Legislators are recommending a men’s state prison in Sioux Falls, and with it comes a maximum $650 million price tag.
The state has two Sioux Falls sites on the table to choose from.
In May Gov. Larry Rhoden asked a task force three questions. Does the state need a new men’s penitentiary? If yes, what should be built? And where should it be built?
After a long process, South Dakotans have answers to those questions.
The Project Prison Reset Task Force recommended the state build a 1,500-bed men’s prison in Sioux Falls for a maximum $650 million at its final summer meeting Tuesday.
Sen. Jim Mehlhaff made a substitute motion that overrode an earlier motion to create a 1,200-bed prison. He said he wanted to be sure the state’s pen had 1,500 new beds.
“I thought the original left us kind of where we are right now. It’s just a newer facility that’s already overcrowded. And we’ve had two consultants that we’ve paid a lot of money to take a look at our system and make a recommendation as to what we needed,” Mehlhaff said. “Both recommendations were a facility at least 1,500 beds, and I just thought building a 1,200 would just leave us, that would’ve been 900 beds. We have about 800 inmates on the hill right now, and they’re overcrowded.”
Mehlhaff’s motion was amended by Attorney General Marty Jackley to include a $650 million cap on the project.
Despite passing a recommendation, many legislators aren’t sold on the project’s price tag. This is largely due to prices other states have received for their prison projects.
Most notably, Nebraska announced a $313 million bid to build a 1,500-bed prison. In the meeting, Lt. Gov. Tony Venhuizen said the state put in an information request with Nebraska around the project, and they aren’t expecting to get any information.
J.E. Dunn, the contractor giving legislators estimates on the project, said the Nebraska project doesn’t include intake and is for only construction costs, not others associated with it. The company calls it an “apples-to-oranges' comparison.
“It may be, but $500 million buys you a lot of apples. So, those are the things they have told us they’ll get us some answers to. So you have issues like design standards that are used, whether you use pre-cast concrete versus steel,” said Majority Leader Scott Odenbach said. “Whether a lot of the American Correctional Association standards are used or not because there’s nothing in the law that said you specifically have to use them. And so, it needs to be a holistic approach to building this prison that meets the need we know we have, but comes in under a budget number we give them”
Odenbach, along with other legislators, feel they aren’t getting the most bang for their buck. Odenbach and other task force members brought up the idea of opening the project to other contractors for bid.
That included Rep. Karla Lems. She said she’s not sure if the state’s getting the best deal, it can.
“I really wanted to see that come to open bids again. So, I was concerned about that piece, however we heard on the other end that’s going to take more time, more money,” Lems said. “And so, there were those of us that made concessions on that. So again, that’s going to be another piece you may see in the Legislature like, ‘Hey, you know we’ve got to have these things, other questions that are still unanswered like why is Nebraska doing it for $313 million versus we’re still being told $650 million for 1,500 beds.’”
J.E. Dunn and Henry Carlson Construction were the only contractors who put in a bid for the project originally.
Now, Odenbach said other areas of the project are being looked at for potential cost cutting measures.
“Basically, open up all other aspects of this for bids again from the architect down to the actual design and the construction of it,” Odenbach said.
He also said the group dropped the price down significantly from a bill appropriating funds to a Lincoln County site that’s since been decided against.
“I’m pretty confident that whatever else happens, being able to save $175 million will be worth it,” he said.
Though the task force voted against Lincoln County site, it still lingers in the minds of some legislators as a “perfect” site. Sen. Mehlhaff said he still sees it as such, and that compromises needed to be made to pass a prison in the Legislature.
“There’s a lot of people that are upset that we didn’t build on the Lincoln County site, and I’m one of them. That site would’ve set the Department of Corrections up probably for the next 200 years,” he said. “But it was clear that the House that they wouldn’t get the votes. You weren’t going to get the votes, needed 2/3 in the House and it was clear it wasn’t going to happen. And we have a major problem we need to deal with, so we had to make some concessions to get where we’re at today.”
Mehlhaff added that though dropping the Lincoln County site and the project’s allotted price tag from $825 million to $650 million may come with a price.
“I don’t think it’s very wise to place a dollar figure on it because I think we’re probably going to get a facility that’s probably less than what we need.”
The cheapest proposal J.E. Dun and Henry Carlson Construction offered was for nearly $623 million. That proposal was in Sioux Falls for only 1,200 beds. Whether the contractors can come up with a 1,500-bed solution under $650 million is still to be seen.
When asked whether it would be possible, a representative from J.E. Dunn said it was a “tall order.” A South Dakota state engineer said of the prospect, “you cannot squeeze blood from a turnip.”
In supporting the motion, Speaker of the House Jon Hansen said he did so hesitantly, and only with the idea that plans would be presented to the Legislature in the future.
“My one word of caution: the Legislature is going to need certainty we can actually do 1,500 beds for $600 million…Between now and then, we need certainty to know it’s something we can really do, that it’s not some unicorn we’re voting on.”
Another issue brought up was the Sioux Falls area’s future. Sheriff Mike Milstead said it’s fine the prison is being built in Sioux Falls, but since it’s being built here support should come with it.
“But when the time comes for increasing programs to reduce recidivism, when the time comes for supporting counties, law enforcement, city law enforcement in our area in particular if we’re gonna take on another a 1,500-bed prison which is an addition of about 700 prisoners for us,” Milstead said. “Please consider us when you’re making those decisions, those financial decisions. Because it is going to impact this community and I’d be lying to say it’s not.”
Odenbach and other legislators say that’s another piece to the puzzle. Though the task force passed a recommendation, any decision still needs to be approved by both the Legislature and Gov. Rhoden.
A special legislative session was originally scheduled for July 22 but has been postponed.
There, lawmakers may face an uphill battle as both chambers of the Legislature need a 2/3 majority. Sen. Mehlhaff said though he didn’t support a financial cap on the project, he feels this may inch them closer.
“To put a $650 million cap on it, we wound up with a unanimous vote. And I think without that we wouldn’t have had a vote, and I think we’ll have a better chance of getting it through the Legislature,” Mehlhaff said.
In closing, Lt. Gov. Tony Venhuizen said he doesn’t think many people would think the recommendation is perfect. However, he added that shouldn’t stop the task force from moving it forward.
“Politics is the art of the possible, and we have to find a plan that is possible. And I think we also have to remember that you can’t let the perfect be the enemy of the good. To some of us Lincoln County was the perfect site, but Sweetman is a good site,” Venhuizen said, referring to one of the Sioux Falls sites offered to the state. "And I will caution you, because I want to agree with Speaker Hansen, there is no appetite, none for going above $650 million from the legislators.”
He said that may mean more compromises are on the horizon as a final design and other aspects of the project unfold.
A new date for the special session hasn’t been set, but Gov. Rhoden said he’ll announce “the next steps soon.”
