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APR confirms at least two partners behind mystery company bidding prison contract

Eddie Burkhalter

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Five companies have expressed an interest in building new prisons in Alabama, some  appear to have never built a prison, while another may have as of yet unnamed partners. 

The five companies are: The GEO Group, Inc., Corvias, LLC, Corrections Consultants, LLC, CoreCivic, Inc. and Alabama Prison Transformation Partners. 

Alabama Prison Transformation Partners is a public mystery with no records of its existence beyond the governor’s announcement.  

APR has confirmed that B.L. Harbert International and Star America Infrastructures are two of the entities behind the venture. 

Questions to Gov. Ivey’s office on Monday from APR about Alabama Prison Transformation Partners were directed to the state Department of Corrections. 

Alabama Department of Corrections public information manager Bob Horton in an email to APR wrote that Alabama Prison Transformation Partners is a Joint Venture that submitted a SOQ. Asked which businesses made up that joint venture Horton had not answered as of Monday evening. 

The company’s name is very similar to former Gov. Robert Bentley’s and Sen. Cam Ward’s, R-Alabaster, Alabama Prison Transformation Initiative, which was a failed larger $800 million plan to close 14 of the state’s 16 maximum custody prisons and build four new so called mega-prisons. 

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Lawmakers voted down the plan two years in a row, and despite trimming it down to an estimated $550 million, the House in 2017 failed to bring it to Ivey’s desk for approval. 

Sen. Ward told APR on Monday that while he’s heard of several companies on the list, but the Alabama Prison Transformation Partners isn’t one. 

I just never heard of that one,” Ward said. 

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Speaking by phone to APR,  Blake Rhodes, who handles public relations for the Birmingham-based construction company B.L. Harbert International, identified a man who was speaking by phone with a reporter as a vice president at the company. 

The man, who wouldn’t identify himself further, told APR that B.L. Harbert is one of the companies behind Alabama Prison Transformation Partners, and that New York-based Star America Infrastructures was the developer on the prison project.

A Star America company spokesman confirmed to APR by phone Monday that Star America Infrastructure is a partner in Alabama Prison Transformation Partners, but he declined to discuss the matter further.

Star America Infrastructures is a fund management company  that has partnered in at least 10 projects across the U.S., including student housing for San Jose State University, a data center in Michigan, a courthouse in Maryland, a highway bypass in Ohio, according to the company’s website.

Neither Star America Infrastructures nor  B.L. Harbert make mention of prison construction projects on company websites, and there are no news articles discussing as much.

It was unclear  how many other businesses or individuals may be partnering in Alabama Prison Transformation Partners.

That news comes as Ivey and other state lawmakers work to address the problem of violence and overcrowding in the state’s prisons, which were detailed in a report in April by the U.S. Department of Justice. 

Ivey’s plan calls for constructing three new men’s prisons to replace aging prisons, but details about which prisons are to be closed, or where the new prisons might be built, haven’t been disclosed. The Alabama Department of Corrections has said the new prisons could cost an estimated $900 million. 

Gov. Kay Ivey’s office said Monday that the Alabama Building Commission and the Alabama Department of Finance will evaluate each of the five companies and determine which will be allowed to later submit proposals to build the new prisons. 

“The first steps in my plan to revitalize Alabama’s prisons are to generate interest from qualified developer teams, and we have been successful,” Governor Ivey said. “We must continue working together to ensure that this plan is propelled forward with consistent momentum as there is a significant need for new infrastructure.”

“The Governor’s Office, my staff and project team are very pleased with the SOQ response and look forward to continuing the procurement process, as that will bring us one step closer to substantive change and transformation for prisons in Alabama,” ADOC Commissioner Jeff Dunn said in the press release. 

The Geo Group, headquartered in Florida, is one of the country’s two largest private prison companies and either manages or owns 133 facilities across the U.S. and in Australia, South Africa and the United Kingdom. The company operates prisons, immigrant detention facilities and mental health and residential treatment facilities. 

Geo Group has been sued numerous times connected to prison riots and problems at its immigrant detention centers, some of which have led to the deaths of immigrants detained there. 

In a report released in June the Department of Homeland Security found serious safety problems and violations of immigrants rights at Geo Group-operated immigrant detentions centers in California, Colorado and Louisiana. 

Corrections Consultants LLC is owned by Nashville businessman Doctor Robert Crants Jr., who was one of the co-founders of Corrections Corporation of America, which later changed names to CoreCivic. 

Crants in May agreed to repay Louisiana-based LCS Corrections Services $2 million as part of a settlement agreement in which the company alleged in a lawsuit that Crants had taken the money through a bond refinancing deal without the company’s knowledge or approval. Crants had served as a board member at LCS Corrections Services.

