HEADLINE: Wackenhut Corrections Corporation Receives Notice Of Intent To Contract With State Of Colorado For The Construction & Operation Of 500-Bed Correctional Center
DATELINE: PALM BEACH GARDENS, Fla., Feb. 11
Wackenhut Corrections Corporation (NYSE: WHC), has been notified by the State of Colorado of the Colorado Department of Correction's intent to enter into a contract for construction and operation of a 500-bed Pre-parole and Parole Revocation Center to be located in Pueblo, Colorado. WCC anticipates negotiations to commence in mid-February.
The contract is expected to generate approximately $9.6 million in annual revenues and approximately $48 million over its initial 5-year term (1 year, plus 4 1-year options), not including annual contract adjustments. Additional contract terms beyond the initial 5-year term require special permission of the State Controller and/or Attorney General.
George C. Zoley, chairman of the board and chief executive officer of Wackenhut Corrections, said, "We appreciate the confidence placed in our company by the state of Colorado in making this selection. We will work diligently with the DOC in the negotiations to ensure the most cost-effective solution possible consistent with the Departments' budgetary and operating requirements. We look forward to becoming a contributing member of the public-private partnership with the DOC and the community in which we will operate."