Jim Zeigler v. Kay Ivey suit on prison lease plan dismissed
A circuit judge has dismissed the lawsuit filed by four plaintiffs seeking to block Gov. Kay Ivey’s prison lease plan. After a hearing Friday, Judge Greg Griffin ruled today that the suit cannot go forward and dismissed it. The suit alleged that the $3.6 billion prison lease plan is illegal because it was not approved by the legislature. State Auditor Jim Zeigler, the lead plaintiff, made this statement: “We are studying the Judge’s order. We will make a decision this week on whether to appeal. We will continue our fight to block the prison plan by raising issues that would cause potential investors to withdraw. We believe that investors see the fatal flaws in this plan and will not touch it with a 10-foot pole.” The three underwriters for the plan have withdrawn — Barclays, KeyBank and Stifel. The plan would contract with three consortiums of private businesses, two led by CoreCivic of Nashville. The contractors would pay to build three super-prisons in Bibb, Elmore and Escambia Counties of Alabama. Two of the contracts were signed Feb. 1 with the one in Bibb County pending. “The Ivey plan would force Alabama taxpayers to pay rents starting at $94 million a year and going up to $106 million. At the end of 30 years, the state would own equity in the prisons of zero. No equity. This is a bad business plan,” Zeigler said. “The Ivey plan does not address the problems in the prison system – safety of staff and other inmates; overcrowding; mental health; suicide; recidivism; and inadequate job training. The plan merely throws over $3.6 billion of taxpayer money into rented buildings,” Zeigler said. Zeigler (R-Mobile) is joined in the suit by three other plaintiffs – State Rep. John Rogers (D-Birmingham); Leslie Osborne, a property owner adjacent to the proposed prison site in Elmore County; and Rev. Kenny Glasgow, a prisoner rights activist from Dothan.
Judge hears arguments in lawsuit over Alabama prison leases
A judge said Friday that he will decide soon whether to let a lawsuit go forward challenging Alabama Gov. Kay Ivey’s plan to lease privately owned prisons. Montgomery Circuit Judge Greg Griffin heard arguments in the state’s request to dismiss the lawsuit that contends the plan violates state law because the massive $3 billion expenditure was not approved by the Alabama Legislature. Griffin indicated he would rule by Monday. Attorney Kenny Mendelson, of Montgomery, filed the lawsuit in Montgomery County Circuit Court on behalf of four plaintiffs – Republican State Auditor Jim Zeigler; Democratic state Rep. John Rogers, of Birmingham; Leslie Ogburn, a homeowner near the proposed prison site outside Tallassee; and prisoner rights activist Rev. Kenny Glasgow of Dothan. “This is a legislative function. It’s up to them to decide whether to fund prisons or not to fund prisons. And what the (prison commissioner) and the governor have attempted to do is say, ‘We are going to go ahead and obligate the state anyway,’” Mendelson said after court. Much of the arguments on Friday centered on whether the state’s financial obligation under the leases is a debt. Assistant Attorney General Jim Davis told Griffin that court rulings have made clear that a lease is not the same as a debt. “It is not a debt as a matter of law,” Davis said. The governor in February agreed to lease two mammoth prisons as a partial solution to the state’s troubled correction system. The two 30-year lease agreements are with separate entities of CoreCivic, one of the nation’s largest private prison companies. The governor’s office is negotiating with another company to build a third prison in Bibb County. Ivey has said new prisons are a crucial first step to overhauling the state’s troubled and aging prison system and that new facilities will be safer and enable more training and rehabilitative efforts. Critics said the $3 billion plan is unnecessarily expensive and does not address critical issues of training, violence, and understaffing. The proposed prisons would be owned by the private companies but staffed and run by the Alabama Department of Corrections. Ogburn said homeowners and businesses in Elmore County have concerns about being near the planned prison that would house about 3,000 inmates. She said the community didn’t know about the proposals until surveyors were on the site. “The biggest concern is the shadiness. They did all of this behind closed doors,” Ogburn said. The governor’s lease plan has been besieged by setbacks including the withdrawal of finance companies. Republished with the permission of the Associated Press.
