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Investors pitch private retrofit of vacant Land O' Lakes building as leased county jail
Summary
A private developer proposed converting the vacant Land O'Lakes building in Fort Dodge into a county jail financed by private investment and leased to Webster County; presenters estimated retrofit costs in the low tens of millions and proposed a lease structure that they said could be largely revenue‑neutral to taxpayers, while supervisors asked for engineering, law‑enforcement buy‑in and legal review.
Private developers pitched a privately financed redevelopment plan Sept. 23 to convert the vacant Land O’Lakes building at 2827 8th Avenue South into a county jail that Webster County would lease under a triple‑net arrangement.
Matt Johnson and Scott Underberg, who described the project as part of a broader downtown redevelopment effort, said retrofitting the two‑story, roughly 25,000‑square‑foot building could provide flexible classification space, an on‑site kitchen, booking and visitation areas and room for future expansion. Underberg, who said he has corrections experience, described using American Corrections Association (ACA) guidelines for layout and security.
The presenters provided a rudimentary budget range and said a private build‑and‑lease model could reduce upfront taxpayer borrowing. They estimated a retrofit would likely be in the low tens of millions of dollars (the presenter offered a $16 million figure as a baseline and said the range could be higher), and described a proposed lease payment they characterized orally as roughly $195,000 per month; the transcript records the presenter’s phrasing as imprecise, and the board asked for a clear, engineered cost estimate before any negotiation.
The presenters argued the model could provide local construction jobs, add bed capacity so the county would house more inmates locally (reducing payments to other counties), and potentially lease spare capacity to other jurisdictions as a revenue stream. “It’s a net 0 to the taxpayers upfront because we can also be flexible on how that first year is paid,” one presenter said, noting potential investor capital reserves and payment flexibility.
Supervisors expressed caution. A board member said the county should secure firm engineering and cost estimates and obtain buy‑in from local law enforcement and the sheriff’s office before advancing. County Attorney Darren Driscoll said he had not researched whether private ownership and long‑term private leasing of county jail space raises statutory issues in Iowa and recommended the board ask for more information and counsel review. A supervisor noted concerns about private investors earning profit from a facility used by taxpayers.
Presenters asked for county assistance in planning and engineering in partnership with the private team and for a follow‑up meeting to involve jail staff and the sheriff; supervisors suggested next steps include having sheriff’s staff and jail administration review operational security, maintenance responsibilities and contract terms before any formal negotiation or financial commitment.
No board vote was taken; the board asked the presenters to work with jail staff and county officials to develop cost estimates, engineering plans and law‑enforcement input for future consideration.
