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FT. MADISON -- Iowa Governor Chet Culver joined area leaders to break ground on Iowa's newest maximum security prison North of Fort Madison Thursday.

The new 800-inmate prison will replace the existing prison built back in 1839 when Iowa was still a territory.

The first dirt was moved on the $130 million maximum security prison to be built  at the Iowa Prison Farm Number One location just North of Fort Madison. Talk of replacing the aging prison here has been going on more than a decade. But after two inmates escaped in 2005, discussions have been more urgent, to protect the safety of residents.

Governor Culver said, "I'd put this project next to any in the country as far as in terms of what this means for job creation and economic development at a time when we can really use it. Workers on this project are going to get paid really good wages that they deserve.//Most importantly this means a great deal to economy in Southeast Iowa."

Rep. Jerry Kearns said, "A project like this is major and it will have an effect on jobs which is very important for this section of the state. We have high unemployment here, so it will mean a lot to us."

But despite Fort Madison's 170-year prison tradition and large work force, the city wasn't always the shoe-in for the new maximum security prison. Many lawmakers and cities from other areas of the state fought to move the new prison from Southeast Iowa to the center of the state. But Southeast Iowa leaders and legislators like Senator Gene Fraise fought to keep it. Their efforts were set in stone when lawmakers approved plans for the facility in 2008.

Governor Culver said, "The first battle that you can't underestimate was keeping the prison in Ft. Madison. There are a lot of people around the state that had big ideas about moving this facility. I had to step in on that fight and tell them what my position was."

Sen. Fraise said, "It was important that it stayed here, and the Governor recognized that we have people who understand how to deal with these people here and the community has accepted it over the years."

While Fort Madison will retain its prison and 600 jobs for the prison's employees, the two and a half year construction project means 500 new, good paying construction jobs. And thanks to a labor agreement with the state, all work will be done by *local* workers.

Construction on the new maximum security prison will begin in August with its completion set sometime in early 20-14. The new prison will increase the current prisoner population by around 250 inmates.

Governor Culver says his goal is to make this prison the best in the country, complete with the latest green technology and safety features.

Fort Madison Mayor Steve Ireland says the city and area leaders worked hard to secure the new prison in Fort Madison. But perhaps the biggest economic impact in the coming years will come from the new prison construction jobs headed to the city. He says it will mean a major shot in the arm for everyone in town.

Ireland said, "There's other factors to consider. When you hire 550 employees and that payroll goes out into the communities the size of Fort Madison, it helps the baker hire another baker, it helps the used car salesman sell more cars. It helps a grocery store sell more groceries so it has a residual effect that helps Ft. Madison immensely."

By the way, money to pay for the project won't come out of tax payer dollars.  In fact bonds to cover the prison's $130 million price tag will be paid for over 20 years by fines issued in criminal court cases.

Fines will also pay for $50 million in renovations to the state's correctional center for women in Mitchellville.