Minnesota ICE detention facility opens after $496M federal purchase

The privately owned, 1,600-bed prison had sat vacant for 16 years before it was offered to the state of Minnesota for $75 million in 2025, according to documents obtained by local media.

The Minnesota Department of Corrections declined the offer, and federal taxpayers paid $420 million more for the property just a year later. Appleton Detention Facility, formerly known as the Prairie Correctional Facility, began housing ICE detainees this week and is expected to be fully operational by mid-2027.

The Department of Homeland Security did not respond to The Center Square’s request for comment on the price difference, instead defending the purchase by pointing to the facility’s planned role in immigration enforcement.

“DHS opened the Appleton Detention Facility on November 9 to strengthen America’s ability to enforce its immigration laws and carry out the American people’s mandate for mass deportations,” a DHS spokesperson told The Center Square in a statement on Wednesday. “The site gives ICE immediate capacity to detain and remove those who have no legal right to remain, protecting American communities and restoring the integrity of our borders without waiting years for new construction.”

CoreCivic, one of the nation’s largest private prison operators,said in a press release that the purchase price was a “fair market value.”

“The federal government's purchase price for the Prairie Correctional Facility (Appleton Detention Facility) should be understood in the context of the appraisal process that governs federal real property acquisitions, which is designed to determine objective fair market value,” CoreCivic said.

It added that the property’s purchase price was based on independent appraisals conducted by federal government-hired appraisers, who used a cost-based methodology that accounted for replacement costs, depreciation, land value and other market factors. The appraisal, which also accounted for significant facility renovations, was then reviewed by the government for compliance with federal standards.

CoreCivic also directly addressed the discrepancies between the $75 million and $495.6 million numbers, stating they measured “two different things at vastly different points in a valuation process.”

Located about three hours west of the Twin Cities, Appleton Detention Facility sits in a town of roughly 1,400 residents. The Twin Cities saw widespread protests earlier this year during the federal immigration operation known as Metro Surge.

The facility is expected to create more than 500 jobs, though some local residents have raised concerns about ICE's presence and the loss of property tax revenue for both the county and city, as federal properties are exempt from local property taxes.

DHS said this new facility will be a helpful resource in its immigration operations.

“Every day, DHS is conducting law enforcement activities across the country to keep Americans safe,” its spokesperson told The Center Square. “It should not come as news that ICE will be making arrests in states across the U.S. and ensuring we have resources to carry out President Trump’s mission.”