GEO
#Sure.
I will touch on some of that and then I think Dave can give some color on what's going on with the Michigan facility with the State of Michigan, but I think as we've addressed before, the primary customer there is the State of Vermont.
We have a contract with the State of Vermont for up to almost 700 beds.
Currently, it's about 300 beds to 350 beds.
It fluctuates in that range that they are utilizing.
As a consequence, as we've said before, the facility is not currently cash flow positive and we continue to look for additional clients to support the facility and as you mentioned the State of Michigan has put forth some legislative effort to explore the possible sale or acquisition or lease of the facility.
I'll let Dave give some color on that as well as CAR 16.
Thanks, <UNK>.
As I indicated in my prepared remarks, there was legislative efforts in Michigan to analyze the purchase and/or lease of a facility in jurisdiction.
The Michigan Department of Corrections along with the state budget agency are currently involved in due diligence associated with that requirement in the General Assembly and anticipate that a recommendation for the North Lake facility will be evaluated over the next several weeks and a report back to the General Assembly in mid-October relative to that potential opportunity.
As it relates to CAR 16, we are optimistic that our projects will be reviewed favorably for continued use.
We have a very good relationship with the Bureau of Prisons and of our seven facilities with the 15,000 beds, operational performances at the appropriate levels and exceeding our expectations and the clients' expectations.
So we have no reason to believe that the client will not view them appropriately on a going-forward basis.
Mike, as Dave just mentioned obviously, in the case of the Michigan facility, there is some interest there around potentially leasing the facility.
Other facilities that we have that are idle has the potential.
We're also working with the state of Alabama to potentially use the Perry facility in Alabama and they're exploring a number of different ways to utilize that facility that could include a possible lease, it could include a short operations, we'll have to see how that works itself out over the next 12 months or so.
Our Hudson, Colorado, facility, which is also idle, as you know, is a leased facility already.
We lease that facility, so our main effort there is to try and reactivate it in the short term before that lease expires.
And then, I think overall, the opportunities for leaseback-type transactions will probably be on existing government assets or new assets that we might construct as Dave mentioned to replace existing assets and then enter into some sort of sale leaseback transaction.
I think they want to make their decisions before the end of the fiscal year.
So that puts some into August-September timelines.
Mike, it varies depending on if you look how you look at the unit, but I think in total, we're clearly the largest and we're 30% of the market approximately.
There are a number of different other players out there in the market and if opportunities present themselves, we might look at them, but you have to realize we think we have the best technology.
So this is a technology business and some of the growth in the contract that we're seeing are takeaways from other service providers and I think it's because of the investments that we've made in the technology and so it's not necessarily the case that we would look to acquire somebody for the technology; it's the potential maybe for the business, but we have to keep in mind that we're making these investments in the technology to grow our market share.
Their timeline was at the end of their government fiscal year.
So we are ahead of their timeline and we're just a bit over 56,000 today.
Thank you.
Well, thank you for joining us on this conference and we look forward to speaking to you on the third quarter conference call as well.
Thank you.
