May 7 2010
The GEO Group (NYSE:GEO) (“GEO”) announced today the signing of a contract with the State of Florida, Department of Management Services (the “Department”) for the management of the 2,000-bed Blackwater River Correctional Facility (the “Facility”) located in Santa Rosa County, Florida.
Under the terms of the managed-only contract, the Facility is scheduled to open and begin the intake of inmates on November 1, 2010. The ramp-up of the Facility is expected to be completed in the first quarter of 2011.
The managed-only contract is expected to generate approximately $30.7 million in annualized operating revenues at full occupancy. The 2,000-bed Facility will house medium and close-custody security adult male inmates with a minimum occupancy guarantee of 90 percent. The original contract award had projected that the majority of the Facility inmates would require chronic medical and mental health treatment; however, as a result of continued budgetary constraints, the state of Florida has decided to revise the contract to reflect a less costly inmate population mix requiring significantly less medical and mental health services.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “The opening of this important 2,000-bed correctional facility will help meet the on-going need for cost-efficient, secure correctional beds in the State of Florida. We are grateful for the confidence placed in our company by the Florida Department of Management Services. We look forward to strengthening our partnership with the State of Florida and to working closely with the community of Santa Rosa County, Florida to maximize the local economic development impact of this project.”
Source: http://www.thegeogroupinc.com/