DEPARTMENT OF CORRECTION
James B. Hunt, Jr., Governor
Theodis Beck, Secretary
Tracy Little, Director of Public Information (919) 733-4926
FOR IMMEDIATE RELEASE
June 23, 2000
Correction Begins Talks to End Private Prison Operation Contracts
RALEIGH - The N.C. Department of Correction has initiated negotiations to end contracts with Corrections Corporation of America for the operation of two prisons the company owns and operates in the state.
"We believe it is in the best interests of the state for the Department of Correction to assume operation of the two facilities," said Correction Secretary Theodis Beck. "We are hopeful that we can reach an amicable and mutually acceptable agreement with CCA for a smooth transition of the facilities' operations to the state."
Although the Department of Correction is proposing to take over operations of the two facilities, it hopes to continue its business relationship with CCA by leasing the facilities, which are owned by the Nashville, TN-based corporation.
CCA owns and operates two prisons that house North Carolina inmates. The two prisons are Pamlico Correctional Facility in Bayboro and Mountain View Correctional Facility in Spruce Pine. Pamlico opened in September 1998 and Mountain View opened in December 1998. Both facilities are designed to house 528 medium-custody inmates.
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Fact Sheet - Private Prisons
Both facilities are designed to house 528 medium-custody adult male inmates.
Pamlico opened in September 1998
Mountain View opened in December 1998
Costs of Contracts
DOC pays CCA $36.69 per day per inmate
Total $7,070,896 per year in correctional services agreement
An additional $2,757,552 to lease the facility
DOC pays CCA $36.75 per day per inmate
Total $7,082,460 per year in correctional services agreement
An additional $2,865,600 to lease the facility
Correctional Services Agreement (operations) is for five
years and building lease is for
10 years, renewable for 10 years
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