CoreCivic to continue operating both facilities under ICE contracts
The sale closed on July 2, according to a filing CoreCivic submitted to the U.S. Securities and Exchange Commission. The company said it anticipates that the transaction will bring it estimated net proceeds of approximately $1.1 billion.
CoreCivic said in a news release that it expects to continue running day-to-day operations at both facilities under existing management contracts with ICE. The company acknowledged in its SEC filing that the terms of those contracts could be renegotiated now that the federal government owns both properties.
The Otay Mesa Detention Center, located in San Diego County, has a capacity of 1,994 beds. The California City Detention Facility, in Kern County, is a newly opened facility with a capacity of 2,560 beds. Together, the two facilities represent some of the largest immigration detention centers in California.
The transaction gives the Department of Homeland Security direct ownership of two major detention properties in the state.