Criminal Justice Center

State-of-the-Art Facility Set to Transform County’s Criminal Justice Operations

Wayne County officials will officially open the doors, on Tuesday, September 3, to the newly completed Wayne County Criminal Justice Center (CJC), a state-of-the-art facility that marks a significant milestone in the county's criminal justice system. The project, which spans over 11 acres and more than one million square feet across seven buildings, is now fully operational.

"The opening of the Criminal Justice Center ushers in a new era of justice for Wayne County,” said Wayne County Executive Warren C. Evans. “This state-of-the-art facility is more than just a building; it represents our unwavering commitment to creating a fairer and more efficient justice system for all. By ensuring that justice is accessible and equitable, we’re taking a significant step forward in our journey toward a more just future for Wayne County."

The CJC is designed to centralize Wayne County's criminal justice operations, housing a criminal courthouse, adult, and juvenile detention facilities, over 1,400 office spaces for various criminal justice departments and law enforcement, and a central utility plant. This comprehensive facility replaces several outdated structures, creating an integrated hub for the county's criminal justice demands.

“I thank CEO Warren Evans for his vision for a 21^st Century Criminal Justice Center. This was a huge undertaking and I applaud all the stakeholders for their unrelenting work to bring this project to fruition. Wayne County citizens will certainly benefit from having all the criminal justice entities in one safe and secure new space,” said Wayne County Prosecutor Kym Worthy.

The new facility includes 26 criminal courtrooms, will house nearly 2,500 adult inmates and juvenile residents, and will welcome upwards of 1,000 visitors each day – all with free parking.

The CJC’s Juvenile Detention Facility (JDF), spanning nearly 111,000 square feet and licensed to house 120 residents, is designed for innovative, restorative rehabilitation. It includes outdoor recreation spaces, basketball courts, a multi-purpose space, a modern workout facility, a library, and arts and crafts programs to promote personal growth. The JDF administrative offices will be housed in Criminal Justice Center, improving resident care and family support.

“Our move to the CJC is a long-awaited transition that will now enable us to better serve our resident population with the dignity and quality care they deserve,” said Wayne County Sheriff Raphael Washington. "It has centralized several of our services and boosted staff morale in the process."

The CJC will streamline many court-related processes, including ticket handling and fine payments. Its integrated IT system promises enhanced access to justice for Wayne County residents using state-of-the-art technology, including video arraignments, visitations, and remote hearings.

“The opening of the CJC allows us to utilize state-of-the-art court technology in a larger space more conducive to all visitors to conduct their business. It also supports our ability to provide a safe environment for all, helping to build trust between members of the community, the Court and all our Wayne County partners,” said Chief Judge Patricia Perez Fresard of the Third Judicial Circuit of Michigan. “The new CJC provides a higher level of service for the Wayne County community, providing a higher level of convenience and comfort. This benefits other court stakeholders as well from judges and defendants to attorneys and employees.”

“The Wayne County Clerk’s Office Criminal Records Division will be streamlined for customer’s criminal court related business. Financial services and criminal court records can be easily accessed in the Clerk’s office on the 1st Floor of the CJC,” said Cathy M. Garrett, Wayne County Clerk.

“This long-awaited day represents a major step forward in criminal justice, not just for Wayne County but also nationwide. This state-of-the art complex brings together all branches of our criminal justice system, from the sheriff’s department to the prosecutor’s office to our courts. It will also provide a major step forward in the physical care and mental health care for those who are incarcerated,” stated Alisha Bell, Wayne County Commission Chair.

“The realization of the Wayne County Criminal Justice Center stands as a significant milestone in the county's ongoing efforts to modernize and improve its criminal justice system, ensuring a safer, more efficient future for all residents,” said Wayne County Corporation Counsel James Heath.

The CJC is located at 5301 Russell Street between East Warren Avenue and East Ferry Street just off the I-75 Service Drive.

For more information, please visit the Wayne County Criminal Justice Center website at: www.WayneCounty.com/CJC.

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County to Begin Transition to State-of-the-Art Facility

Wayne County has officially taken possession of the new Wayne County Criminal Justice Center (CJC), initiating the transition to the modern facility. The County and Bedrock Detroit have completed the key exchange process and the County has taken full control.

