Private Prison Firm Eyes ICE Contract Following Land Transfer

A significant land transfer has positioned the private prison company Geo Group to potentially pursue a federal immigration detention contract in Hobbs, New Mexico. This week, the company finalized the acquisition of the land beneath the Lea County Correctional Facility, a former state prison, after a land swap agreement with the city of Hobbs. The transaction, which closed on Monday, allows Geo Group to own both the land and the existing facilities, as confirmed by Hobbs Assistant City Manager Todd Randall in an email.

Owning the land enables Geo Group to seek direct contracts with the U.S. Immigration and Customs Enforcement (ICE), thus circumventing a recently enacted state law that prohibits local governments from leasing land to private companies for detention purposes. The new law, known as House Bill 9, will take effect on May 20, 2024, and is designed to end public contracts for immigration enforcement in New Mexico.

Despite the law, the future of federal immigrant detention in the state appears to rely heavily on private companies like Geo Group. Randall emphasized that the land swap was initiated prior to the legislative session and aimed to address existing property ownership issues, stating, “This was a real estate matter that had already been in progress and was not intended to address or work around the new state law regarding detention operations.”

Concerns have been raised regarding the implications of this land acquisition. Becca Sheff, a senior attorney with the American Civil Liberties Union of New Mexico, expressed alarm at the timing of the land swap, suggesting it could facilitate the establishment of an ICE facility. She highlighted the risks of detaining individuals without adequate access to legal representation or medical care.

In a recent public shareholders’ meeting, Geo Group expressed its intention to secure ICE contracts for its six vacant facilities, including the Lea County property, which boasts a capacity of 1,200 beds. CEO George Zoley noted that the company is engaged in discussions with ICE about utilizing these “idle facilities” to meet the agency’s needs.

The Lea County Correctional Facility, which spans over 400,000 square feet, was previously operated as a state prison until the New Mexico Corrections Department announced in May that Geo Group would not renew its state contract. Following this announcement, approximately 1,000 state inmates were relocated to other facilities.

While ICE has not confirmed any plans for new detention centers in New Mexico, a spokesperson indicated that the agency is actively seeking to expand its detention capacity nationwide. The agency aims to ensure that future facilities meet its strict operational standards, stating, “They will be very well-structured detention facilities meeting our regular detention standards.”

Local officials are uncertain about the future of existing ICE facilities in New Mexico. Currently, there are three such facilities operated by private companies in Cibola, Torrance, and Otero counties. The county-owned Otero County Processing Center, operated by Management & Training Corp., is likely to be affected by the new law. Otero County’s manager has indicated that the facility may close due to the legislative changes.

As the situation continues to evolve, local officials and community advocates remain vigilant. Hobbs officials have stated that the land acquisition will allow for future economic development, with Hobbs receiving a land parcel and $125,000 from Geo Group as part of the agreement. County leaders hope that any future use of the facility will provide employment opportunities for local residents.

The impacts of the new law and the actions of private prison companies in New Mexico will be closely monitored as ICE continues its efforts to expand its detention operations across the United States.