Email Insights: Bloomberg confirms last underwriter out of Kay Ivey prison lease deal
Alabama State Auditor Jim Zeigler says the last underwriter for financing an Alabama prison lease plan has backed out. Zeigler, a vocal opponent of the plan, says it “should be pronounced dead.” Stifel Bank of Cleveland, Ohio follows the two lead underwriters which withdrew from the project April 19 – Barclays of London and KeyBank of Cleveland. The project was to be led by CoreCivic, a Nashville firm in the private prison business. Stifel’s Senior Vice President of Investor Relations, Joel M. Jeffrey, said in an e-mail Monday, May 10: “…this transaction has already been withdrawn from the market. Further, you should understand that Stifel is no longer engaged with CoreCivic, any conduit, or the State of Alabama regarding the financing of the project.” Bloomberg News confirmed the contents of the email and that Stifel is out of the Alabama prison lease project. The plan would contract with three consortiums of private businesses, two led by CoreCivic. The contractors would pay to build three super-prisons in Bibb, Elmore, and Escambia Counties of Alabama. Two of the contracts were signed Feb. 1 with the one in Bibb County pending. “The Kay Ivey plan would force Alabama taxpayers to pay rents starting at $94 million a year and going up to $106 million. At the end of 30 years, the state would own equity in the prisons of zero. No equity. This is a bad business plan,” Zeigler said. “The Ivey plan does not address the problems in the prison system – safety of staff and other inmates; overcrowding; mental health; suicide; recidivism; and inadequate job training. The plan merely throws over $3.6 billion of taxpayer money into rented buildings,” Zeigler said. A bipartisan lawsuit seeking to enjoin the Ivey plan is set Friday, May 14 in Circuit Court of Montgomery County at 9 a.m. Judge Greg Griffin will hear motions to dismiss filed by the state. Zeigler is joined in the suit by three other plaintiffs – State Rep. John Rogers (D-Birmingham); Leslie Osborne, a property owner adjacent to the proposed prison site in Elmore County; and Rev. Kenny Glasgow, a prisoner rights activist from Dothan. The plaintiffs allege that the plan violates the state constitution by creating state debt and violates a law requiring legislative approval to lease a prison. (Please see E-mail below to opponent of the Ivey prison lease plan) As we have communicated, we are interested in your perspective generally and specifically regarding the correctional system in the state of Alabama. With respect to your request that Stifel withdraw from the former transaction led by Barclays, we note that this transaction has already been withdrawn from the market. Further, you should understand that Stifel is no longer engaged with CoreCivic, any conduit or the State of Alabama regarding the financing of this project. As a matter of professional conduct, we endeavor not to discuss prospective or hypothetical transactions, and, to avoid misunderstanding, we will not do so on Tuesday. If you want further information on this specific project, you should reach out to the appropriate person in the government of the State of Alabama. That aside, we look forward to our call. Sincerely, Joel M. Jeffrey Senior Vice President STIFEL | INVESTOR RELATIONS
Hearing set May 14 in Jim Zeigler suit against Kay Ivey prison lease plan
A hearing has been set on state motions to dismiss a lawsuit by State Auditor Jim Zeigler and three other plaintiffs who seek to block a $3.6 billion prison lease plan by Gov. Kay Ivey. Montgomery County Circuit Judge Greg Griffin will hear a filing by Attorney General Steve Marshall to take over Zeigler’s official claim and then dismiss it. He will also hear motions to dismiss the entire case. The hearing is 9 a.m. Friday, May 14 at the Montgomery County Courthouse. The plaintiffs allege that the prison plan violates the state constitution by creating state debt over a 30-year period. They also allege that the plan violates state law by not having approval by the Alabama legislature. Zeigler calls the plan “a 30-year mistake.” “The Ivey plan would force Alabama taxpayers to pay rents starting at $94 million a year and going up to $106 million. At the end of 30 years, the state would own equity in the prisons of zero. No equity. This is a bad business plan,” Zeigler said. “The plan does not address the problems in the prison system – safety of staff and other inmates; overcrowding; mental health; suicide; recidivism; and inadequate job training. The plan merely throws over $3.6 billion of taxpayer money into rented buildings,” Zeigler said. “We thought this plan had been killed off April 19 when the two largest underwriters pulled out of the project, but the Ivey administration is stubbornly pushing forward. There are two giant signed contracts already executed. This lawsuit is needed to make sure the plan is good and dead,” Zeigler said Thursday. Other plaintiffs are State Rep. John Rogers (D-Birmingham); Leslie Ogburn, a homeowner adjacent the proposed prison site near Tallassee, Al; and Rev. Kenny Glasgow, a prisoner rights activist in Dothan. Zeigler says an intentional decision was made to file a non-partisan lawsuit.
