The Donald W. Wyatt Detention Facility, a 770-bed quasi-private detention center in Central Falls, Rhode Island, recently made a $250,000 payment to the city, marking the first time it has done so since 2021. This payment, confirmed by Central Falls City Solicitor Matt Jerzyk, appears to be the largest impact fee received by the city from the facility since 2008, when the city collected $550,000. Overall, the facility has paid Central Falls $5.3 million in impact payments over its first 15 years of operation. The reasons for the $250,000 payment were not immediately clear, and city officials are unable to comment due to ongoing litigation involving the city, the Wyatt facility, and bondholders represented by UMB Bank.
The Wyatt facility has faced significant financial challenges, particularly after its governing board voted to cancel its contract with ICE in 2019, leading to a lawsuit from UMB Bank for $130 million. This debt originated from a $106.4 million bond issued in 2005 for facility expansion. A federal judge subsequently ordered ICE detainees to remain, allowing the prison to meet its financial obligations. The facility also struggled during the COVID-19 pandemic, with its detainee population plummeting and weekly losses of $25,000. Accounts payable rose from $500,000 to $2.3 million by December 2020, bringing the facility close to closure. In 2014, the Wyatt briefly entered court-ordered receivership, and ICE returned as a client in 2019.
Despite past difficulties and ongoing litigation, the facility is now working towards financial stability. Its detainee population has rebounded, with 639 detainees as of a recent update, including 57 held by ICE, many of whom are asylum seekers. The U.S. Marshals Service, the facility's primary client, has increased its daily per-detainee rate from $119.18 to $180, which will help cover capital improvements and opioid use disorder treatment. Wyatt board chairman James J. Lombardi III stated that an agreement with major bondholder Invesco to refinance bonds and establish a payment plan is crucial for long-term stability. The board is seeking Invesco's approval to begin making monthly payments of $25,000 to Central Falls, aiming to be a "good corporate citizen."
