Geo Group Positions for ICE Contract After Hobbs Land Transfer

A recent land transfer has put the private prison company Geo Group in a strong position to pursue a federal immigration detention contract in Hobbs, New Mexico. The transfer, finalized on Monday, involved the acquisition of the land beneath the former state prison, known as the Lea County Correctional Facility, allowing Geo Group to seek direct contracts with the U.S. Immigration and Customs Enforcement (ICE). This move comes just ahead of the implementation of the Immigrant Safety Act on May 20, 2024, which prohibits local governments from leasing land for detention purposes.

The land swap, which closed this week, was part of an ongoing effort to clarify property ownership among the city, county, and Geo Group. Hobbs Assistant City Manager Todd Randall confirmed that the company now owns both the land and facilities, enabling it to bypass certain restrictions set by the new state law. Randall emphasized that the negotiations were initiated well before the legislative session and were aimed at resolving property disputes, not circumventing legal restrictions.

Critics are raising concerns about the implications of this land transfer. Becca Sheff, a senior attorney with the American Civil Liberties Union of New Mexico, expressed alarm over the timing of the deal, suggesting it could be a precursor to establishing an ICE facility. She pointed out that the land swap aligns closely with the effective date of the Immigrant Safety Act, which aims to dismantle the state’s role in immigrant detention for community safety and trust reasons.

The new law will require local governments with existing ICE contracts to terminate these agreements as soon as possible. Sheff stated, “We are deeply alarmed at steps being taken to go ahead with a land swap… because transactions of that sort are going to be directly prohibited by the bill.” She highlighted concerns about the treatment of detainees, citing reports of individuals being transported to New Mexico without adequate legal representation or medical care.

In a recent public shareholders’ meeting, Geo Group indicated its intent to secure ICE contracts for its six vacant facilities, including the Lea County property. During a February earnings call, CEO George Zoley described these idle facilities as “well-suited for ICE needs,” expressing hopes for their activation to meet federal demands.

The Lea County Correctional Facility, which spans over 400,000 square feet and has a capacity of 1,200 beds, was previously operational as a state prison. However, the New Mexico Corrections Department announced in May that Geo Group would not renew its state contract, leading to the facility’s closure and the transfer of roughly 1,000 state inmates to other locations.

The Immigrant Safety Act, which passed under House Bill 9, was framed as a means to extract the state from the immigrant detention business. While ICE has not provided specific details regarding the Lea County facility, a spokesperson indicated there are currently no new detention centers planned in New Mexico. The federal agency is, however, actively seeking to expand its overall detention capacity, emphasizing that new facilities will meet stringent standards.

Local private prison operators are also evaluating their options in light of the new law. The CoreCivic company manages facilities in Cibola, Torrance, and Otero counties, but it remains unclear whether they will pursue direct contracts with ICE or continue to operate under agreements with local governments. The Management & Training Corp., which operates the Otero County Processing Center, faces potential closure due to the new legislation.

The Hobbs land swap was intended to resolve ownership issues that emerged following the closure of the Lea County facility last summer. Geo Group initially constructed the prison in 1998 on land leased from Lea County, with a lease set to expire in 2096. A clause in the original property agreement indicated that ownership would revert to the city if the land ceased to be used for prison purposes.

The Hobbs City Commission approved the swap in January, with the city receiving an adjacent land parcel and $125,000 from Geo Group, aimed at fostering future economic development. According to Randall, the transaction was designed to eliminate any outstanding issues regarding facility ownership.

County officials have expressed hope that whatever future use Geo Group plans for the property will create employment opportunities. Corey Needham, Lea County Manager, stated, “I hope whatever Geo Group does with the property provides employment,” while emphasizing that the county holds no specific preference regarding its future use.

As the situation unfolds, the implications of the land transfer and how private companies choose to navigate the new legal landscape in New Mexico will be closely monitored. With the state law set to take effect, the focus will remain on how these developments impact both local communities and the broader framework of immigration enforcement in the region.