SIOUX FALLS, S.D. (KELO) — Construction of new men’s prison in Lincoln has at least been delayed as a state task force studies a possible project but the city of Lennox has received $10.5 million from the state, city administrator Nate Vander Plaats said.
The South Dakota Department of Corrections and the city of Lennox agreed in November on a contract for the city to provide wastewater service to a new proposed prison between Harrisburg and Canton.
The state/DOC would pay the city $10.5 million in upfront money and then, pay its monthly fee based on use of the sewage system. Vander Plaats said during the November council meeting that the agreement included about $52,500 in a monthly payment.
“We received the $10.5 million back in December,” Vander Plaats said on Wednesday,
State officials said in 2024 $10 million of the $10.5 million was American Rescue Plan Act (ARPA) money that needed to be spent on project infrastructure needs before 2024 ended. The remaining roughly $500,000 was state general funds.
Vander Plaats said the $10.5 million has been spent on upgrades to the city’s wastewater treatment plant including a drying bed and other equipment. The city also used some of the $10.5 million for surcharge rebates to existing wastewater customers, he said.
The contract with the state, including the $10.5 million and the monthly users fees paid by the state would help to reduce project debt and provide another source of income to the city officials have said.
The system upgrades were needed, with or without the prison, Lennox officials have said.
In September, Vander Plaats said regardless of what the city does with the DOC, the city will still have wastewater improvement needs 20 or more years from now. A DOC agreement would “secure a funding source” for those needs, Vander Plaats said.
On Wednesday, Vander Plaats said a third improvement that includes an aerial mixer is on hold.
The city is not financially behind because of the uncertainty of the prison site or the possible $52,000 in new revenue from the DOC’s use of the city service, Vander Plaats said.
“We haven’t planned on those dollars,” Vander Plaats said. If the prison does use the city’s wastewater system, the new revenue wouldn’t come until 2028 or 2029, he said.
The city still wants the prison waste, which would travel about 13 miles from the possible Lincoln County site, Vander Plaats said.
“We could use the dirty water,” Vander Plaats said.
The quality of the prison waste would benefit the Lennox wastewater system, he said. It’s more concentrated waste which improves the efficiency of the wastewater system.
The system uses bugs or microorganisms to digest the waste during treatment. “We need better stuff coming in,” Vander Plaats said. “Our bugs need food to survive.”
Ryan Brunner, an advisor with Governor Rhoden’s office, said during a prison task force meeting on Thursday, the Lennox system could be still be used depending on the chosen prison site.
If a new site is within roughly 10 miles of Lennox, say to the north, Brunner said, the city’s system could still be used.
In total, Brunner told the prison task force on Thursday, the state has already spent just more than $50 million on the Lincoln County site. Brunner explained previous state legislatures authorized land purchase and design costs for a new men’s prison.
