CoreCivic’s Non-Binding Promises Leave Minnesota City Exposed
by Jo Ellen Knott
The sale of Minnesota’s shuttered Prairie Correctional Facility to the federal government has left the small city of Appleton (1,300 residents) facing tax revenue loss, infrastructure strain, and unenforceable corporate promises from private prison giant CoreCivic.
After CoreCivic sold the 1,600-bed facility to the U.S. Department of Homeland Security in August 2026 for $496 million and securing a lucrative $536 million, five-year federal contract to operate it as an ICE immigrant detention center, the property became federally owned and tax-exempt. Consequently, Appleton, Swift County and the local school district lost all future property tax revenue, which previously totaled $800,000 annually from the vacant lockup alone.
To placate local officials, CoreCivic proposed a draft memorandum of understanding offering $1.5 million in 2026 and $1.2 million annually thereafter. However, the proposed agreement offers zero legal protection for the municipality. The draft explicitly states that it “does not constitute a legally binding or enforceable contract” and creates “no legally enforceable rights, duties, or obligations.” CoreCivic can walk away without liability, leaving Appleton entirely uncompensated.
Meanwhile, the 1,600-bed facility threatens to severely strain Appleton’s emergency medical services, ambulance capacity and municipal water and sewer infrastructure. On top of these local burdens, state authorities have no regulatory or inspection oversight over the federally-owned site. While CoreCivic projects an enormous $75 million annual profit from operating the facility, Appleton residents are left shouldering heavy municipal costs, degraded public infrastructure and oversight failures under a non-binding corporate agreement.
Source: Minnesota Reformer
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