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Leavenworth prison sale to ICE raises questions about city oversight and tax impact

CoreCivic announced it has sold its Leavenworth prison to the federal government, with ICE buying the Midwest Regional Reception Center and the Prairie Correctional Facility. CoreCivic said it will continue operating both facilities.

People at a city committee table discuss oversight and financial impact while a distant detention facility sits under a clear sky.

The sale follows months of local negotiations and legal efforts tied to how the Leavenworth facility would be run. In March, Leavenworth City Commissioner Holly Pittman agreed to a special use permit that included staffing ratio requirements and city oversight through a community committee, largely because she feared the sale would shift control and affect oversight.

City leaders also raised concerns about finances. Pittman said federal buildings typically do not pay property taxes, meaning the county could lose tax dollars, and she noted that future community impact payments may now be jeopardized. As part of negotiations, CoreCivic agreed to annual impact payments, including an initial $1.5 million payment and a continuing $250,000 annual impact payment plus a $150,000 annual impact fee to the police department. City manager Scott Peterson confirmed the city is coordinating with its legal team.

Local advocates also responded. The Sisters of Charity of Leavenworth’s Office of Justice, Peace and Integrity of Creation urged full transparency, including clear public disclosure of terms, oversight, and intended use. The Iola Register reports on the announcement from CoreCivic and reactions from Leavenworth officials and community stakeholders.