Minnesota passed on a prison offered for $75 million. The federal government bought it for $495 million, according to Senator Maggie Hassan's account. An extraordinary demonstration of the government's ability to make itself the highest bidder without assistance.
Hassan has opened an investigation into the Prairie Correctional Facility purchase and requested records. CoreCivic, the seller, says the federal government determined the price through its assessment process. So at least the government didn't let a private company do all the work of deciding how much the government should spend.
The $420 million gap does not prove corruption. Appraisals and deal terms matter. Those are among the records Hassan wants preserved, an encouraging sign that the purchase may eventually be accompanied by the explanation.
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According to Hassan's office, DHS also awarded CoreCivic a contract to operate the facility after buying it. Ownership and operation are different services. Still, it is an enviable sale: the company gets paid to hand over the prison and then gets paid to keep running it. The customer purchases the building; the seller retains a reason to send invoices.
CoreCivic sold four detention facilities to the government for a total $2.21 billion, Reuters reports. Its CEO urged ICE to move quickly on further purchases. At these prices, slowing down might permit comparison shopping.
The company runs detention centers, but its own capital has found a very attractive path to freedom.
Sell the building. Keep the business.


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