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Alabama prison construction plan hits major roadblock


(SBG)  Alabama prison construction plan hits major roadblock
(SBG) Alabama prison construction plan hits major roadblock
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A plan to improve Alabama’s long-troubled prison system hit major roadblock on Monday when Barclays Capital pulled its funding for the construction of two new prisons.

Barclays was the underwriter for CoreCivic, who will be building two of the three proposed new prisons in the state, one near Atmore, AL, was underwriting $850 million in construction costs.

Barclays faced fierce backlash in the financial sector after pledging in 2019 it would no longer provide funding for private prison companies.

The American Sustainable Business Council (ASBC) and Social Venture Circle (SVC) announced Thursday they were terminating the membership of Barclays and refunding dues over the deal.

We stand with the activists, business leaders, and investors, vehemently opposed to any efforts to develop and build two prisons in Alabama (Elmore and Escambia Counties). We are in full support of the initiative to stop the offering and have made the decision to immediately return $15,000 in sponsorship and membership dues paid by Barclays and terminate their corporate membership immediately,” said Isaac Graves, Interim Executive Director, Social Venture Circle. “We invite all businesses and impact investors we represent to join us in supporting the initiative to stop the offering.

The State of Alabama will be leasing the two prisons from CoreCivic after construction, but the prisons will be run, staffed and maintained by the Alabama Department of Corrections.

To be abundantly clear, these are not private prisons – they will be run by the State. As the sole operator and tenant, the ADOC will be contractually obligated to make lease payments that cover all facility maintenance, lifecycle replacement, and financing costs for the full term of the bonds

Governor Ivey said in a statement Monday.

CoreCivic also responded on Monday saying:

The reckless and irresponsible activists who claim to represent the interests of incarcerated people are in effect advocating for outdated facilities, less rehabilitation space and potentially dangerous conditions for correctional staff and inmates alike. This type of extremism does nothing but put politics over people, and exacerbates rather than solves the challenges facing our criminal justice system

Governor Ivey announced in February the plans for rehabilitating Alabama’s struggling prisons.



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