State to sell bonds to buy prison in NLV

Thursday, Aug. 9, 2001 | 10:40 a.m.

SUN CAPITAL BUREAU

The state will buy the privately operated women's prison in North Las Vegas through the sale of bonds approved Wednesday.

The state Board of Finance authorized the raising of $55 million through bond sales, with nearly half to be used to buy the women's prison. The prison, which has about 500 inmates, is owned and operated by Corrections Corporation of America.

Darrel Rexwinkel, chief of financial services for the Department of Prisons, said the state has a 20-year contract to pay the private company to operate the facility. Part of the monthly payment to Corrections Corporation goes for the construction costs of the buildings. And at the end of 20 years, the state will end up owner of the buildings.

The purchase with bond money, Rexwinkel said, will permit the state to acquire the buildings earlier. He said state should come out even financially because of the low interest rates on bond sales.

Most of the rest of the $55 million will go to finance construction of university projects, state Treasurer Brian Krolicki said. The bonds will be sold Aug. 29.

The board also authorized the sale of $16.2 million in bonds for natural resources, with most of the money going toward preservation efforts at Lake Tahoe.

Also approved was the sale of $1.6 million for local communities to comply with the federal safe drinking water act.