Chapter 168: Project Approved
[Chapter 168: Project Approved]
Katherine had left.
As she walked away, her steps were a bit unsteady, and her police uniform was wrinkled.
Ian, on the other hand, acted as if nothing had happened and continued with his work.
Katherine was different from the other women; she had her own temper and pride, but she was also quite useful.
So in Ian's eyes, her only purpose was, as Gaskill had said, to be controlled and to serve him.
This made everything feel like completing a task assigned by Gaskill, even though it was indeed satisfying.
...
After sending the news to James Perry, James called back swiftly.
His tone was heavy as he said, "I know what's going on. I didn't expect Ivor to do this. Ian, I know this request might be a bit much, but Ivor is a golden reporter for CBS, and he brings a lot of good news every year. I don't want to ruin him just like this... I'll make sure he gets a good talking to."
Ian listened quietly without responding.
James continued helplessly, "He's a free agent; you don't need to drive him over to another company. That would be a loss for you as well. In business, you can't let emotions dictate your decisions; sometimes the money we earn is the money we tolerate."
Ian chuckled lightly, "James, I consider you a friend. For the sake of our friendship, I can accept your suggestion to forgive him, meaning I won't take any action. But he must show some remorse, don't you think?"
"Of course," James replied immediately. "I'll have him apologize to you."
Ian quickly added, "I don't need an apology; it means nothing to me. Let's do this: I'll arrange some tasks for him, and he has to do them well. But if his work doesn't meet my standards..."
James laughed, "Then he's just asking for trouble himself."
"Great. The person in charge of negotiating the Oscar broadcast rights for the Academy Awards is Danny Chalin. He has a preference for men. Have Ivor Clements handle that, but remember, this isn't helping me; it's helping you. I have other jobs for him after this one as well."
"Thank you so much, Ian."
"Anytime."
When the call ended, Ian sat in his seat, reflecting thoughtfully.
---
The Bloods case had passed.
Not long after, good news arrived.
The state legislature officially approved the contract for prison privatization, but discussions were still ongoing for the California Highway 1 renovation project.
According to the contract terms, California needed to pay $20,000 a year for each inmate at the newly built Davis prison. This price was relatively inexpensive; some prisons charged as much as $23,000 per person.
They also had to ensure that the occupancy rate remained above 90%, otherwise, they would face additional charges, which was a common practice in U.S. prison contracts. In 2012, for instance, Arizona had to pay an extra $3 million to its contractor for not meeting the promised 97% occupancy rate.
If a hotel could secure such stable clientele, you could bet the owner would be grinning from ear to ear!
Ian had been fair, only asking for a 90% occupancy rate, primarily because he still lacked a solid foundation in California and needed to make more concessions.
Three thousand criminals would bring Ian an annual income of fifty to sixty million dollars.
But that was just the tip of the iceberg; the real profit was in the fact that these inmates were free labor, which would generate additional profits for the contractor.
Additionally, in order to generate revenue from inmates, the prison would not only exploit the criminals themselves but also their families.
If you wanted to listen to music or watch movies in prison, or buy small items, you had to pay extra, and the prices were significantly higher than outside. They also offered VIP rooms, where wealthy individuals could enjoy single accommodations with private bathrooms, all for a price.
In theory, a prison with three thousand inmates could net a profit of fifty million dollars a year after operating costs were deducted, assuming the client base was stable and there were no complaints.
Running dozens of such facilities could easily yield over a billion dollars a year.
For Ian, there was an additional benefit: he could have complete control over the projects from start to finish.
Therefore, the prison business had vast hidden benefits since those who could end up there were not your average individuals.
...
Although the funds for establishing the prison came from the California Highway 1 project, that didn't stop Ian from getting started right away. Jude Halley, the head of the company, suggested that there was no need to build from scratch; they could buy a dilapidated building and renovate it, minimizing costs.
After all, prisons primarily consisted of iron bars, walls, barbed wire, and a significant number of guards -- there was no complexity involved.
Those so-called high-tech security systems weren't necessary for prisons; at most, they added some cameras, considering that not everyone was a Stallone.
The occasional escape didn't have much impact -- it just meant losing a bit of revenue.
...
Ian found this to be quite sensible, so he scout around and indeed found a dilapidated motel in the suburbs.
This motel was on the verge of closing down due to mismanagement; interestingly, their creditor was Lino Bank.
So, Ian proceeded to buy the motel without spending actual cash -- he just transferred the $30 million in debt to himself and then had the company start renovations.
...
Because it was the owner's project, and since converting a prison was easier than constructing one from scratch, the building company worked tirelessly, and following Jude Halley's idea, they could complete the renovations in about seventy days.
He also wanted to show Ian that his workers were no worse than overseas laborers!
Ian responded, "I believe American workers are just as capable, but I trust value for money even more!"
He planned to use overseas workers for the California Highway 1 project and intended to continue with other infrastructure work -- he only promised to let the immigrant workers leave the company's projects in the end; he hadn't committed to not purchasing from other construction companies or taking on additional projects.
As for the remaining 20% of workers, it was even simpler.
What kind of work would the inmates do?
Jude Halley was dumbfounded, "So you're not offering any employment opportunities to society?"
It was foolishly optimistic to expect workers to stir their bosses' conscience through their own efforts.
Although Jude Halley came from a background of being a boss himself, he surprisingly failed to grasp this basic principle.
But whether one liked it or not, the important thing was to get the job done.
The contacts on the overseas side had already been made, and they were very interested in working here.
After all, an annual income of $20,000 was pretty enticing for workers from any thrid world country. Earning $20,000 would certainly attract a lot of attention, but even still, that amount wouldn't be half of what local American workers earned, especially when efficiency was considered.
...
Soon, after Ian ramped up his financial push, the California state legislature finally preliminarily approved the renovation of California Highway 1, but they didn't approve Ian's request for building a hospital, citing a lack of funds.
"Why build a public hospital when we have private ones?"
This left Ian feeling disappointed.
For this reason, Isolt Cherry told him, "Don't worry; while the hospital can't be built, we can increase the cost for the highway project, as long as you're willing to contribute more money."
Ian generously agreed.
The initial budget of $1 billion to complete California Highway 1 as well as the construction of a hospital and prison was reduced due to insufficient state spending, with the hospital project cut.
Meanwhile, the budget was increased to $1.2 billion for completing the highway renovation and prison construction.
This was rather interesting!
Ian concluded that he really was a little too naive and way too soft-hearted.
*****
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