ICE Opens 1,600-Bed Detention Center in Rural Minnesota After $496 Million Federal Purchase

Immigration and Customs Enforcement has a new place to hold people awaiting deportation in the Upper Midwest. The Department of Homeland Security opened the Appleton Detention Facility in western Minnesota on Nov. 9, and it began housing ICE detainees this week, The Center Square reported ^[1]. The 1,600-bed former Prairie Correctional Facility sits in a town of about 1,400 people roughly 20 miles from the South Dakota border and had stood idle since 2010 ^[1][3].

DHS says the site lets agents move quickly. "The site gives ICE immediate capacity to detain and remove," a department spokesperson told The Center Square, adding that it spares the agency years of waiting for new construction ^[1]. In a statement reported by KSTP, DHS said the center will help "carry out the American people's mandate for mass deportations" and that ICE will be making arrests in states across the country ^[2].

For Minnesotans, the opening carries extra weight. The Twin Cities saw widespread protests earlier this year during the federal "Metro Surge" immigration operation, The Center Square noted ^[1].

A $495.6 Million Purchase

DHS bought the prison in August from its owner, private prison operator CoreCivic, for $495.6 million, KSTP reported ^[2]. CoreCivic bought the property in 1997 for $74 million and will continue to run it for the government, according to MPR News ^[4]. The company expects about $75 million a year in revenue under a five-year contract, FOX 9 reported ^[3]. The facility is expected to be fully operational by mid-2027 ^[1], with the remaining detainees expected by the second quarter of that year ^[2].

The price has drawn fire. Records obtained by KARE 11 show CoreCivic offered to sell the prison to Minnesota for $75 million in 2025, and the state Department of Corrections declined, according to The Center Square ^[1]. Swift County assessed the property's market value at $14.75 million for 2026, Bring Me The News reported ^[5].

CoreCivic rejects the comparison. The company told The Center Square that the sale price reflected fair market value under federal appraisals using a cost-based method, and that the two figures measure different things at different points in a valuation process ^[1]. It told FOX 9 that the earlier number was preliminary and not a purchase offer, adding, "The earlier figure was never an appraisal or a replacement cost." ^[3] CoreCivic has also said the federal government itself set the price through its assessment process ^[5].

Jobs, Taxes and a Divided Town

For Appleton, the reopening is a mixed blessing. The prison's 2010 closure cost about 400 jobs and left empty storefronts downtown, City Council Member James Massee told MPR News ^[4]. The new facility is expected to create more than 500 jobs ^[1]. Kevin Plemmons, the only candidate on the November mayoral ballot, told MPR that the community and new revenue come first, saying "anything will help us right now." ^[4]

The catch is taxes. Because the federal government now owns the property, it is expected to come off the local tax rolls, and Massee estimated the city could lose about 30% of its tax base, MPR reported ^[4]. Some residents have also raised concerns about ICE's presence ^[1], and anti-ICE protesters and counter-protesters have rallied in town without violence ^[4].

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Democrats Object

Minnesota Democrats have lined up against the deal. Attorney General Keith Ellison called the payment a $420 million overpayment, accused the president of paying a donor far above the prison's value and asked congressional homeland security and oversight committees to investigate, Bring Me The News reported ^[5]. Sen. Tina Smith also questioned the price ^[5]. The outlet reported that CoreCivic gave $500,000 to Trump's 2025 inaugural committee and lobbied for the One Big Beautiful Bill Act, the law that enabled DHS to buy detention centers ^[5].

Gov. Tim Walz said he opposes private prisons on principle and that the state has no role in the arrangement, while conceding that "the federal government is going to do what the federal government does," WCCO reported ^[6]. State Corrections Commissioner Paul Schnell has said the approach is not the proper way to handle detention ^[6].

The Appleton purchase is part of a broader federal buying effort. A month before the deal, DHS paid $739 million for the Otay Mesa detention center in San Diego, according to Bring Me The News ^[5]. Detainees will arrive in phases through mid-2027 ^[2], and it is not yet clear whether Congress will take up Ellison's call for an investigation. For the people of Appleton, the immediate questions are whether the promised jobs arrive and whether the federal government will help make up for the lost tax base.