Prison Development Budget Timeline

Prison Development Budget Timeline

  • 2014
    • The decision was made to move the prison and the timing was right:
      • Existing prison determined to need at least $238 million in repairs
      • Estimates showed that state could realize billions in economic benefit by relocating the prison
    • Winter 2015
      • Cost estimates – $546 to $683 million, not including site-specific costs that would be determined upon site selection
        • Legislature appropriated $550 million ($470 bond, $80 million cash)
      • August 2015
        • Legislature approved Prison Relocation Commission’s recommendation to move the prison to Salt Lake City
          • Every site under consideration would require additional funding, and the SLC location was estimated to cost an additional $154 million
        • Spring 2016
          • Architect from DFCM worked with Department of Corrections to create prioritization program for the prison that met JRI goals, national standards and addressed potential future needs of a growing population, with a price tag of $860 million
            • This initial programming is common practice and usually exceeds anticipated budgets
          • Summer/Fall 2016
            • DFCM and Dept. of Corrections conducted a line-by-line review and reduced the cost estimate to $700 million
          • Spring 2017
            • As planned, Legislature authorized another $100 million in bonding for site-specific costs of the chosen location, bringing total allocation to $650 million
          • Summer/Fall 2017
            • In an effort to continue to reduce costs, project managers right-sized the space to meet the appropriation
            • This resulted in the current estimate of $692 million, a 19.5% reduction from highest estimate, and only $9 million more than the high end of the original 2015 estimates even when including site-specific costs that weren’t contained in those 2015 numbers
          • 2018 and Beyond
            • The current $692 million is an estimate and true costs won’t be known until it is placed for bidding
              • There remains a risk of cost escalation due to high labor demands and rising material costs
              • Over the last three years, the construction industry has realized an average 8.6% rate of inflation
            • Number will continue to be reviewed and challenged by DFCM, BDK (state’s consultant), the contractor team and the governor’s office

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