How the Industrial Authority can stop the CCA private prison: no third extension by 13 March 2012

Apparently the Industrial Authority can end the contract for CCA’s private prison six weeks from now, by simply not doing anything until then.

CCA has already paid for two extensions on their Option Agreement for land purchase. The Second Extension Term was paid for in March 2010 and forwarded to the land owner. Here’s video of Col. Ricketts announcing it to the VLCIA board 15 March 2011. That second extension expires 13 March 2012, six weeks from today.

A Third Extension Term is possible, but has to be negotiated. Here’s what Purchase and Development Agreement of 17 August 201 says: Third Extension Term. The Authority shall use commercially reasonable efforts to obtain an option for a third extension term of twelve (12) months (the “Third Extension Term“). In the event the Authority is able to obtain such extension option on terms and conditions such that any required earnest money to be paid by the Company in connection with the exercise of such extension option does not exceed $75,000, and there is no increase of the price of the Site or any other payments not already required by the Option Agreement, then the Authority shall enter into a written agreement (the “Third Extension Term“) with the Seller reflecting the terms and conditions of such extension option….
What happens if the Authority does not provide such an extension option?
5.1.2. Expiration. If the Company has not issued the NTP by the expiration of the Term of the Option Agreement, then this Agreement shall expire and terminate, without any further liability on the part of any Party to the other, except as otherwise expressly provided in this Agreement.
I am not a lawyer, but that sure seems to say that all VLCIA has to do to stop CCA’s private prison is to not provide an option for a third extension by March.

Assuming CCA has not provided “the NTP” already. What is this NTP?

1.6.2. Development Schedule: Notice to Proceed. Notwithstanding anything contained herein to the contrary and except for the due diligence provided for in Section 1.5 above, the Parties hereto shall have no obligation to proceed with design, permitting, installation or construction of the Project, prior to receiving a Notice to Proceed (“NTP”) from the Company, which the Company may issue or withhold in its absolute discretion.
But CCA can’t issue the NTP if the second extension expires.

So, has CCA already issued the NTP? If so, why wasn’t it supplied in response to the open records request?

If not, the Authority can refuse to provide a third extension, and in six weeks from now the contract with CCA terminates.

If you want to help provide the Authority with evidence of community opposition, here’s a petition to stop the CCA private prison.