The CJC footprint is over 11 acres, comprising over one million square feet across five buildings. The center will house a criminal courthouse, adult, and juvenile detention facilities, more than 1,400 office spaces for various criminal justice departments and agencies, and a central utility plant, consolidating several existing facilities into a single and integrated hub.

“As we take possession of the new Wayne County Criminal Justice Center, we're not just opening a facility, we're ushering in a new era for our justice system,” said Wayne County Executive Warren C. Evans. “This center symbolizes our dedication to turning challenges into opportunities and our relentless pursuit of excellence for the benefit of every resident in Wayne County.”

The CJC is designed to streamline numerous court-related processes through automation, such as ticket handling and fine payments. Its integrated IT system is set to enhance access to justice for Wayne County residents, offering advanced solutions like video arraignments, visitations, and remote hearings.

“We are excited about the move to the new Criminal Justice Center as it will increase our ability to serve our resident population, boost employee morale, and showcase the level of professionalism that we operate under,” says Wayne County Sheriff Raphael Washington.

The March 18^th turnover date means that the County now has 180 days to move into the CJC and vacate Jail Divisions 1 & 2; the Juvenile Detention Facility, and Frank Murphy Hall of Justice, each of which were transferred to Bedrock in July 2018 according to the terms of the Development Agreement.

“The realization of the Wayne County Criminal Justice Center stands as a significant milestone in the county's ongoing efforts to modernize and improve its criminal justice system, ensuring a safer, more efficient future for all residents,” said James Heath, Wayne County Corporation Counsel.

“The turnover date is Day One for a new era of criminal justice in Wayne County. It is a day that should be welcomed not only by those who will work at the new center but by all Wayne County residents,” Wayne County Commission Chair Alisha Bell said. “For too long, we have administered criminal justice in old, outmoded facilities. Now, Wayne County will lead the state and the nation in providing modern, state-of-the-art facilities. Through our special committee on the center, the commission has kept a close eye on the center and its development. We have worked closely with the executive’s office and all involved parties to make this new center a reality.”

While our end users and transition staff will be focused on these tasks, other County officials will turn their attention to continued discussions with Bedrock regarding disputed financial issues such as environmental costs and other matters. The parties hope to resolve these issues by May 2024.

“Wayne County should take pride in the conversion of a project, once symbolic of waste and inefficiency, now a beacon of excellence. What was a DDOT garage is now a Criminal Justice Center reflecting our commitment to providing the best possible infrastructure for our community,” Evans stated.

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"The proposed Criminal Justice Center is a very complex deal. We have worked very hard for a long time to get it right. Simply put, it is what Wayne County needs. The tentative agreement we have reached with Rock Ventures is a good deal for the citizens of Wayne County and it is the best deal we could have hoped for given the circumstances. In that spirit, I am pleased that the Wayne County Commission voted in favor of the land exchange between Wayne County and the City of Detroit which gets us a step closer to finalizing this project."

Warren C. Evans
Wayne County Executive

TODAY, I am submitting to the Wayne County Commission and the Wayne County Building Authority for approval of a "Development, Purchase and Sale Agreement" between Wayne County and Rock Development Corp.

This Agreement provides for Rock to build the County a "Criminal Justice Center" comprised of a new jail, criminal courthouse, juvenile detention facility and administrative offices for the Prosecutor and Sheriff.

This is a good deal for Wayne County.

I. HISTORY: FAILED JAIL FIASCO COMPOUNDED BY FISCAL CRISIS

It's been a long road trying to solve the Gratiot jail fiasco. It's had twists and turns and more curveballs than I want to count.

Before we talk about the terms of this agreement, it's important to discuss how we got here and all the steps we needed to get a deal done.

As we know all too well, Wayne County poured $150 million of taxpayer dollars into a failed-jail project. Cost overruns led the previous administration to suspend construction in 2013.

This eyesore of a partially-built jail has been sitting since 2013 with everyone knowing it would take hundreds of millions of dollars to solve this fiasco. It's been an albatross around the County's neck weighing us down both financially and mentally.

