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Private Prisons Corporation Extends California Lease

August 10, 2016 by David Eugene Archer Sr.

Corrections Corporation of America (CCA) has announced a four-year extension of its lease agreement for the California City Correctional Center with the California Department of Corrections and Rehabilitation (CDCR), reported Globe Newswire.
CCA agreed to extend the lease through Nov. 30, 2020, during which time CCA will provide up to $4 million of certain facility and other tenant improvements, according to Globe Newswire on June 13, 2016.
“We are pleased … to further extend the relationship we have had with CDCR since 2006 when we entered into our first contract with CDCR,” said Damon Hininger, CCA’s president and chief executive officer.
He also said, “Our California City Correctional Center has proven to be a great solution to provide CDCR with in-state prison capacity operated by CDCR, while avoiding significant up-front capital costs associated with new construction.”
The initial lease agreement included a three-year base term ending on Dec. 1, 2016, and unlimited two-year renewal options upon mutual agreement, reported Globe Newswire.
CDCR now has the unilateral right to extend the lease for two additional two-year periods through Nov. 30, 2024, with indefinite two-year renewal options thereafter upon mutual agreement, according to the press release.
CCA is the nation’s largest owner of partnership correctional, detention, and residential re-entry facilities, the company announced.
CCA owns or controls 73 correctional, detention, and re-entry facilities, with a design capacity of approximately 75,000 beds. It also manages 11 additional facilities, with a design capacity of approximately 14,000 beds. CCA operates in 20 states and the District of Columbia, reported Globe Newswire.

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