Hoosegow cash cow

Saturday, 10 March 2012 02:00 ROY WOOD Kelowna Daily Courier:

The recently announced provincial jail near Oliver will have a 20-year financial impact approaching a billion dollars on the South Okanagan, says Penticton's economic development officer.  In a 2011 report to Penticton chief administrative officer Annette Antoniak, David Arsenault said: "We estimate that the overall direct and indirect economic impact of the facility in the South Okanagan will add an additional $824 million in new revenue to our local economy in the next 20 years."  The report was written with Penticton in mind as the site, but Arsenault said in a recent interview the overall numbers still pertain even though the site will be about 30 kilometres south of the city.  The provincial correctional centre, announced early last month, will be built just north of Oliver on the Osoyoos Indian band's Senkulmen Enterprise Park, adjacent to the Jackson-Triggs winery.  The project is a partnership between the B.C. government and the Osoyoos band. Negotiations will involve "hundreds of meetings" with the province, said band Chief Clarence Louie.  However, Louie is hopeful the details can be worked out in a matter of months.  The provincial Ministry of Justice estimates that once a "comprehensive business case" has been developed, "we hope to go from shovels in the ground to full operations in 30 months." That would mean a likely opening in late 2015 or early 2016.  Construction will cost an estimated $200 million. According to the B.C. Construction Association, a project of this type would provide five person-years of employment per million dollars of construction cost, which translates into 1,000 person-years of employment work for the South Okanagan construction industry.  As for ongoing  employment, a release from the ministry says the new jail "will directly employ about 240 correctional staff. In addition, a number of contracted staff will work on site, like nurses, doctors, dentists, food service workers, trades personnel and counsellors."  According to Arsenault's report, the 893 direct and indirect jobs associated with the correctional centre will result in an annual payroll of about $40 million, leading to $2.3 million in provincial tax revenue and $2.6 million in local taxes.  For Penticton, Arsenault said, there will be increased traffic at the airport along with increased need for health, counselling, legal, food preparation, educational, security and other services. (more)