From the time construction was suspended until I took office in January 2015, alternative solutions were discussed.

None were feasible because the underlying fundamental problem had not been dealt with: Wayne County's finances were a mess. The cost over-runs on construction of this jail did not create Wayne County's financial problems. It just made them worse.

When I took office, it was clear that solving the jail problem would require borrowing a great deal of money.

We needed to strengthen Wayne County's finances before we could solve our jail problem.

At the same time, we needed to determine the best solution, so we could proceed expeditiously once we addressed our fiscal crisis in a manner that would put us in a position to borrow the money necessary to solve this problem.

In addition, the County was embroiled in expensive and protracted litigation arising from the construction of the "failed jail." Millions of dollars had already been spent in attorney fees litigating this case. We realized, it would have been difficult, if not impossible, to pursue a solution while this litigation was pending.

Let's start by talking about the finances.

II. IMPROVING WAYNE COUNTY'S FINANCES WAS NEEDED BEFORE JAIL FIX

To solve our financial crisis, adequately, I had to find out how deep the County's financial hole was.

External auditors from Ernst and Young gave me the answer: A structural yearly deficit of about $50 million, an accumulated deficit of about $80 million, unfunded future health care benefits of $2.4 billion and a pension system with only 44% of what it needed for future obligations, almost, $900 million short of being fully funded.

The County needed a "Recovery Plan" which I issued in April 2015. Then, we needed a Consent Agreement with the State to provide us with adequate authority to implement the "Recovery Plan."

Through the significant help of the Wayne County Commission, we implemented the "Recovery Plan" and significantly improved the County's finances.

We eliminated BOTH the accumulated and structural deficit and have achieved significant surpluses the last three years.

We reduced our health care liabilities by over a billion dollars and improved the funding of our pension system from 44% to 54%. As a direct result, Wayne County received numerous bond rating upgrades.

Wayne County is now in a much stronger financial condition and we can now borrow the money needed to solve our jail problem.

III. IMPROVED FINANCES CLEAR WAY FOR JAIL SOLUTION WE COULD AFFORD

As Wayne County's finances improved, we needed a realistic assessment of the possibility of finishing the partially built Gratiot jail.

Accurately analyzing the site was not possible considering the key players in the "failed jail" with key information were embroiled in complex litigation.

Consequently, after months of discussions, in July 2016, the County settled the jail construction litigation with AECOM and Ghafari.

We then entered into a consulting contract with CGL to determine the feasibility of a design/build to complete the Gratiot jail.

We then issued a request for qualifications to identify companies who would be qualified to respond with proposals to complete the jail project.

We received one response to our request from Walsh Construction.

However, prior to Walsh's response, we received an unsolicited proposal from Rock proposing to build a new criminal justice complex for the County.

Simultaneously, we began evaluating the Rock proposal while Walsh prepared their response.

We thoroughly vetted the Rock proposal and Walsh's response.

After a deep dive into the Walsh proposal, it became clear that finishing the Gratiot jail would not only be cost prohibitive but would require the County to remain at risk for cost-overruns, which was the death knell of the failed Gratiot jail.

Pursuing the Rock proposal was the only viable option for a new criminal justice center. Rock and its consultants worked tirelessly with my executive team, the Wayne County Sheriff's Office, the Wayne County Circuit Court, the Wayne County Prosecutor's Office and the Wayne County Clerk's Office in order to develop a program and understand exactly what the County needed in buildings that would adequately serve the County's criminal justice system.

Thousands of hours were spent in an effort to reach this agreement. It is complicated and complex, but it is a good deal for Wayne County and its taxpayers.

The effort to reach this Agreement took over a year and countless negotiation sessions.

Often, attempts at reaching an agreement looked bleak. However, through the perseverance of my team and the Rock team, an agreement was reached.

I wish to thank the professionalism and hard work of the Rock team and Dan Gilbert, for pushing them to stay engaged when success seemed remote.

