CoreCivic sells Otay Mesa Detention Center in $1.5 billion deal with the government
Key Points:
- CoreCivic sold the Otay Mesa Detention Center and California City Detention Facility to the federal government for $1.5 billion but will continue managing both under existing ICE contracts.
- The sale highlights CoreCivic's valuable real estate portfolio and its role as a long-term partner to government agencies, according to CEO Patrick Swindle.
- Otay Mesa Detention Center has faced criticism for overcrowding and poor conditions, including limited medical care and inadequate basic necessities, as noted in a California DOJ report.
- San Diego County sued the federal government and CoreCivic after officials were blocked from inspecting the facility amid detainee complaints of freezing temperatures, untreated medical issues, and substandard food.
- A federal judge recently ordered the Otay Mesa facility to allow a health inspection by county leaders following the lawsuit and advocacy by local lawmakers.