City of Littlefield announces sale of Texas Civil Commitment Center
LITTLEFIELD, Texas (NEWS RELEASE) - The City of Littlefield, Texas is pleased to announce that the sale of the Texas Civil Commitment Center – Bill Clayton Facility to MTC Corrections Holdings, LLC was completed on July 9, 2021.
The sale was approved at the February 22, 2021 City Council meeting following a public bidding process. The Center was built in 2000 with funds from certificates of obligation issued by the City.
Although originally constructed to house state inmates, the facility stood largely empty until 2015. In 2015 the facility was converted to a civil commitment center and leased to a private company to operate a civil commitment facility for the State.
Lease payments from the operators have totaled almost $4,500,000 over the past six years, with utility payments to the City totaling an additional $420,000. This income allowed the City to retire all of the long-term debt related to the facility and to save over $1,500,000 in interest payments (coupled with prior refinancing at lower rates).
The sales price of the facility was $6,000,000. The City expects to continue receiving approximately $70,000 per year in utility payments from the new owners, as well as up to $1,000,000 in additional payments over the next 20 years related to City services.
Additionally, the property will return to the tax rolls and should add significant tax revenue to the county and school district. Most importantly, the sale will allow the new owners to make the capital improvements necessary to keep the current contract with the State at no cost to Littlefield citizens.
This will allow the retention of 130 current jobs with a $10,000,000 annual payroll. Based on current projections, the local workforce could grow to 220 employees in the coming years.
Littlefield wishes the new owners success in the future operation of the Center and is proud that it was able to find qualified and experienced owners to help maintain the local jobs that have been so important to our economy over the past five years.
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