CoreCivic Receives Lease Termination Notice for the California City Correctional Center from the State of California
December 06 2022 - 7:39PM
CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the
Company) announced today it received notice from the California
Department of Corrections and Rehabilitation (CDCR) of its intent
to terminate the lease agreement for the company-owned, 2,560-bed
California City Correctional Center (CCCC) by March 31, 2024, due
to the state's declining inmate population.
The lease agreement is fully funded through the
current fiscal year ending June 30, 2023. Funding for the lease of
the CCCC for the 2024 fiscal year, beginning July 1, 2023, will be
determined in the California legislature in the first half of 2023
as part of the annual budget process. As part of this process the
Company plans to engage with the state of California regarding the
continued utilization of the CCCC by the CDCR due to its modern
infrastructure, efficient design, and comprehensive maintenance
program.
Since the lease of the CCCC commenced in 2013, the
Company has continually invested in facility enhancements to ensure
the CCCC is operating at its optimum performance to the benefit of
the facility's residents, the correctional professionals employed
at the CCCC and CDCR. In order to support the Company's
environmental sustainability commitments, the Company recently
procured a 100% renewable electricity supply for the facility. The
Company believes these factors, along with the advanced age of many
of the state of California's other correctional facilities, support
the continued lease of the CCCC by the CDCR.
Rental revenue generated from the CDCR at the CCCC
for year ended December 31, 2021, and nine months ended September
30, 2022, was $33.3 million and $25.7 million, respectively, and is
reported in the CoreCivic Properties business segment. CoreCivic is
very proud of its opportunity over the past nine years to help the
state of California successfully manage through its historic
challenges with prison overcrowding. The Company believes its
relationship with the state of California has demonstrated the
value and flexibility it provides to governments across its full
range of solutions, including through innovative lease agreements
like the one at CCCC.
About CoreCivic
CoreCivic is a diversified, government-solutions company with
the scale and experience needed to solve tough government
challenges in flexible, cost-effective ways. CoreCivic provides a
broad range of solutions to government partners that serve the
public good through high-quality corrections and detention
management, a network of residential and non-residential
alternatives to incarceration to help address America’s recidivism
crisis, and government real estate solutions. CoreCivic is the
nation’s largest owner of partnership correctional, detention and
residential reentry facilities, and believes it is the largest
private owner of real estate used by government agencies in the
United States. CoreCivic has been a flexible and dependable partner
for government for nearly 40 years. CoreCivic's employees are
driven by a deep sense of service, high standards of
professionalism and a responsibility to help government better the
public good. Learn more at www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to CoreCivic's beliefs
and expectations of the outcome of future events that are
"forward-looking" statements within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995, as amended. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These include, but are not limited to, the risks
and uncertainties associated with the timing of the lease
termination, which could potentially occur prior to March 31, 2024,
and the Company's intention to engage with the state of California
regarding the continued utilization of the CCCC by the CDCR.
CoreCivic takes no responsibility for updating the information
contained in this press release following the date hereof to
reflect events or circumstances occurring after the date hereof or
the occurrence of unanticipated events or for any changes or
modifications made to this press release or the information
contained herein by any third-parties, including, but not limited
to, any wire or internet services.
Contact: |
Investors: Cameron Hopewell -
Managing Director, Investor Relations - (615) 263-3024Financial
Media: David Gutierrez, Dresner Corporate Services - (312)
780-7204 |
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