New study to determine if $1.8B economic impact for prison relocation is too low

New study to determine if $1.8B economic impact for prison relocation is too low

(Chris Samuels/Deseret News)


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SALT LAKE CITY — A new study is underway at the request of a Prison Relocation Commission co-chairman to determine if the estimated $1.8 billion economic impact of developing the Utah State Prison site in Draper is too low.

The request for legislative staff to take another look at that number from House Majority Assistant Whip Brad Wilson, R-Kaysville, comes after Rep. Merrill Nelson, R-Grantsville, asked the same staff to determine if the estimate was too high.

"Since some people are questioning that number, I thought it was good to go back," Wilson said Wednesday. "I think that there’s a high probability that if you use a different set of assumptions, the numbers from (consulting firm) MGT might be low."

He said MGT of America's original estimate, made in a January 2014 report, didn't take into account the site's potential to attract high-tech jobs to the so-called "Silicon Slopes" corridor along I-15.

Instead, the Texas-based consulting firm hired by the state focused on using the nearly 700 acres at Point of the Mountain for housing and retail in estimating an economic benefit of more than $1.8 billion "in total output" annually.

The same report said state and local tax revenues "associated with this full development" of the Draper site would add up to $94.6 million annually. Wilson said looking at jobs means more income tax revenues, which are earmarked for schools.

Wilson told the House GOP caucus Wednesday that a lot has changed since the report was issued, and he had asked the Legislative Fiscal Analyst's Office to work "on some different economic development scenarios with different assumptions."

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He told fellow Republicans gathered for their monthly interim meetings that "the fundamental benefit to the state of building a new prison has gotten even stronger today than when we did the study."

Nelson, who has called the estimates "exorbitant," said Wednesday Wilson "is free to request his own study. He has his own set of assumptions that he wants reviewed, and I have mine. What I want to do is verify the assumptions of the original study."

Last session, Nelson, who represents one of four sites under consideration for the 4,000-bed prison, tried unsuccessfully to have a bill heard requiring the commission to consider rebuilding the facility on the Draper site.

Besides Grantsville near the Wal-Mart distribution center in Tooele County, the other sites are in Salt Lake City west of Salt Lake City International Airport; and in Eagle Mountain and Fairfield in Utah County.


Personally, I'd like to put this baby to bed and do something else with my time.

–House Majority Assistant Whip Brad Wilson


Both Wilson and Nelson expect to hear answers from the Legislative Fiscal Analyst's Office within a few weeks, about the same time MGT is expected to finish an in-depth study of the four sites.

Tuesday, the commission held its first and only public hearing, and heard repeatedly from residents living near the four sites that not only do they not want the $550 million prison in their communities, they want it rebuilt on the Draper site.

The commission was expected to make a recommendation on relocating the prison by the end of July, but it may take longer. Gov. Gary Herbert has said he will call lawmakers into special session to consider the commission's recommendation.

Wilson told the House GOP caucus he's now hoping they'll be ready sometime in August.

"Personally," Wilson said, "I’d like to put this baby to bed and do something else with my time."

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Lisa Riley Roche

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