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Saint Joseph County approves seven-year lease and service contracts with Rite of Passage at Juvenile Justice Center
Summary
The Board of Commissioners approved a seven-year lease and two service agreements with Rite of Passage, Inc. for the Juvenile Justice Center (JJC). The agreements raise rent and service payments, include a limited bailout clause tied to funding loss, and drew public comment citing prior contract problems in other states.
The Saint Joseph County Board of Commissioners on Sept. 9 approved a seven-year lease and two related service agreements with Rite of Passage for space and programs at the county Juvenile Justice Center.
Probate Judge Laura Sappy presented the agreements, saying the three contracts begin Sept. 1 and will be paid retroactively. “The lease agreement and the other 2 contracts all extend 7 years,” Sappy said. She told the board the lease will increase to roughly $12 per square foot from about $8.03 per square foot, hold for the first two years, then rise 3% compounded annually thereafter.
The county described the financial effect at length. The lease increase over seven years is $1,358,172. Service agreements — one with DePaul Academy and one with Safe Passage (both under the Rite of Passage umbrella) — together increase by $425,820 over seven years. The county said the combined increase for all three contracts over seven years is $1,783,992.
Sappy said the service agreements were simplified and adjusted because some previously promised services were not actually provided and costs such as utilities and food had exceeded prior charges. She gave monthly starting figures: Safe Passage would begin at $40,600 per month and DePaul Academy at $25,375 per month; both service payments will rise 2% annually, the county said.
The contracts include two termination provisions the county reviewed: a one-year voluntary termination notice (longer than the county’s prior 90-day standard) and a limited “bailout” clause that allows termination if the provider loses essential funding that makes operation impossible. Sappy said the bailout clause is narrowly tailored to loss of funding and the county retains a 10-day remedy if rent is not paid.
Commissioners asked whether program performance metrics (KPIs) would be available; Sappy said reporting required by the Indiana Department of Child Services and licensure would provide data and that the provider had offered to host tours for commissioners.
During public comment, Nancy Duncan of Blair Hills, Mishawaka said she had found evidence that Rite of Passage previously lost a contract in Arkansas and had problems in Colorado. “I saw that rite of passage, had their contract revoked in Arkansas because of abuse of minors,” Duncan said. The board’s response, as stated in the meeting, was that the provider — as a lessee and operator on county property — assumes operational responsibility and liability for incidents on its premises, and that the judge will continue monitoring program performance.
The board voted separately on each of the three items. Motions to approve the lease, the DePaul Academy service agreement and the Safe Passage service agreement were moved and seconded; recorded votes were Aye from Commissioner Morton, Commissioner Hazen and Commissioner Maxmeier on each motion. Each motion carried.
The commissioners and staff said the longer term (seven years) provides stability for the JJC and avoids renegotiating contracts around judicial election cycles.
Ending: County staff will finalize and circulate the executed agreements and the board indicated it can request additional program performance information from the provider if desired.
