County invests over $500,000 in effort to privatize its jail

A sign with Hamilton County and CCA indicating the warden's office is seen Tuesday, June 30, 2015, at Silverdale Correctional Facility in Chattanooga, Tenn.
A sign with Hamilton County and CCA indicating the warden's office is seen Tuesday, June 30, 2015, at Silverdale Correctional Facility in Chattanooga, Tenn.
photo The cells of a ward are seen Tuesday, June 30, 2015, at Silverdale Correctional Facility in Chattanooga, Tenn.

Hamilton County is bringing in some outside legal help to privatize its jail.

In August, the county brought in consultant Public Financial Management to assist in finding private operators for a 1,600-bed facility that would be located near the privately run Silverdale detention facility. The county jail, located downtown, has an inmate capacity of 505 prisoners and has suffered from overcrowding for years.

In February, three companies said they were interested in constructing and operating a new jail on behalf of the county: Corrections Corporation of America, GEO Group and Emerald Companies. CCA has operated the Silverdale facility since 1984.

On Wednesday, commissioners voted 8-0 to approve a legal services agreement for up to $250,000 with McguireWoods LLP and Chambliss, Bahner & Stophel. Commissioner Randy Fairbanks was absent.

"They have an expertise in putting together private-public partnerships, and that's something our staff in county government doesn't do very often, and certainly not to this magnitude," Hamilton County Mayor Jim Coppinger said after the meeting. "As you can imagine, there's a whole lot of money involved in this and we needed to be able to spend this additional money for legal advice, because of what is on the table."

The measure potentially makes for the second largest investment made by the county in its quest for a new private jail.

In January, the county agreed to pay PFM $30,000 a month for up to seven months, plus a $250,000 bonus if the county signs an agreement with a private jail operator. In addition to that $460,000 agreement, the county also paid PFM $150,000 to analyze jail alternatives, develop a project schedule and assist with technical and legal advisers when the county commission hired them in August.

Tim Boyd was the only commissioner to vote in January against going forward with the private jail search, citing doubts that the money could be saved by privatizing the county jail.

At that time, Commissioner Joe Graham said it would be a "win-win" if the county can save money and a private jailer can make money.

The county is scheduled to select the winning bid for a private jail this summer.

Contact staff writer Paul Leach at 423-757-6481 or pleach@timesfreepress.com.

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