Private prison company sells two of California’s immigrant detention centers to the feds
Summary
The private prison company CoreCivic sold two large immigrant detention centers in California to the U.S. Department of Homeland Security for $1.5 billion. The government now owns the facilities but CoreCivic will likely keep managing them under current contracts, which may be renegotiated.Key Facts
- CoreCivic sold Otay Mesa Detention Center and California City Detention Facility to the federal government.
- The total sale price was $1.5 billion, with about $1.1 billion expected as net proceeds to CoreCivic.
- Otay Mesa has 1,994 beds; California City has 2,560 beds.
- The sales closed on July 2, and DHS paid $739.2 million for Otay Mesa and $732.6 million for California City.
- CoreCivic will likely continue running both centers under contracts with U.S. Immigration and Customs Enforcement (ICE).
- Contracts run through 2027 (California City) and 2029 (Otay Mesa), with options to extend.
- The federal government has increased its budget to expand immigration detention capacity, aiming to own more facilities directly.
- Some local officials were surprised by the sales and acquisitions, which have faced legal challenges in other states.
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