The Department of Homeland Security has purchased the more than 1,000-bed Midwest Regional Reception Center from CoreCivic for $238.4 million in a sale announced today.
CoreCivic said it expects to continue operating the facility for Immigration and Customs Enforcement under its existing contract.
DHS’ purchase of the Leavenworth CoreCivic detention center has changed who owns the facility, and local officials are watching to see whether the city’s oversight protections will remain in place.
The purchase comes after a yearslong dispute between CoreCivic and the city of Leavenworth over reopening the detention center. The city required CoreCivic to obtain a special use permit before the facility resumed operations. That permit included requirements for staffing, public safety, local access and the creation of an oversight board.
The facility’s contract with the Department of Justice had initially expired in 2021. Reopening the facility as a for-profit immigration detention center caused an outcry from some locals who pointed to the spotty safety history of the company which led some advocates to oppose the plan.
Local oversight concerns
Former Leavenworth Mayor and current City Commissioner Holly Pittman said she’s worried throughout the process that the federal government could eventually purchase the facility.
"One of my biggest fears when we were going through this process is that this federal purchase could happen," Pittman said. "That's why I believed it was important at the time to secure as many local protections as possible while we had the opportunity."
Pittman said the change in ownership could affect the city’s ability to enforce those protections.
"My concern all along was this was going to happen, and then we would have no oversight," Pittman said.
Justin Young, a member of Leavenworth's oversight board, said the facility has not been fully federalized based on the information currently available.
Young said the sale transferred ownership of the building and land to the Department of Homeland Security, but CoreCivic is still expected to handle daily operations.
He said a federalized facility would mean the federal government directly manages operations and employs the staff.
For now the oversight board and special use permit currently remain in place, but Young and Pittman are cautiously watching for what happens next.
DHS and CoreCivic statements on the sale
DHS said in a statement that, “ICE has new funding to expand detention space to keep these criminals off American streets before they are removed for good from our communities.”
CoreCivic Public Affairs Senior Director Ryan Gustin said the sale was part of a larger transaction involving the company’s Leavenworth facility and another detention center in Minnesota. He said in a statement that sales of this type are normal.
"Asset transactions of this nature are not uncommon for government," Gustin said.
Gustin said the sale process involved federal appraisals designed to determine the fair market value of the facilities.
"The process was marked with rigor and integrity," Gustin said. "The facility valuations were established through the federal government's required appraisal process."
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