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Yahoo
04-04-2025
- Business
- Yahoo
With $50 million spent already, state hires new consultant to restart prison planning
From left, South Dakota Speaker of the House Jon Hansen, R-Dell Rapids, Lt. Gov. Tony Venhuizen, and Ryan Brunner, an adviser to Gov. Larry Rhoden, participate in a Project Prison Reset meeting on April 3, 2025, at the Military Heritage Alliance in Sioux Falls. (John Hult/South Dakota Searchlight) SIOUX FALLS — A $729,000 consultant contract will be added to the roughly $50 million South Dakota has already spent on a stalled prison construction effort. State officials signed a contract this week to pay a consultant to repeat and update a $323,000 prison facilities report that has framed three years of discussions on the state's correctional needs. The contract with Phoenix-based Arrington Watkins is just the latest deduction from a $62 million pool of money spent down to less than a fifth of its original size to prepare for a now-paused Lincoln County prison project. On Thursday, representatives with the Gov. Larry Rhoden administration acknowledged that taxpayers will be out most of that money unless lawmakers vote to revive the controversial project — or a scaled-down version of it — during a June special legislative session. Prison work group peppered with public testimony in first Sioux Falls meeting About $50 million of the money is already gone. It was spent to secure land, design a campus, and secure a stake in the electrical, water and sewer infrastructure that would've been necessary to house and care for 1,500 inmates. The state's under contract to spend millions more, but has paused that work. The state could 'claw back' some of that $50 million, but Lt. Gov. Tony Venhuizen said the administration knew there could be 'significant costs' to shifting course. 'We're doing what we can to reduce that, but it could be a considerable amount, and that's something we have to consider as we move forward,' Venhuzen said after a meeting of the Project Prison Reset work group at the South Dakota Military Heritage Alliance. The state based its earlier decision to pursue an $825 million facility largely on the recommendations of a 2022 report from the Omaha-based DLR Group. Lawmakers rejected that idea in February. That report outlined the state's correctional system deficiencies and recommended a host of potential solutions. The lawmakers most skeptical of the Lincoln County prison proposal repeatedly cited that report's lower men's prison price estimate, as well as its smaller-scale alternative prison construction options. The forthcoming Arrington Watkins report will ask the same sorts of questions. Ryan Brunner, the Rhoden adviser who serves as his point person on prison issues, said Thursday that eight members of the work group reviewed the contract before the state signed it. The state is also preparing to release a request for information, Brunner said, seeking interest from any landowners who might be willing to sell their property to the state for prison projects. After the meeting, Venhuizen said the work group would use the Arrington Watkins report and any interest gleaned from the land-seeking notice to decide where to go next on prison construction. The DLR suggested a 1,300-bed men's prison, but affixed a far smaller price tag than the one lawmakers were presented with last November. Under the direction of the Department of Corrections, a 2022 summer study group endorsed a 1,500-bed facility. Initial 2023 design contracts for that facility, partially redacted versions of which were given to South Dakota Searchlight by the DOC last month, put the top price at $450 million — roughly in line with DLR Group's estimates. An amended contract soon pushed that figure higher. A contract amendment in April of 2024 put the 'not to exceed' price at $740 million. That figure was not offered during a legislative Appropriations Committee the following month, though. At that meeting, and another legislative meeting later that summer, lawmakers were told that the 'guaranteed maximum price' would come in November. By the time that $825 million number arrived, the state had already spent millions to design the facility, drill test bores for a possible geothermal energy system, and to scan for cultural artifacts and wetlands. The state continued to sign contracts for the Lincoln County prison project into early 2025. The $825 million guaranteed price expired in March. Lawmakers who'd hoped to move forward with the project warned their compatriots that the price would only grow through inaction. Michelle Jensen, one of the Lincoln County landowners who sued the state over the prison plan, offered a different perspective in her public testimony to the work group on Thursday. Jensen noted that a final decision from the state Supreme Court in that lawsuit could come after the June special session. The remedy for financial losses in Lincoln County, Jensen said, should have been for the state to 'stop spending money out there if you know it's a thing that might not happen.' Jensen also suggested that the state could sell the land. The DOC transferred about $8 million to the Office of School and Public Lands to obtain the title to the 320 Lincoln County acres upon which it had hoped to build its prison. The land had passed into the ownership of the state Office of School and Public Lands years ago when the owners died without heirs or a will. On a roadside viewing of the property Wednesday afternoon, Brunner told the work group that the state only needed half the property for the prison, and that the other half was reserved for possible future use. Brunner sounded a hopeful note Thursday on a $10.5 million contract with the city of Lennox for a sewer line. The line's not in the ground yet, even though Lennox has collected the money. Funding for all but $500,000 of that contract came from the federal American Rescue Plan Act of 2021. The ARPA dollars had to be obligated to a water or sewer infrastructure project by Dec. 31, 2024. Had the prison project gone forward, Lennox would've been in line for $50,000 monthly payments from the state. Those monthly payments would amount to less than $30 per person for each of the people — inmates and staff — who'd have used the prison's toilets, sinks and showers. 'It's not that much different than your household sewer bill,' Brunner reasoned on Thursday. 'And so we don't start paying that until we actually start running sewage.' If the work group picks a site within 10 miles of Lennox in any direction for any other prison project, Brunner said, the state will still get something from that investment. 'If you're within 10 miles of Lennox, it's possible we could run that line to it,' Brunner said. The state also entered into agreements with Southeastern Electric Cooperative and South Lincoln Rural Water to pay for portions of upgrades planned by the respective utility providers. The state has paid for some of its stake in those projects. Brunner said the state could still pull out of a substation project, since the station has yet to be placed and could move to another location. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
