politics
CoreCivic Sells Two California ICE Detention Centers to Federal Government for $1.47 Billion
CoreCivic sold the Otay Mesa and California City detention centers to the Department of Homeland Security on July 2. The company will continue operating both facilities under existing ICE contracts through at least 2027 and 2029.
Jul 7, 6:35 PM·1m read2 sources
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The transaction closed on July 2, with the federal government paying $739.2 million for Otay Mesa and $732.6 million for California City. CoreCivic stated it expects net proceeds of approximately $1.1 billion from the sale.
CoreCivic noted that contract terms may be renegotiated now that the federal government owns the properties.
California law permits state and local officials to inspect immigration detention centers. CoreCivic and GEO Group have challenged the 2024 county-level inspection law in court, arguing that states cannot enact measures that directly interfere with federal functions. A federal lawsuit is pending over whether the facility opened without required permits.