IV. AGREEMENT WITH ROCK: A GREAT VALUE DEAL FOR WAYNE COUNTY

This Agreement requires Rock to build the County an entirely new "Criminal Justice Center" on land the City of Detroit has agreed to swap with the County, pending Wayne County Commission and Land Bank approval.

The budgeted cost to build this "Criminal Justice Center" is $533 million.

The County will invest $380 million of the budgeted amount and transfer ownership to Rock of the County Parcels occupied by the County's Division I and II Jails, Juvenile Detention Center and Frank Murphy Hall of Justice.

Rock will cover all costs above the County's investment and be responsible for all cost overruns.

If the cost of constructing this "Criminal Justice Center" is less than the budgeted amount, the County and Rock will share those savings based on a schedule included in the Agreement.

While we've had to wait far longer than I wanted to reach a deal, the County is getting significant value.

In a Broker's opinion by Colliers International, the pre-demolition valuation of the County Parcels was between $62 million and $84 million, and the demolition costs could be upwards of $30 million.

Consequently, the difference between Rock's financial commitment to build this "Criminal Justice Center" and the value of the land they are receiving from the County is considerable.

PAYING FOR A HALF BILLION DOLLAR DEVELOMENT DEAL: WE GOT CREATIVE

Negotiating this deal was extremely complicated. We had to be creative.

The County will pay its portion of the construction costs with bond proceeds remaining from the failed-jail project on Gratiot, new bonds specific to the current project and some general fund dollars.

Wayne County's bond counsel has advised the administration that the transaction, as structured, will satisfy applicable federal tax requirements based upon discussions with the IRS.

The County expects to obtain the appropriate bond issuance for the project this summer and believes our improved financial position will lead to a lower interest rate, ultimately, saving the County and its taxpayers millions of dollars.

The County and Rock, also, have agreed to a parking concession for certain parking spaces on the criminal justice center site and nearby lots.

Rock will operate and collect parking revenues from these sites until $30 million in present value net revenue is collected by Rock. At that point, the County will take over operation of the parking lots.

Under the parking concession agreement, the County retains complete control of approximately 119 secured parking spaces for use at the County's discretion without cost.

The parking fees charged to the public by Rock are controlled by the terms of the Agreement and Rock is required to make available for County employees 800 spaces at the monthly rate set out in the Agreement.

HOLDING ROCK ACCOUNTABLE: WE HAVE OVERSIGHT

In negotiating this deal, we needed to ensure that the County has proper oversight, not only of the construction, but also the investment of funds.

Inclusion of Wayne County suppliers and workers as much is allowed was also very important.

Not only have we built in requirements in the development of Gratiot but also in the over a half billion dollar project to ensure that Wayne County businesses and employees benefit from its construction, but also efforts to ensure participation by disadvantaged businesses.

The County reserves the right to audit Rock's records with respect to the construction costs of the "Criminal Justice Center", Rock's investment and development of the transferred County Parcels, and Rock's revenue collections under the parking concession agreement.

After conveyance of the County Parcels, Rock will lease them back to the County for $1.00 per year until the Criminal Justice Center is complete and the County can fully transition to the new facilities.

As part of the deal, Rock has agreed to a number of requirements for the development of the County parcels, including:

a. constructing a first-class, mixed-use development;

b. investing at least $250 million in the development of these parcels;

c. performing extensive outreach to County based businesses for their participation in the development of the County parcels; and

d. employing at least 51% Wayne County residents in the jobs required for the development of the County parcels.

e. contributing $500,000 to parks located in Wayne County and $250,000 to support career and technical education programs for previously incarcerated citizens.

Many of these same requirements apply to the new criminal justice project, including requiring performing extensive outreach to County-based businesses and employing at least 51% Wayne County residents.There are extensive requirements to work with employment organizations, such as the Detroit Employment Solutions Corp and SEMCA as well as the County.

The master schedule expects Rock to complete the Criminal Justice Center in the spring or summer of 2022. That, of course, assumes starting in October 2018.

The Criminal Justice Center is required to be designed and constructed in accordance with "Outline Specifications" approved by the County.

The County retained the authority to approve the design as it moves from schematic design documents, to design development documents, and finally to construction documents.

