SAN ANTONIO — U.S. Immigration and Customs Enforcement is moving forward with plans for a processing facility on San Antonio’s East Side after signing a new contract to retrofit the building, according to documents reviewed by the News 4 I-Team.
The $17.3 million contract will fund renovations to the sprawling warehouse, a nearly 640,000-square-foot building along the access road of Southeast Loop 410.
The federal government purchased it last year for $66 million, according to county records.
The purchase moved forward despite opposition from some local leaders, who explored whether zoning authority or environmental studies could be used to block the sale. Ultimately, officials acknowledged ICE does not need local approval to buy property.
The Department of Homeland Security awarded the contract to GardaWorld Federal Services, the same company tasked with renovating a future ICE facility in Surprise, Arizona. The cost of that project dwarfs the San Antonio contract — the Arizona job is valued at $313 million, compared with $17.3 million in San Antonio.
According to contract documents, GardaWorld will renovate the structure to serve as a processing and detention facility and will provide “all necessary wraparound services” for its operation.
GardaWorld Federal Services has held federal contracts for years, but this fiscal year has been its most profitable yet, with more than $400 million in obligations, records show.
We got a clearer picture of the facility’s scope in June, when acting ICE Director David Venturella told San Antonio Mayor Gina Ortiz Jones in a letter that the agency is planning for an average daily population of 1,000 to 1,500 people. Venturella wrote that the facility is expected to come online in the second quarter of fiscal year 2027.
Venturella said ICE is moving forward with the project because of increased demand for bed space to streamline the deportation process. He wrote that the facility would be renovated to “safely and humanely” house people.
Officials with the Department of Homeland Security previously issued a statement, writing that these will not be warehouses but “very well-structured detention facilities meeting regular detention standards.”
Jones responded in a letter stating she still opposes the processing center. She also asked ICE for extensive dialogue with local officials before any contracts were issued.
It’s unclear if that dialogue took place before this contract was signed.
As for what’s next, Venturella’s June letter said that once a contract was issued, ICE would collaborate with state and local leaders to review design and engineering plans for the facility.
According to the City of Surprise, Arizona, efforts for GardaWorld to convert a warehouse there are on pause.
“On June 30, 2026, Arizona reached a stipulated agreement with the U.S. Department of Homeland Security and ICE pausing efforts to convert a Surprise property into an immigration detention center until required environmental review is complete,” the city website says.
In July, Mayor Jones told our reporters that the environmental impact of such a warehouse was a concern for her.
“Checking on the status of the environmental impact study that needs to be completed. That’s normally a process that is completed prior to them purchasing a property, and so we want to get clarity on that piece of it,” Jones said.
Letter from ICE to SA Mayor Gina Ortiz JonesPDF previewPreview PDF