John Tuohy

john.tuohy@indystar.com

The city estimates its costs for a proposed Criminal Justice Center on the Near Westside could be as high as $1.75 billion over 35 years.

The expenses include the cost of construction along the White River, maintenance, rent and interest payments on loans.

In its request for revised proposals sent to three international conglomerates seeking the construction and operations contract, the city demanded that the combined costs be less than $50 million a year, said David Rosenberg, the city's director of enterprise development.

Bids coming in at the maximum would amount to nearly $1.75 billion in costs to the city over the life of the 35-year contract.

All bids were submitted to the city by Friday's deadline, and the city will post the request for proposals on its website Monday.

Officials are declining to immediately release bid amounts and other details or provide an estimate of the construction costs alone, estimated at $300 million to $500 million.

The $50 million annual fee also does not include costs to staff and run operations at the justice center, which will include the Marion County criminal courts, jail and Sheriff's Office.

Rosenberg said a primary goal has been to reduce annual costs for criminal justice. Some savings are expected by combining the operations in one place, he said. The Sheriff's Office, for example, would end its $19 million-a-year contract with Corrections Corp. of America, a private prison company that manages Marion County Jail II.

The current yearly cost to operate the jail and courts Downtown is $122 million, but that figure includes staffing. It's unclear what personnel costs will be at the new building.

Three companies — based in Canada, France and Australia — are bidding to design, build, operate and maintain the complex.

The developer would borrow against that fee to secure construction financing, allowing the city to avoid taking out any debt on its own. The complex would be at the site of the old General Motors Stamping Plant, 340 S. White River Parkway, West Drive.

The preferred bidder will be selected in about four weeks after a review of the offers by a bipartisan committee from the Sheriff's Office, the judiciary and city officials, including City-County Council representatives.

Rosenberg said the city is keeping the bids secret until a finalist is chosen for competitive reasons. Even after the choice, the city will try to negotiate down the price.

"It's for leverage," he said. "We still have to complete full negotiations with the preferred bidder. If the other bids are known, we would lose leverage."

That's the same reason the city kept the overall costs under wraps until now, a controversial decision that drew scrutiny in recent weeks.

Gaining council approval could prove a bruising process. Some council members are angered that the city has spent $12.5 million already for consultants and outside legal help to prepare and review the bids and oversee construction. City officials said the developer will have to reimburse those costs.

Angela Mansfield, chairwoman of the council's Administration and Finance Committee, said she fears the justice center could be a boondoggle and is suspicious of cost estimates from the city.

"This administration has a history of rising costs on projects and doing things halfway and not in public," she said. "I don't trust it."

Mansfield claimed the cost is eroding support for the project in the sheriff's and prosecutor's offices.

But Sheriff's Lt. Col. Louis Dezelan said Sheriff John Layton remains a backer.

"He thinks it is a good project," Dezelan said. "His position is we need a new jail and that has to happen. The approval process? That's between the mayor and the council."

Call Star reporter John Tuohy at (317) 444-6418. Follow him on Twitter: @john_tuohy.