The private prison company CoreCivic has sold two of the largest immigration detention facilities in California to the U.S.
The Afternoon WireDemocrats begin pulling Platner endorsements after Maine candidate faces sexual assault allegationMerino's late goal sends Spain to quarterfinals and ends Ronaldo's World Cup careerTaylor Swift’s wedding dress designer lets art, not celebrity, lead at DiorAP Entertainment WireViral phenomenon in Argentina has young people identifying themselves as animalsGhana's fantasy coffins are a colorful celebration of life and legacyWhy losing weight isn't just about counting calories — and what to do about itAt the Kaaba during Hajj, a photographer captures sense of unity and devotionAs East Africa’s oceans change, coastal women build new livelihoodsObamacare rolls shrank dramatically in many states over the past year, new federal data showsWhat to know about Legionnaires' disease making people sick on New York's Upper East SideYouTube defends video that falsely claims Sydney massacre survivor is 'crisis actor'A hot dog Reuben is the deli classic you didn't expect to make in an air fryerAs Pope Leo faces traditionalists' schism, a Minnesota church merges old customs with fidelityTrump toca campana de apertura de Wall Street, trata de vincular su presidencia a alzas bursátilesThree tankers hit in the Strait of Hormuz as US revokes license authorizing sale of Iranian oilDemocrats begin pulling Platner endorsements after Maine candidate faces sexual assault allegationMerino's late goal sends Spain to quarterfinals and ends Ronaldo's World Cup careerTaylor Swift’s wedding dress designer lets art, not celebrity, lead at DiorAP Entertainment WireViral phenomenon in Argentina has young people identifying themselves as animalsGhana's fantasy coffins are a colorful celebration of life and legacyWhy losing weight isn't just about counting calories — and what to do about itAt the Kaaba during Hajj, a photographer captures sense of unity and devotionAs East Africa’s oceans change, coastal women build new livelihoodsObamacare rolls shrank dramatically in many states over the past year, new federal data showsWhat to know about Legionnaires' disease making people sick on New York's Upper East SideYouTube defends video that falsely claims Sydney massacre survivor is 'crisis actor'A hot dog Reuben is the deli classic you didn't expect to make in an air fryerAs Pope Leo faces traditionalists' schism, a Minnesota church merges old customs with fidelityTrump toca campana de apertura de Wall Street, trata de vincular su presidencia a alzas bursátilesU.
S. NewsThe private prison company CoreCivic has sold two of the largest immigration detention facilities in California to the U.S. Department of Homeland Security in a deal worth $1.5 billion, the company announced Monday. CoreCivic said it anticipates that the sale of the Otay Mesa Detention Center in San Diego County and the California City Detention Facility in Kern County will bring the company an estimated net proceeds of approximately $1.1 billion.
, with the federal government paying $739.2 million for the 1,994-bed Otay Mesa facility and $732.6 million for the newly-opened 2,560-bed California City facility.that it expects to continue running the day-to-day operations of both facilities under existing management contracts with the U.S. Immigration and Customs Enforcement. The company acknowledged in its filing that the terms of those contracts could be renegotiated now that the federal government owns both properties outright. They also might not be renewed.
CoreCivic’s contract in California City contract runs through August 2027, and its Otay Mesa contract is in effect through December 2029, with an option to extend for five more years.. The 2025 federal budget gave the department roughly $170 billion for immigration enforcement and detention, including $45 billion specifically earmarked for expanding detention capacity through fiscal year 2029.
The acquisition of the two sites is another step in the federal government’s plan to build out national immigration detention capacity that isn’t reliant on the two largest private prison contractors, according toin U.S. Immigration and Customs Enforcement documents released by the city of Social Circle, Georgia, where city leadership was worried about“This new model will allow ICE to create an efficient detention network by reducing the total number of contracted detention facilities in use while increasing total bed capacity, enhancing custody management, and streamlining removal operations,” according to the unsigned ICE memo.in at least five states, who only learned of the purchases and their purpose after the deals closed.
Some of those projects have run into legal challenges, according to the New York Times, though the agency appears to be moving forward with four warehouse acquisitions. The Otay Mesa facility has been at the center of an ongoing legal fight over local health inspections. San Diego County officials sued the federal government and CoreCivic in March after claiming health inspectors were blocked from a full inspection under a 2024 state law.
A federal judge later granted county health officials Private prison companies CoreCivic and GEO Group have fought back against California’s 2024 county-inspection law in court, arguing that states can’t pass laws that directly burden the federal government’s core functions. GEO Group has argued the state law is unconstitutional because it steps on federal authority over immigration detention centers.
California City opened last year in eastern Kern County about 100 miles north of Los Angeles in a site the company previously operated as a state prison. A federal lawsuit is ongoing about whether the facility opened without proper permits in remote California City. Grisel Ruiz, a staff attorney from the Immigrant Legal Resource Center, said the change in ownership does not change her organization’s opinion that the facility opened without the required permits.
The organization intends to ask California City’s planning commission on Tuesday to deny the permits and shut down the facility. Attorney General Rob Bonta has “The sale to DHS doesn’t change the fact that CoreCivic must still lawfully operate the facility,” said Ruiz. Ruiz also noted the sale deal appeared favorable for CoreCivic in that they get the profits from the sale of the property, as well as revenue from continuing to operate the facilities for Immigration and Customs Enforcement.
CoreCivic said the sale prices were set through a federal government process in which independent appraisers account for replacement cost, depreciation and land value to determine fair market value. Spokesman Ryan Gustin said the appraisals were reviewed by the government for compliance with federal standards.
The company also disclosed that it is having ongoing talks with ICE about selling the federal government additional detention facilities, though it said those discussions are in the early stages of a deal and may not close. Tennessee-based CoreCivic said the proceeds from the sale, which would be about $1.1 billion after taxes and transaction costs, could go toward paying down its bank credit and retiring $238.5 million in senior notes coming due in 2027.
Any remaining funds are earmarked for further debt reduction or possibly stock buybacks. Patrick Swindle, the president of CoreCivic, said in the news release, “We are pleased with the sales of these two mission-critical facilities for the Company’s government partner, while reflecting our role as a long-term, flexible solutions provider to government. ” ___
Please follow us on Google to support usPrisons General News California Immigration U.S. Department Of Homeland Security Minnesota-ICE Crackdown TN State Wire Tennessee The GEO Group Inc. U.S. Immigration And Customs Enforcement Rob Bonta Donald Trump Business Corecivic Inc. U.S. News Ryan Gustin Joe Biden Patrick Swindle U.S. Securities And Exchange Commission U.S. News
United States Latest News, United States Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
CoreCivic sells Otay Mesa Detention Center to Federal government in $1.5 billion dealCoreCivic has sold its Otay Mesa Detention Center to the federal government, but expects to continue managing the facility.
Read more »
Private prison company sells two of California’s immigrant detention centers to the fedsPrivate prison company CoreCivic will continue operating two large ICE detention centers in California after selling the properties to the Department of Homeland Security.
Read more »
CoreCivic sells Otay Mesa Detention Center for billion-dollar dealTwo California detention facilities, including Otay Mesa, have been sold to the federal government for $1.5 billion.
Read more »
Private immigrant detention center in Otay Mesa sold to DHS as part of $1.5 billion dealThe Otay Mesa Detention Center will continue to be operated by CoreCivic, the company said.
Read more »