DALLAS — The LaSalle County Regional Detention Center in Encinal, Texas, financed with $23 million of revenue bonds, will receive no revenues while it is closed for repairs, according a disclosure notice filed Dec. 11.
"The Trustee does not anticipate that it will receive Project Revenues related to inmate incarceration until the repairs have been completed and inmates return to the Project," according to the notice posted on the Texas Municipal Advisory Council Web site.
US National Bank Association serves as trustee on the bonds issued in 2010 through the La Salle County Public Facilities Detention Corp. to refinance the original debt issued for the facility that opened in 2004.
Emerald Correctional Management is operator of the 566-bed facility that holds inmates awaiting trial for the U.S. Marshals service and immigration detainees for the U.S. Immigration and Customs Enforcement department.
"The inmate population at the Project had been declining and were at or near all-time lows," according to the notice. "The operator chose to empty the project of inmates, which in its estimation will allow repairs to be made more efficiently. The Trustee was not consulted regarding the decision to depopulate the Project."
Emerald told the trustee that repairs could be completed by February or March, according to the notice. "It is premature to determine whether these events will impact the upcoming principal and interest payments to be made on the Bonds in March 2015," the notice said.