Email Insights: Jim Zeigler says suit filed to block prison lease plan
A civil suit was filed Tuesday to enjoin a prison lease plan by the Alabama Department of Corrections and Gov. Kay Ivey. The suit alleges that the prison lease plan is illegal in that it did not receive approval by the Alabama legislature and other legal deficiencies. The Montgomery County Circuit Court filing was made by Montgomery attorney Kenny Mendelson on behalf of four plaintiffs. Mendelson had been the attorney in the first civil suit against then-governor Robert Bentley that paved the way to Bentley’s resignation. Four plaintiffs bringing the suit are State Auditor Jim Zeigler (R); State Rep. John Rogers of Birmingham (D); Leslie Ogburn, a homeowner near the proposed prison site outside Tallassee, Alabama; and prisoner rights activist Rev. Kenny Glasgow of Dothan. Zeigler said there was a strategic decision to file a bi-partisan suit. “This prison plan would be a 30-year mistake. It would force Alabama taxpayers to pay rents starting at $94 million a year and going up to $106 million. At the end of 30 years, the state would own equity in the prisons of zero. No equity. This is a bad business plan,” Zeigler said. “The plan does not address the problems in the prison system – safety of staff and other inmates; overcrowding; mental health; suicide; recidivism; and inadequate job training. The plan merely throws over $3.6 billion of taxpayer money at the problems,” Zeigler said. “We thought this plan had been killed off April 19 when the two largest underwriters pulled out of the project, but the Ivey administration is stubbornly pushing forward. There are two giant signed contracts already executed. This lawsuit is needed to make sure the plan is good and dead,” Zeigler said. Here is a copy of the civil suit.
FBI launches probe after Alabama inmate activist injured
Three correctional officers are on leave as the FBI helps to investigate a prison altercation that hospitalized two officers and two inmates, including a well-known prison rights activist, the Alabama prison system said Monday. The Alabama Department of Corrections said the incident occurred between staff and inmates at William E. Donaldson Correctional Facility in Bessemer on Jan. 30. The two officers suffered stab wounds and Robert Earl Council and Ephan Moore, both inmates at the prison, were transported to hospitals for treatment for their injuries, the prison system said. Council, sometimes known as Kinetic Justice, is a prison rights activist who has been involved with prison strikes and other organization efforts. He is serving life without parole for murder. The U.S. Department of Justice has an ongoing lawsuit against Alabama alleging that state inmates are subjected to unconstitutional levels of violence from both inmate-on-inmate assaults and a pattern of excessive force. The state has denied the federal accusation. The department said it could not release additional information until the investigation is complete. “We can, however, confirm that three correctional officers have been placed on mandatory leave pending the results of the investigation. We also can confirm that the FBI has agreed to assist in conducting a joint investigation into the incident,” Corrections spokeswoman Samantha Rose said. Rose said it was not unusual to ask for federal help in an “investigation of this nature where federal law potentially may have been violated.” She did not elaborate. The prison system said Council was taken to a hospital but is now back in prison custody. Catrice Britt, Council’s niece, said her uncle was trying to intervene in an altercation between guards and Moore. “Robert Earl stepped in to help the guy. … He is in a lot of pain. He has stitches in his head, broken ribs, eyes swollen shut,” Britt told The Associated Press. Videos circulated on social media that the poster said was shot in the aftermath of the violence. The videos appeared to show a large amount of blood on the prison floor and inmates coughing from lingering pepper spray, or another chemical agent, in the air. An inmate says, “they jumped on Robert Earl.” Activists said the incident with Council and Moore needs scrutiny. “What is happening with the training?” said Kenny Glasgow, the founder of the Ordinary People’s Society, a nonprofit focused on criminal justice issues. Kenneth Traywick, another inmate organizer who is in a separate prison, said the organization effort is non-violent and said that inmate organizers have faced retaliation. “We don’t operate with violence,” Traywick said. The prison system said it is investigating the death of an inmate found unresponsive in his cell. David Lee Franklin, 31, was found unresponsive in his cell Tuesday and was declared deceased by facility medical staff, prison officials said. Franklin was serving a 10-year sentence for possession of a controlled substance out of Jefferson County Dewitt Searight, 77, passed away at a local hospital on Monday from an apparent ongoing medical issue, the prison system said. He was serving a life sentence without the possibility of parole for murder out of Butler County. Republished with the permission of the Associated Press.
