Warren County supervisors evaluating options to build jail without raising taxes

Published 4:48 pm Friday, September 8, 2023

Facing the “astronomical costs” of building a new jail facility, the Warren County supervisors are in talks with consultants to address financial options.

During a recent working meeting, the Board of Supervisors met with Nnamdi Thompson, of Madison-based Government Consultants, Inc., to discuss financing options for the new facility. Thompson’s presentation included a cost breakdown for the project, which could cost $65 million.

Board Vice President Dr. Jeff Holland said Friday the cost estimates are not final and are simply representative of what the county could afford to pay without raising taxes.

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“The sum total is not going to be firm and real until we have the 50-percent design drawings back, and we won’t have those back until at least February (2024),” Holland said. “If we’re lucky, the architects will accelerate what they’re doing. But as presently scheduled, it’ll be February.”

Holland added that the project total, estimated between $65 million and $70 million, is the “ideal,” and the Board is examining what it can build for that price.

“We have used a working number in order to be able to look at what the county can finance without having to raise taxes,” he said. “That’s what we’re shooting for, is to build a building without having to raise taxes. Now what we’re doing is seeing what we can buy for that. Until we see if we can get what we need for the county, then we won’t know where we are (in terms of cost).”

Site and utility costs, including setting up the new jail site for sewer, gas and electricity access, are estimated at $3 million.

Construction costs are estimated at $49,592,974. The bulk of the construction costs, $47,612,974, will go toward the construction of the detention center building itself.

Holland said board research shows jail construction costs significantly more per square foot than the construction of a house — up to $600 per square foot.

“The cost of building a jail in this country is astronomical. We have data from five or six jails that have been built across the country, and the cost of building a jail is two, three, four, even five times what it costs per square foot to build a house,” he said, citing necessary requirements that must be considered in modern detention facility construction.

Also included in construction costs are design and construction contingencies of $990,000 each. A contingency is a part of a project’s budget put aside to cover any unforeseen costs, risks, events or changes in scope that may affect the project’s cost over the course of its life.

Design costs for the project are estimated at $4,997,500, with the greatest expense being architectural fees of $3,712,500.

Holland said waiting until February 2024 to confirm project costs will reduce the number of change orders needed in the project and will also ensure more accurate estimates for citizens of Warren County.

“We’re working really hard, as a board, to work this entire thing so we can pay for it without increasing taxes. Our ability to confirm that we can do that won’t be completely known to us until we get the 50-percent drawings in our hands so we have confidence in the design and engineering factors associated with this, not just confidence in the ability that we can finance the money,” Holland said. “Early next year, we’ll get a price for this facility that will be the price we end up paying. By waiting until we have the 50-percent design drawings to set that number, we will cut down if not eliminate the likelihood of change orders.”

Owner’s administrative costs are estimated at $7,409,526, with consulting and project administration being the largest expense for the category at $2.2 million.

Holland said special thanks are owed to Warren County’s representatives in the state Legislature, including Sen. Briggs Hopson, who worked to secure local and private legislation to allow the county to finance the jail over a 30-year term under a lease-purchase agreement, instead of the traditional 20-year financing term.

“(Hopson) and others deserve a lot of credit for getting (the local and private legislation) through the Legislature for us so we’re able to do that,” he said. “If we had to live with 20-year terms for this thing, I can’t imagine being able to do this on the financial side without raising millage for some time period.

“So, $65 million to $70 million would be our ideal target, but we must confirm that against engineering and design to make sure we meet all our requirements, and we’ll do that in February,” he added. “If that matches up, then we’re in great shape.”