, we assumed ownership and management
responsibility in a transition described by all parties as seamless. This transfer culminated a process
that, according to state officials, generated more than $72.7 million in proceeds for Ohio taxpayers,
about $50 million of which was allocated for the Ohio Department of Rehabilitation and
Correction. Estimated annual savings in corrections operations are placed at $3 million.
At the same time, CCA is enhancing efficiencies and modernizing the systems of the Lake Erie
facility. We're also pleased that over 93% of the facility's staff were retained by CCA and will
continue working at the facility. Ultimately, Ohio will enjoy the full economic development benefits
of a public-private partnership that accompanies a CCA-owned facility, including the payment of
property and sales taxes, potential for further job growth, and vitality to the local economy.
We want to build on that success and provide our existing or prospective government partners with
access to the same opportunity as they manage challenging corrections budgets. Interested parties
would execute the sale to CCA and enter into a long-term management contract of 20 years or
Physical requirements for facilities that would be eligible for purchase by the fund would include:

A minimum rated occupancy of 1,000 beds;
A structure age of no more than 25 years;
A designation that the structure is suitable for immediate occupation or is already
occupied by an inmate population; and
An assurance by the agency partner that the agency has sufficient inmate
population to maintain a minimum 90 percent occupancy rate over the term of the

CCA has worked very hard to develop the most innovative and well-respected public-private
partnerships within our field, which enables us to offer this opportunity to current or potential
partners and the taxpayers they serve. We're proud that with this program CCA has enhanced its
ability to meet our government partners' needs through any combination of construction,
acquisition and daily management. We believe this comes at a timeiy and helpful juncture and
hope you will share our belief in the benefits of the purchase-and-manage model.
Please feel free to call or contact me directly at (615) 263-3001 if you have any questions,
comments or interest. I would be delighted to hear from you.
Meanwhile, please accept my best wishes for a great 2012.