Spending questions and water strain hit proposed prison plan
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Signs protest the prison at the property directly across the road from the 815-acre site. Photo: Worth Sparkman/Axios
New public records reveal infrastructure and spending concerns around Arkansas' proposed $1 billion Franklin County prison plan.
Why it matters: A June 30 study commissioned by Fort Smith says the city doesn't have the capacity to treat and transmit enough water to meet the expected needs if the prison is built 30 miles away, the Arkansas River Valley Democrat-Gazette first reported.
- Meanwhile, a Wednesday Substack post from advocacy group Gravel & Grit reported the project's construction management company, Vanir, expensed first-class air travel, alcohol and valet services outside the standard state policy.
The big picture: The proposed 3,000-bed project would be one of the largest development projects in recent state history.
- In an interview with Axios, Gov. Sarah Huckabee Sanders stood by her decision to build the prison at the site despite local opposition and no spending authority.
State of play: Fort Smith's infrastructure can handle up to 50 million gallons per day (MGD), which is near the maximum demanded last year, the Democrat-Gazette reported.
- The city's maximum demand is expected to grow greater than its capacity this year.
- Estimates call for 300,000 to 500,000 gallons per day at the prison.
Reality check: Fort Smith's report calculated the prison would use 562,000 gallons per day.
Follow the money: The state Board of Corrections awarded Vanir of Sacramento, California, a $16.5 million contract in October to manage the project, including building it on time and within budget.
- A July 14 memo from Chad Brown, CFO of Arkansas' Department of Corrections, to Vanir Construction Management's project manager reminded the company it's been supplied with the state's travel policy.
- The memo noted that hotel points, valet services and alcoholic beverages are not reimbursable. Upgrades to first-class seating must be covered by Vanir, Brown wrote.
- The state agreed to pay for up to $200 per night at hotels expensed so far, but that future stays must fall within policy. The rate per night set by the U.S. General Services Administration is $110.
What they're saying: "The Department keeps records of the expenses Vanir submits per their contract and will continue to work with them to make sure all state policies are followed," Rand Champion, spokesperson for the state Department of Corrections, wrote in an email.
- All options regarding water are being considered, he said.
- Vanir did not respond to a request for comment.
- "[The] larger concern is that we've only scratched the surface of the work intended to be done and money to be spent, so we wonder how many millions of dollars will be lost to waste, fraud, and corruption throughout the life of the project," Gravel & Grit executive director Adam Watson wrote in an e-mail.
What's next: State and local officials plan to meet July 29 to review Fort Smith's water capacity and discuss possible solutions.