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The Indianapolis City-County Council has voted against considering a revised proposal for the US$1.8 billion new Marion County criminal justice complex.
This announcement comes after a new report commissioned by the Indianapolis City-County Council in April supporting traditional financing for the project. The report was carried out by Bart Brown, the council's chief financial officer, and H.J. Umbaugh and Associates.
The revised proposals would reduce the number of beds in the new jail to 2,228. It would also eliminate the development of a new sheriff's building and would cut the number of courtrooms by four. This proposal would reduce the total project construction costs by US$17.5 million and result in savings of $32 million before 2025.
City-Council Member Jeff Miller stated:
"Abandoning the current plan will cost nearly US$8 million in sunk costs that the city will have to repay. The procurement process will have to begin anew, which realistically will take two to three years, just as this current process has."
"The site, itself the subject of a multi-year selection and review process, will no longer be under the city's control."
In late 2014 the City of Indianapolis selected the consortium WMB Heartland Justice Partners to develop the project. The wining consortium is composed by Meridiam Infrastructure Indy Justice, Balfour Beatty Investments, Inc. and Walsh Investors, LLC. At that time the project involved the development of:
The project was expected to be developed on a design, build, finance, operation and maintenance (DBFOM) basis for a period of 35 years.
We have recently reported about several PPP projects in the USA: