U.S. Corrections Corp. v. Ohio Dept. Indus. Relations

1995 Ohio 102, 73 Ohio St. 3d 210
CourtOhio Supreme Court
DecidedSeptember 28, 1995
Docket1994-1290
StatusPublished
Cited by3 cases

This text of 1995 Ohio 102 (U.S. Corrections Corp. v. Ohio Dept. Indus. Relations) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Corrections Corp. v. Ohio Dept. Indus. Relations, 1995 Ohio 102, 73 Ohio St. 3d 210 (Ohio 1995).

Opinion

[This opinion has been published in Ohio Official Reports at 73 Ohio St.3d 210.]

U.S. CORRECTIONS CORPORATION ET AL., APPELLEES, V. OHIO DEPARTMENT OF INDUSTRIAL RELATIONS ET AL., APPELLANTS.

[Cite as U.S. Corrections Corp. v. Ohio Dept. Indus. Relations, 1995-Ohio-102.] Public contracts—Public improvements—Agreement for lease of correctional facilities must comply with R.C. 307.022, including the requirements of competitive bidding and prevailing wage laws. __________________ An agreement entered into pursuant to R.C. 307.022 for the lease of correctional facilities must require that either the lessor or lessee contract for the construction, improvement, furnishing, and equipping of the facility in accordance with all the requirements of R.C. 307.022, including the requirements of the competitive bidding and prevailing wage laws. (R.C. 307.022[A], construed and applied.) __________________ (No. 94-1290—Submitted June 6, 1995—Decided August 16, 1995.) APPEALS from the Court of Appeals for Hamilton County, Nos. C-920814 and C-920820. __________________ {¶ 1} Appellee United States Corrections Corporation ("USCC") is a private enterprise engaged in the business of leasing correctional facilities to political subdivisions. In the spring or summer of 1990, USCC began discussions with Hamilton County officials regarding the county's need for additional jail space. In July 1990, USCC presented a proposal to the Hamilton County Commissioners to provide the county with a new jail facility. In July or August 1990, USCC purchased, with its own funds, the old Kruse Hardware Building in Cincinnati. SUPREME COURT OF OHIO

{¶ 2} On March 29, April 5, and April 12, 1991, the Hamilton County Board of County Commissioners, the second appellee, published a notice in a newspaper of general circulation in the county. The notice provided, in part: "The Board of County Commissioners of Hamilton County, Ohio, pursuant to the authority of Section 307.022 of the Ohio Revised Code, proposes to enter into a lease for correction facilities to be used by the County. Hamilton County is seeking leased space suitable for housing 200 to 800 minimum security prisoners. The facility must comply with proper zoning, building permit and licensing requirements and may be operated privately or publicly. The lease shall be for a period of at least three years and proposals will be accepted for a term of reasonable length up to twenty years. The facility should be located in Hamilton County within reasonable access to the Hamilton County Court House and Justice Center and on or near public transportation. All proposals for such leases shall be submitted on or before April 19, 1991 * * *. The timing of the submittal is critical. The County is seeking to have such facilities available by July 1, 1991 at the latest. * * * Pursuant to section 307.022 O.R.C., the County is not required to follow the competitive bidding requirements of 307.86 of the Code in connection with entering into such leases for correctional facilities." {¶ 3} On April 19, 1991, USCC responded to the notice by submitting a proposal to lease the Kruse Hardware Building to the county for use as a correctional facility. No other proposals were received by the county. On May 1, 1991, the board of commissioners passed a resolution approving a "Lease and Correctional Housing Services Agreement" between the county and USCC. The lease agreement provided that USCC was to renovate the Kruse Hardware Building to make the facility available for use as a minimum security correctional institution.1 The terms of the lease required USCC to complete the renovations in

1. The description of the "Institution" to be leased to the county provided that:

2 January Term, 1995

accordance with a timetable set forth in Article VIII of the agreement. 2 Rental payments were to be made in accordance with Article XV of the agreement.3 Under the terms of the contract, the county agreed to lease the facility for an initial term

"The Institution is located on the corner of Sixth and Linn Streets in the Queensgate area of downtown Cincinnati. "The Institution owned by U.S. Corrections Corporation, incorporates a 3 acre site, * * * easily accessible to the Hamilton County Justice Center and to the major highways and thoroughfares in and around the City of Cincinnati. "The Institution consists of a 135,000 square foot complex of buildings which can provide more than adequate areas for all housing, program, service and administrative needs required for the successful operation of an 800 prisoner, minimum security, correctional facility by the County. "* * * "U.S. Corrections Corporation will renovate the Institution into a 800 bed, minimum security, correctional facility in accordance with all local, state and national building codes and in close adherence to the Minimum Standards for Jails in Ohio. The lower floors will be renovated for use as service and program areas for the inmate population. These areas will include a kitchen, dining room, indoor recreation areas, visitation space, classrooms, library, counseling rooms, staff training and locker [rooms] and an inmate admission area. The third through eighth floors will be used for inmate housing. These housing floors will contain large dormitories providing sleeping quarters, shower, toilet and laundry areas, security stations and recreation areas. All floors will be renovated so as to allow close supervision by trained security personnel on a 24 hour basis each day. The facility will be designed so as to provide for strict security procedures implemented for careful screening of all persons entering and [exiting] the facility. "U.S.C.C. will also provide an initial outlay of facility furnishings including beds, mattresses and pillows for 800 Inmates, lockers and partial room partitions for up to 800 inmates, along with tables and chairs in the Dining Area sufficient to feed 225 Inmates at each sitting."

2. Article VIII of the lease agreement provided that: "Upon contract signature and issuance of required building permits, U.S.C.C. shall use its best efforts to provide correctional housing for Inmates from the County on the following schedule: "Housing for 200 Inmates within 90 days ('Initial Occupancy'); "Housing for 400 Inmates within 120 days; "Housing for 600 Inmates within 150 days; "Housing for 800 Inmates within 180 days ('Final Occupancy')[.] "The facility is now and has been for at least six (6) months prior to the date hereof suitable for use and occupancy as a manufacturing/warehouse facility. U.S.C.C. will perform renovations necessary to suit the facility for use as the Institution per the above timetable." 3. Article XV of the lease agreement provided: "The County shall pay U.S.C.C. as rent for the use of the Institution, as follows: "A. Commencing with the first full month after U.S.C.C. has made available to the County beds for 800 Inmates (the 'First Fully-Available Month'), the County shall pay as rent * * *($170, 333.34) per month. "B. Prior to the First Fully-Available Month, the County shall pay to U.S.C.C. Seven Dollars and Ten Cents ($7.10) per bed per day for each bed made available to the County on each day in that month, assuming a thirty day month. * * *"

3 SUPREME COURT OF OHIO

of three years and ninety days, with an option to renew the lease for two additional periods of one year each. {¶ 4} After the lease agreement had been executed, USCC began renovating the old Kruse Hardware Building to make it suitable for use as a minimum security prison. USCC directly contracted and paid for the improvement, furnishing, and equipping of the building to meet the terms of the lease agreement.

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1995 Ohio 102, 73 Ohio St. 3d 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-corrections-corp-v-ohio-dept-indus-relations-ohio-1995.