Community-Based Juvenile Reentry and Day Reporting Center

Opportunity Snapshot

  • Country: USA USA
  • Industry: Education, Training
  • Stage: Start-up
  • Investment size: $3,500,000 / min. $3,500,000
  • Type of investment: Debt, Equity

Investment Opportunity

Tennessee Training Academy’s Day Reporting and Juvenile Reentry Center (DRC) will offer highly structured programming opportunities for male youth.

Memphis TN, voted in the top five worst cities to live in all in part due to the increasing numbers in our crime rate - particularly Juvenile Crime. 11,000 youth passed through Juvenile Court last year, potentially rendering our 200 bed center full on a daily basis. Total capacity 400 (200 Day Treatment Youth) at a rate of $150-433/day.

Each year, approximately 100,000 youth under the age of 18 leave secure residential facilities, including juvenile facilities, jails and prisons, following adjudication. Many youth in the juvenile justice system struggle with educational deficiencies, mental illnesses, and substance abuse, and return to communities with high rates of crime and poverty and poorly performing schools. Youth who are released from institutional confinement are more likely to succeed if they have access to services that can help them thrive in a non-institutional environment. Reentry strategies, educational and vocational programs, housing assistance, substance abuse and mental health treatment, and life skills training can reduce recidivism and help youth build healthy, productive futures (The National Reentry Resource Center, 2012).

Tennessee Training Academy’s revolutionary blueprint will counter those needs with effective policies and strategies and culturally competent programming, carving out a national model that will alter the way we view change.

Long-Term Outcomes (2017):

• 50% reduction in recidivism rate over 5 year period following program release among the population served.
• 80% success rate among the population served in achieving vocational/other employment skill certification rate.
Tennessee Training Academy, LLC (TTA) is headquartered in Memphis, TN. The company is engaged in the acquisition of the real property located at 3420 Old Getwell Rd. Tennessee Training Academy’s Day Reporting and Juvenile Reentry Center (DRC) will offer highly structured programming opportunities for male youth.

Currently, agencies in Shelby County provide residential services along with extensive programming. However, once the youth exits the program, they are remanded to environments that adversely impact them and in most cases reverse any growth or positive progression made by the youth during their tenure in the program. Juvenile Offenders and Victims 2006 National Report, presents average rates of recidivism- 55% of juveniles who were released from incarceration were rearrested within one year of their release.

TTA’s cutting edge model sets it apart from the competition by offering Day Treatment, Restorative, and Re-entry services to Youth Detention Center Step-Downs, Community-Based, Court-Involved and Court Diverted youth and adolescents in a controlled, restorative, intensive treatment environment, while they continue their education and prepare for successful reentry into the community. This strength-based developmental model can be used as an alternative to the punitive system.
TTA enjoys a good reputation in the industry and has garnered support from entities, agencies and government that will maintain the financial strength and soundness of the company.

Although we will seek funding from other sources (ie: grants, federal, state and local programs), the majority of our funding will come from accounts receivables. We will bill contracted agencies monthly for services rendered. The agencies will pay a stated amount per head for each participant in any of our programs. That rate ranges from $150 - $200 per participant per day in the State of Tennessee and up to $433.

Competitive Advantage

• No one is offering Juvenile Reentry - only typical detention programming
• Wraparound services and Key Partnerships
• Double Minority Black, Female, Correctional Industry
• Facility is located in a Renewal Community- addl. tax break incentives

Rationale for the deal

We will generate money through State Contracts, Federal Government Funds, Grants, Private Donations, Endowments; Medicare/Medicaid Billing.

Use of financing

• Real Estate Purchase 1.9m appraising at 3.0 m
• Start-up Funding to make it through first billing phase (Net 90)

Opportunity for the investor

Creatively we can achieve our goal through debt and equity financing... Silent investor works best for us as we are a turnkey team of professionals with over 150 years of combined experience. Debt overall amounty 3.5 mill can infuse equity share up to 30%.
Investment installment schedule: 10% years 1-2, entire capital paid back plus balloon payment 10% year 3.

Looking for similar investment opportunities