Rhode Island-based Corvias, LLC provides housing for students and U.S. military service members, but there’s also no indication on the company’s website or in other news accounts that the company has built prisons. 

John Picerne, founder of Corvias, testified before the U.S. Congress in January for what Picerne said was unacceptable living standards in some of his company’s military housing. 

Reuters has reported that numerous military housing units operated by Corvais in multiple states had busted pipes, collapsed ceilings, mold and exposed lead paint. 

Nashville-based CoreCivic manages more than 65 states and federal prisons and detention centers throughout the U.S. 

The company, likely the largest private prison operator in the country, changed its name from Corrections Corporation of America to CoreCivic in 2016 to rebrand the giant company after a series of lawsuits over prisoner abuse, prison riots and escapes. Some of those problems have been attributed to cost-cutting measures at the company. 

CoreCivic, along with Geo Group, runs the majority of the Immigrtion and Customs Enforcement’s immigrant detention centers in the U.S. 

Unsafe conditions at many of those immigrant detention centers has been well documented in recent months. 

 

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Governor

Speaker McCutcheon standing with governor on gaming workgroup

Bill Britt

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During her 2020 State of the State address, Gov. Kay Ivey said she would be signing an Executive Order to establish a small working group to gather all the facts on how much money the State could gain if some form of gaming expansion occurred. She also asked the Legislature to give her time for the group to come back with an answer.

Whether lawmakers would grant Ivey’s request for time has been an important question swirling around the halls of the State House.

Speaker of the House Mac McCutcheon answered that question on Wednesday when APR reached out to his office with a request for clarification.

APR’s email wrote, “Speaker McCutcheon recently made the statements quoted below.”

“I am not a big gambling guy; but if you are going to vote for a lottery, that’s gambling, then don’t be a hypocrite and let’s get the biggest bang for the buck,” McCutcheon said. “Let’s address a lottery, the Poarch Creek Indians, and these counties that want a one-armed gambling. Put them all in a room and hammer out a deal.”

The Speaker warned, though, that if he cannot get a grand deal between all the parties on gambling, then there likely would not be any gambling bill brought forward in 2020.

“Does he still stand by these statements?”

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The following is the response APR received from the Speaker’s office:

“Since the Speaker made the statement, the Governor will be signing an Executive Order to bring people together to evaluate the facts on how much money the State could gain if some form of gaming expansion occurred. The Speaker will be working with the Governor in her efforts.”

Ivey said once the working group had completed its task, she would “bring these facts to the 140 members of the Legislature and the people of Alabama. And we will then, once and for all, be in a position to determine whether or not this is a path we want to pursue.”

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That McCutcheon is in  alignment with the governor should signal to all interested parties that no further movement on gaming legislation will happen until the working group has completed its evaluation.

Some have been slow to hear Gov. Ivey’s entreaty.

Even after Ivey’s call for more time to gather facts, the Poarch Creek Band of Indians continues to flood television, internet and social media with a massive advertising campaign touting their billion-dollar plan in exchange for a tribal-state compact and exclusive right to Vegas-style casino gaming in the State.

PCI lobbyists, including tribal council vice-chair Robbie McGhee, are being very pro-active at the State House.

On Tuesday, Madison County Republican Rep. Rex Reynolds said, “We’re gonna move forward on a lottery. We clearly got that message during our conference meeting yesterday. I think it’s the right thing to do. The people want to vote on a lottery and I think we need to give them an opportunity to,” according to a report by WAFF.

Rep. Steve Clouse, R-Ozark, the House budget chairman, recently said that he planned to file legislation that would create an education lottery in Alabama.

Clouse’s bill would create a paper lottery with scratch-offs and PowerBall options only.

Opinion | Prepare for more gambling debates in the 2020 Legislative Session

A day after Ivey issued her State of the State request to the Legislature to stand down on gaming, Senate President Pro Tem Del Marsh held a meeting with representatives of the Poarch Creeks and two of the State’s dog tracks to discuss moving ahead on a proposed lottery and gaming bill.

Marsh holds meeting with gaming interests day after Ivey calls for the Legislature to stand down on gaming

These various statements and actions have added confusion as to what is happening with gaming this session.

Now that McCutcheon has made his position known, maybe it will put to rest the rumors, activities and behind-the-scenes maneuvering that go against Ivey’s wishes.