GRATIOT: A SYMBOL OF FAILURE IS COMING DOWN THIS SUMMER

Based on the project schedule, Rock expects to commence demolition of the failed Gratiot jail shortly after approval of the deal and likely this summer or fall.

This will mark the end of our region's most notorious symbol of government failure and allow us to enter a new era in Wayne County.

This has been a long, arduous process, and we are still a long way from the finish line. For the first time, however, since construction was suspended in 2013, we have an achievable path forward and the outlook is positive. There is a light at the end of the tunnel and there is no incoming train.

We will continue to do everything within our means to build the Wayne County government our 43 communities deserve - and soon, we'll no longer have to drive by a rusty, stalled jail every day as we chart out the future of our County and City.

Wayne County Executive Warren C. Evans today announced a tentative agreement with Rock Ventures to build a new $533 million criminal justice center, providing the County with four state-of-the-art buildings as a solution to its long-stalled Gratiot jail project. As part of the deal, the County would invest $380 million with Rock covering the remaining costs and any overruns.

"We made the best of a tough situation and have a definitive path forward to address the failed jail project. It's been an albatross for the County for far too long," Evans said. "At the end of the project we will have an entirely new criminal justice complex, and most importantly, the County's construction costs are capped. We now know what we are going to pay and can budget accordingly. That better positions us to tackle other facilities and infrastructure challenges beyond our jails."

As part of the deal, the newly constructed criminal justice center will house the County's 2,280-bed jail, sheriff and prosecutor staff and administrative offices, criminal courthouse and juvenile detention facility. The center will be completed on property bounded by the I-75 Service Drive and East Warren Avenue, which is being acquired from the City of Detroit. Key components of the deal, which now head to the County Commission and Building Authority for approval, include:

• Completion is expected in spring/summer of 2022, with Rock responsible for estimated costs of about $153 million, as well as any cost overruns;
• If the actual cost of the criminal justice center is less than the budgeted amount, the County and Rock will share the savings based upon an agreed to schedule;
• Rock will operate and collect net parking revenues capped at $30 million present value for various parking sites around the criminal justice center, after which the County will take over operation and collection of parking revenues. The County, however, retains complete control of 119 secured parking spaces for County use at no cost;
• Rock has agreed to invest at least $250 million into a mixed-used development on the properties it acquires from the County, while utilizing at least 51% of Wayne County residents in the jobs required for development of the properties; and
• Rock agrees to perform outreach to County-based businesses for their participation.

· Rock will contribute $500,000 to parks located in Wayne County and $250,000 to support career and technical education programs for previously incarcerated citizens.

In exchange, the County will transfer to Rock, the existing Division I and II jails, juvenile detention facility and Frank Murphy Hall of Justice. Upon approval and execution of the deal, these parcels will be leased back to the County for $1.00 per year until the criminal justice center is complete and the County has transitioned to the use of the new facilities. Rock will also, in a separate transaction, purchase, the property where the unfinished Gratiot jail is located.

The County will pay its portion of the construction costs with remaining bond proceeds from the Gratiot failed jail project, new bonds specific to the current project and some general fund revenue. Based upon discussions with the Internal Revenue Service, Wayne County's bond counsel has advised the administration that the transactions, as structured, will satisfy applicable federal tax requirements.

"This has been an extraordinarily complex process involving over half a billion dollar development deal with land acquisition from a third party. I couldn't be prouder of my team, for all the work it took in reaching the best possible solution," Evans said. "I'm also pleased that building the new jail will allow us to close the County's three existing jails, leading to improved efficiency, cost-savings and addressing the long-standing poor conditions."

Under terms of the deal with Rock, Barton Malow will serve as the general contractor while Hellmuth, Obata & Kassabaum, Inc. will serve as the architect. The County retains the authority to approve the designs as it moves from schematics to development and finally construction. The criminal justice center must be designed and constructed in accordance with "Outline Specifications" as approved by the County.

The final purchase agreement on the land swap deal with the city of Detroit still requires approval of the Wayne County Commission and the Wayne County Land Bank, which owns the AMC property.

News, updates and related documents to the criminal justice center will be posted at WayneCounty.Com/jail.

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