Clearing trees on MAT-SU prison site this sum

"We're moving forward with the prison project," Duffy said. "Our goal is to turn dirt in June. I suspect July."

The agreement lays out planning for the design, construction, and financing of the MAT-SU prison. It gives direction on the preparation of the design/build proposal. A request for proposal likely will be advertised in late spring.

The prison site was selected last year off Alsop Road near Point MacKenzie. The project is part of a regional expansion of prisons across the state. The prison project size is smaller than originally planned with an expected 1,536 beds. Some design changes will take place as well. No longer will it be a large building, but instead a facility made up of pods or smaller units.

The project is expected to cost about more than $250 million. The prison will be financed by the sale of revenue bonds. The Department of Corrections will lease the prison from the MAT-SU Borough, operate it, and eventually own it when the lease-revenue bonds are repaid through 25 annual lease payments. The risk is not for the taxpayers but for the party who holds the bonds. However, the risk is minimal because a prison is considered an essential service. The sale of lease, revenue bonds is expected to occur in September.

The new prison at Point MacKenzie is expected to have more than 350 prison staff jobs with good pay ($48,000/year average income) and benefits. The construction and homebuilding industries will get a boost from the project. Development-related impacts are going to be smaller than what was expected with the larger prison that was originally planned at 2,251 beds.

The next step is to complete the terms of the lease as well as the terms of the next memorandum of understanding, which will cover the construction, and construction management. Duffy expects to have that before the Assembly for consideration in March.

Senate Bill 65 provided for the construction of a prison with a minimum of 1,200 beds, and up to 2,251 beds at a cost of $135,000 per bed with specific allowable adjustments.

For more information call Manager Duffy at 745-9689 or Public Affairs Director Patty Sullivan 745-9577.