 

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Education

Business, community leaders call on lawmakers to support Gov. Ivey’s push for more Pre-K funds

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Governor Ivey’s push for a $25 million statewide expansion of Alabama’s high-quality, voluntary First Class Pre-K program was endorsed today by business and community leaders from across the state. If approved by the state Legislature, the proposed funding increase would add at least 160 new classrooms next year and help enroll at least 2,889 additional four-year-olds.

The Alabama School Readiness Alliance Pre-K Task Force included its support for Governor Ivey’s budget request in its 2020 Legislative Recommendations. The ASRA Pre-K Task Force consists of more than 60 prominent leaders from the business, education, civic, medical, legal, philanthropic, military, and child advocacy communities.

In addition to increased funding in FY2021, the Task Force’s plan proposes a series of recommendations to fully fund the state’s First Class Pre-K program by the 2022-23 school year while maintaining the program’s benchmarks for quality and accountability. The Pre-K Task Force’s Recommendations are available in their entirety at https://www.alabamaschoolreadiness.org/asra-pre-k-task-force-recommendations/.

“We are not there yet, but the state is moving in the right direction to provide high-quality, voluntary pre-k to all families that want it,” said Mike Luce and Bob Powers, business leaders and co-chairs of the Alabama School Readiness Alliance Pre-K Task Force. “The Alabama School Readiness Alliance’s Pre-K Task Force is pleased that Governor Ivey is once again prioritizing additional funds to add more pre-k classrooms across the state. We stand with Governor Ivey and encourage lawmakers to appropriate the $25 million increase outlined in her proposal.”

For 13 years in a row, the National Institute for Early Education Research has ranked Alabama’s pre-k program as the number one state-funded pre-kindergarten program in the country for quality. Research by the Public Affairs Research Council of Alabama and the University of Alabama at Birmingham has found that students who participate in a First Class Pre-K classroom – regardless of demographics, zip code or school – are more likely to be proficient in math and reading than their peers.

The Alabama Department of Early Childhood Education manages the First Class Pre-K program. It allocates funding for the First Class Pre-K program through a competitive application process. Public and private schools, child care centers, faith-based centers, Head Start programs, nonprofits, universities, and other community-based providers are all eligible to apply. Potential providers can apply for three different levels of funding: an excellence classroom (up to $50,400), tiered funding (ranges from $86,904 to $100,008), and a new classroom (up to $120,000). Applications for First Class Pre-K classroom funding are due March 13 on the Department’s website, www.children.alabama.gov.

The ASRA Pre-K Task Force first proposed expanding voluntary pre-k access to all families in 2012. Since then, state leaders have incrementally increased the level of investment in Alabama’s First Class Pre-K program from $19 million to $122.8 million. In 2012, the program enrolled just six percent of Alabama’s four-year-olds. In the 2019-20 school year, nearly 40 percent of Alabama’s four-year-olds attend First Class Pre-K.

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Governor

Marsh holds meeting with gaming interests day after Ivey calls for the Legislature to stand down on gaming

Bill Britt

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Despite Gov. Kay Ivey’s call for the Legislature to give her “time to get the facts,” on a lottery and gaming before proceeding with legislation, Senate President Pro Tem Del Marsh summoned representatives of the Poarch Creek Band of Indians and two of the state’s dog tracks to sit down and discuss moving ahead on a proposed lottery and gaming bill.

Ivey seizes gaming issue

A day after Ivey’s State of the State, Marsh, along with Senators Bobby Singleton and Steve Livingston, held a conference with Robbie McGhee, PCI’s Vice-chair, Lewis Benefield, who operates VictoryLand and the Birmingham Race Course, and Nat Winn from Greenetrack to try and reach an agreement among the three gaming entities.

Marsh, at the Wednesday meeting, informed those gathered that they needed to come up with a compromise on the gaming issue so that legislation could proceed with a constitutional amendment on a lottery and gaming package this session.

Participants in the closed-door meeting declined to speak with APR about the content of their discussions. However, those who have knowledge of the conversation did relay some of the details to APR.

According to those sources, the group discussed what a compromise might look like, what tax revenue the facilities would be allotted to the state and locations sought by PCI.

Reportedly, the discussions were generally cordial and productive while lawmakers were present, but that the tone changed dramatically once the lawmakers left the room.

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Two sources with an understanding of events said that McGhee turned arrogantly defiant after the legislators left, telling the track owners that PCI didn’t need to compromise because they already have the votes necessary to pass their desired legislation. Benefield, Winn nor PCI would confirm APR‘s sources’ account.

Any lottery or gaming legislation requires an amendment to the state’s 1901 Constitution, which must be approved by a vote of the people. The governor plays no direct part in legislation that involves constitutional amendments.

