CoreCivic offers Appleton $1.2 million per year to make up for lost tax revenue
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CoreCivic, the company operating a 1,600-bed facility that will begin housing Immigration and Customs Enforcement detainees this fall, is offering to pay the city of Appleton just over $1.2 million a year.
That's according to a proposal discussed earlier this week, during a special meeting of the Appleton City Council.
The agreement addresses concerns raised by the sale of the facility, which will result in a significant loss of property tax revenues from the city's rolls. The Department of Homeland Security bought the facility, which had been dormant for more than a decade, for nearly $500 million in August.
City officials say they expect to lose about 30 percent of the city’s tax base starting in 2028.
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The proposed Memorandum of Understanding, or MOU, includes a provision that states the agreement is non-binding.
“This MOU reflects the Parties’ present, good-faith intentions and does not constitute a legally binding or enforceable contract, and creates no legally enforceable rights, duties, or obligations on the part of any Party,” a section of the document read.
CoreCivic officials said the company strives to be a “good partner” with local communities.
Area residents have expressed mixed reactions to the announced reopening of the facility as an ICE detention center. Some welcome the potential economic boost from the hiring of hundreds of staff needed to run the facility. Others say despite the financial benefits, they are opposed to housing detained immigrants there.
The city council’s next meeting is scheduled for Sept. 9.
