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CoreCivic Offers $1M in Compensation to City of Appleton, Minnesota

CoreCivic’s proposal would offset lost property taxes and fund city services as Appleton negotiates a longer termination notice period.

  • On Monday, City Administrator John Olinger presented a draft memorandum where CoreCivic offers Appleton an initial $1.5 million lump sum and $1.26 million annually to compensate for lost property taxes following the prison's sale to the federal government.
  • CoreCivic sold the long-vacant Prairie Correctional Facility to the U.S. Department of Homeland Security for $495.6 million in August, exempting the property from local tax levies that previously provided Appleton with $521,293.30 in annual revenue.
  • Although the current proposal allows termination upon 30 days' notice, Olinger is seeking to modify the clause to require six months' notice to protect city investments in public safety personnel and equipment.
  • Council member Allan Oyen stated, "We are kind of at their mercy," during Monday's meeting as the City Council approved the memorandum pending finalization of the termination clause.
  • The Appleton Detention Facility is expected to be operational by spring 2027 under a contract with U.S. Immigration and Customs Enforcement, with the city facing a preliminary budget deadline for 2027 on September 30.
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Duluth News TribuneDuluth News Tribune
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CoreCivic offers $1M in compensation to City of Appleton, Minnesota

At a special meeting Monday, the mayor and city councilors discussed terms outlined in a memorandum of understanding. The funds would support city services to the reopened prison.

·Cherokee County, United States
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Star Tribune broke the news in Minneapolis, United States on Tuesday, September 1, 2026.
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