Jail building corporation approves lease with Madison County

May 6—ANDERSON — The building corporation appointed to help finance the construction of a new Madison County jail has approved the lease agreement with the county.

The three members of the building corporation met Monday and approved two resolutions to approve the articles of incorporation and bylaws and the lease agreement.

Attorney Adam Steuerwald with the Indianapolis law firm of Barnes & Thornburg explained the bond to pay for the construction of the jail is not to exceed $95 million for a term of 20 years at a maximum interest rate of 5-1/2%.

He said the building corporation will issue the bonds and will lease the Madison County Government Center, Dispatch Center and existing jail to pay for construction of the new jail until completed.

Steuerwald said those lease payments will pay for the bonds until the $103 million jail is completed.

"This is a funding mechanism," he said. "A new jail has been discussed for several years and the county council approved a correctional income tax to make the lease payments."

Once the new facility is completed, ownership of the Madison County Government Center, Dispatch Center and current jail will revert back to the county.

Don Henderson was elected president of the building corp. with Joey Cole elected vice president and Ned Dunnichay as secretary/treasurer.

Henderson expressed a concern about possible cost overruns during the construction of the new jail.

"There has to be oversight," he said.

The new jail is being planned to have 528 beds which would include 144 beds in a dormitory setting.

The timeline is for the county to receive bids for construction in June and the sale of bonds in July.

Construction could start in August and will take two years to complete.

The jail should be operational by the end of 2026.

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.