Elk Grove City Council Approves Prison Incentive Plan

With little dissension and lots of enthusiasm, the Elk Grove City Council unanimously approved a $3.3 million incentive plan that will help relocate up to 1,500 medical administration jobs of the California Correctional Health Care Services(CCHCS) to the city. The CCHCS will receive $1.9 million and the developer of the offices that will house the department, Pappas Investments, will receive $1.4 million.

After hearing a presentation from city economic developer coordinator Heather Ross that claimed the city would receive $3 to $4 million economic benefit from the new jobs, Councilman Gary Davis questioned the method for determining the estimates. Ross said the numbers were based on projected sales tax revenue increases and from a consultant study.

One member of the public who questioned the incentive was Elk Grove resident Lynn Wheat. Citing the California Constitution Article XVI, Section 6, Wheat asked if the incentive given to Pappas was in fact a gift and therefore unconstitutional.

Interim City Attorney Jonathon Hobbs quickly stated the incentive was constitutional. "This is not a gift, the city is getting a benefit," Hobbs said.

During council deliberation Davis said the incentive plan was crucial in attracting the CCHCS. "They would not have selected Elk Grove if not for the incentive program," Davis said.

Mayor Steve Detrick said the additional 1,500 jobs will help ease the city's job-resident imbalance.

"This is one of the biggest issues Elk Grove has faced," Detrick said. "I am 100 percent in support of this."

While expressing support for the incentive, Councilman Pat Hume voiced concern about drawing down funds from the general reserve to six percent of the city's annual budget. "That's not a healthy place to be," he said.

Before taking their vote, the council heard a brief presentation from the Zack Miller, a representative of the Federal Receiver currently running the CCHCS. Miller said the economic benefit for the city would be substantial and could lead to more state offices relocating to the city.

"We need one to get a second," Davis added.