PCI is demanding Class III Vegas-style gaming, which would require a tribal-state compact that must be negotiated under the authority of the governor.

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There is a way to bypass Ivey, although it is fraught with complications.

If the Legislature passed a constitutional amendment that includes a comprehensive gaming solution plus an authorization for the governor to negotiate a compact with PCI, then a potential federal-state showdown could occur.

The Indian Gaming Regulatory Act requires that tribe request the negotiation of compacts with states in which they intend to conduct Class III gaming. “States, in turn, must negotiate with tribes in good faith to develop such a compact,” according to a report in Indian Gaming Lawyers. “If the state refuses to do so, the federal government may intervene and potentially impose a compact if all other efforts to secure a compact have failed.”

In a report titled The Tribal Trump Card, Patrick Sullivan explores several cases in which tribes have sued various states under IGRA’s good faith clause.

If the tribe has the vote to pass its legislation, that is not publicly known at this time.

Others close to the tribe say McGhee’s remarks to the track operators should be ignored as he is still smarting from the billion-dollar “Winning for Alabama” campaign that is a bust for PCI.

A recent survey conducted for Alabama Republicans found that an overwhelming majority of likely Republican primary voters disapprove of any legislation giving the Poarch Creeks a monopoly. Those numbers skyrocket in the areas where PCI casinos currently exist.

Speaker of the House Mac McCutcheon has stated publicly that he wants to push for a grand gaming package that puts the issue to rest once and for all and also brings in a lot of money for the state. He has indicated that anything short of a grand plan will not get a hearing.

Do the Legislature and PCI want to challenge Ivey? That’s a daunting question for anyone who has watched her operate the levers of power over the last few years.

Whether Marsh’s meeting was meant to undermine Ivey’s call for time to “get the facts,” or a last attempt at a compromise is unclear. But what is certain is Ivey’s intentions to seize gaming issues and bring a solution to the Legislature in the best interest of the state.

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Governor

Ivey seizes gaming issue

Bill Britt

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Toward the end of her 2020 State of the State address, Gov. Kay Ivey snatched the issue of a state lottery and gaming from the hands of the Legislature.

“I will be signing an Executive Order to establish a small working group of some of Alabama’s most distinguished citizens, to begin working, to gather all the facts on how much money we could really gain if some form of gaming expansion occurred,” said Ivey.

Not only did Ivey take ownership of the gaming debate, she asked the Legislature to stand down.

“My challenge to the Legislature is: give us some time to get the facts and then, together, we will give the people of Alabama the information they need to make the most informed decision possible,” said Ivey. “Once they have done so — I will bring these facts to the 140 members of the Legislature and the people of Alabama. And we will then, once and for all, be in a position to determine whether or not this is a path we want to pursue.”

Not since Gov. Don Siegelman’s failed attempt to bring a lottery to the state in 1999, has any governor dared throw weight behind a lottery bill much less try to untangle the Gordian knot that gaming has become as a result of former Gov. Bob Riley’s bingo wars.

Riley and his compatriots upended years of established law that allowed electronic bingo in Macon, Lowndes and Greene Counties, which resulted in the Poarch Band of Creek Indians gaining a virtual monopoly over gambling in the state. Despite federal rules that prohibit the tribe from operating any games that are illegal in the state, the Poarch Creeks have thrived.

Over the last several months, the Poarch Creeks have engaged in a statewide advertising campaign to promote a billion-dollar payday for the state in exchange for a state-tribal compact and a guaranteed unfettered monopoly over Vegas-style gaming.

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Ivey’s announcement has put an end to any hopes of an immediate compact or other gaming legislation for now.

Lottery legislation requires an amendment to the state’s 1901 constitution, which must be approved by a vote of the people. The governor plays no direct part in legislation that involves constitutional amendments. However, any state-tribal compact must be negotiated under the authority of the governor.

For the last several years, the Poarch Creeks have blocked all attempts to pass a lottery and have resisted calls to negotiate in good faith with owners of the state’s dog tracks.

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Even as there was hope going into the 2020 session that PCI might come to the table for a comprehensive gaming solution recently, those hopes have been waning because there doesn’t seem to be any indication the tribe is backing down from its demands for an advantage over others players in the market.

There is also apparently no leader in the House and Senate strong enough to bring all sides together in a compromise.

Ivey has shown she is powerful enough to bring disparate groups together for a common solution as she did with the 2019 gas tax.

When it comes to the issue of gaming, the Legislature will most likely follow Ivey’s lead as it would be foolish to buck a governor with her approval and influence.

It is doubtful even the Poarch Creek’s money can stop Ivey.

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