Target Hospitality Corp. announced it has entered into a five-year lease and services agreement with CoreCivic, Inc. to resume operations at its existing assets located in Dilley, Texas. This new agreement, referred to as the Dilley Contract, reactivates the Dilley Facility, which previously operated from September 2014 to August 2024.
The Dilley Facility will retain a similar size and operational scope, capable of supporting up to 2,400 individuals, and will provide facility and hospitality solutions to CoreCivic. The Dilley Contract is expected to generate over $246 million in revenue over its anticipated five-year term, extending to March 2030. Target anticipates approximately $30 million of this revenue will be realized in 2025.
A key benefit of this reactivation is that it requires no capital investment, allowing for a seamless transition back into operation. The Dilley Contract is supported by an amended intergovernmental services agreement between the city of Dilley, Texas, and U.S. Immigration and Customs Enforcement, though it remains subject to annual government appropriations and a 60-day termination for convenience clause.
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