KANSAS CITY, Mo. — CoreCivic, a private prison company operating several facilities throughout the United States, announced Monday that it has been awarded two new contracts with Immigration and Customs Enforcement (ICE) to utilize beds in California City, California, and Leavenworth, Kansas.
The legal battle surrounding the Leavenworth facility comes after months of the city fighting to get CoreCivic to reapply for a special use permit, something the company did initially before withdrawing its application, stating it didn’t need one.
"We continue to pursue all avenues to find a successful conclusion to this matter and appreciate the Department of Justice's support," a CoreCivic spokesperson told KSHB 41. "We maintain the position that our facility, which we've operated for almost 30 years, does not require a Special Use Permit to care for detainees in partnership with ICE. CoreCivic respects the judicial process and looks forward to the next steps in presenting our position to the courts."
CoreCivic has since renamed its Leavenworth facility, the former Leavenworth Detention Center, to the Midwest Regional Reception Center.
The company entered a six-month letter contract with ICE on March 7 to begin “activation efforts” at the facility while it “worked to negotiate and execute a longer-term contract.”
According to a Sept. 29 release from the company, it has since been successful in hiring staff and preparing the facility to accept detainees during this term.
However, it cites “legal challenges” as delaying the intake process.
The new contract commenced Sept. 7 and is for a 24-month term.
It allows for a fixed monthly payment and an incremental per diem payment based on detainee populations.
Both of these are contingent upon the temporary injunction currently prohibiting the intake of detainees, which can no longer be enforced.
The company expects the total annual revenue once the facility is fully activated to be approximately $60 million.
CoreCivic said in the release it cannot "predict if or when the legal challenges will be successfully resolved.”
"We are pleased to announce the finalization of contracts for these two facilities, both of which were idle at the beginning of the year,” CoreCivic CEO Damon T. Hininger said in the release. “The geographic locations of each of these facilities will enhance our ability to support our government partner in its effort to enforce immigration laws in areas of need across the United States. Looking forward, we anticipate additional contracting activity that will help satisfy ICE's growing needs."
Patrick D. Swindle, CoreCivic’s president and chief operating officer, was also quoted in the release, stating the two facilities, only fully activated, are expected to generate nearly $200 million in annual revenue.
"While the intake process has been delayed at the Midwest Regional Reception Center, we will offer newly hired employees opportunities to be redeployed at our other activations until the legal challenges are resolved," Swindle said. "Our team continues to work hard on activating our idle facilities, which helps lay the foundation for continued earnings growth into 2026 and beyond."
The latest federal case between the city and CoreCivic is set to resume in a hearing on Nov. 25.
When KSHB 41 reached out to the city of Leavenworth for comment, a spokesperson said the city did not have anything to add.
"It doesn't change any of the current conditions of the case, as far as the City is concerned," the spokesperson said.
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