04-04-2025
- Business
- Yahoo
No prison yet, but $50M has already been spent
SIOUX FALLS, S.D. (KELO) – After South Dakota lawmakers voted down legislation to build a new penitentiary, members of Project Prison Reset are starting from scratch. On Thursday morning, they were told that despite all of the unknowns, including the location, the state has already invested tens of millions of dollars in the project. South Dakota's current penitentiary is more than 140 years old. Lawmakers have already approved $62 million to replace it. Task force members learned a majority of that money has already been spent. State to seek possible land sites for prison project 'The number of dollars spent or obligated is $50.8 million,' Senior Policy Advisor Ryan Brunner said at a task force meeting. 'That includes checks out the door, some contractors we still owe money to that we have some bills coming in and then our new consultant, and so that adds up to 50.8 million.' According to the state, close to 80% of that money has gone toward design plans, purchasing land in rural Lincoln County and for a sewer system. The DOC said some of the money could be re-appropriated, including $3.7 million reserved for sitework at the old farm. 'There's about $5 to 6 million available for contracts that are paused, that if we picked a different location, could potentially be reappropriated or spent on design or spent on expenses related to a different location,' Brunner said. However, plans for additional electric substations are not being paused due to the amount of time it takes to complete. If the task force selects a new site, those could be relocated or sold. 'Substations are a very valuable commodity,' Brunner said. 'We have not paused that contract. Those utility contracts total $5.2 million. We're considering those dollars as if they're spent because we intend to move forward.' The task force would like people to come forward with ideas for other potential locations for a new prison. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
26-02-2025
- Politics
- Yahoo
Task force defeat muddles men's prison plan
PIERRE, S.D. (KELO) — A legislative proposal for a South Dakota incarceration task force is no more. Senate Bill 124 lost on Tuesday, failing 15-20. SD DOC announces release of high-risk offender The defeat came one day after the House of Representatives refused to shift $148 million into a state incarceration construction fund. The disarray calls into question what happens next regarding a new men's prison that's been in planning for several years. Gov. Larry Rhoden wanted the 1,500-bed men's prison to be in Lincoln County. But that plan fell apart on Friday, and the guaranteed maximum price of $825 million expires on March 31. Governor's aide Ryan Brunner was spotted in the Senate President's Lobby after the vote on the incarceration task force Tuesday afternoon. The SB 124 prime sponsor was Republican Sen. Kevin Jensen, who lives in Lincoln County. Jensen's bill called for the task force to deliver recommendations no later than December 1. But Senate Republican leader Jim Mehlhaff said further delay could cost South Dakota taxpayers tens of millions of dollars more. KELOLAND News will have more coverage regarding the uncertain future with a new men's prison. KELOLAND's Dan Santella got reaction in Lincoln County to the funding bill failing and KELOLAND's Don Jorgensen spoke with former state lawmakers who previously served on a prison task force. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
21-02-2025
- Politics
- Yahoo
Inside the hearing: SD prison bill goes to House floor
PIERRE, S.D. (KELO) — Legislation to build a new men's prison in Lincoln County is on its way to the full House of Representatives at the state Capitol, but lawmakers on the Joint Committee on Appropriations (JCA) kept their cards close to their chest about how they feel about House Bill 1025 during their hearing Thursday. The proposed men's prison in Lincoln County has a guaranteed maximum price of $825 million. 'That price will only go up if this project does not continue to move forward in some way,' Ryan Brunner, senior policy advisor and director of legislative relations with Gov. Larry Rhoden's office, said to the committee. 'It is imperative that we continue to move this project forward for the safety of our staff, the safety of the inmates, the safety of the public and the ability to offer the rehabilitation and treatment needs.' HB 1025 would authorize the construction of and appropriate money for the new prison between Harrisburg and Canton. 'Discarded, betrayed:' Yankton federal employee laid off 'We all agree that South Dakota needs updated and improved correctional facilities,' Madeline Voegeli of Lincoln County said at the hearing. 'But the current plan is flawed. If we are going to invest in prison facilities, we must do so with long-term sustainability in mind, prioritize smart spending and effective rehabilitation over unnecessarily high construction costs.' If the bill gets the governor's signature, the prison in Lincoln County would be set for a tentative opening in 2029. 'If the priority is getting everybody into a safer building, then I would say the state is failing on that, and four years is far too long,' Sarah Ulmer of Lincoln County said at Thursday's hearing. 'You can't tell me by selecting a site with better existing infrastructure or adding on to existing buildings, the construction cost and period couldn't be cut in half.' Contractors for the project also spoke to committee members. 'I've had the pleasure of working at JE Dunn for 32 years,' contractor Vance McMillan said to lawmakers. 'I've never missed a budget. I've never missed an end date. I know that might be just a guy sitting up here talking to you, but we truly believe in our reputation. We're here to stick our reputation on the table.' In the end, JCA lawmakers were in unanimous agreement in sending HB 1025 to the House floor without recommendation. Republican Rep. Mike Derby of Rapid City made the motion to move the hotly-contested topic in front of all 70 members of his chamber. 'This deserves to be heard by the entire body, with an up and down vote, on the floor,' Derby said near the hearing's conclusion. HB 1025 is an appropriations bill, so to eventually make it to Rhoden's desk, . With 70 lawmakers in the House and 35 in the Senate, the legislation has to have the backing of at least 47 legislators in the House and 24 in the Senate. The bill is on Friday's House agenda. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
