How State Infrastructure Procurement Requirements Gave Washington County, Maryland an ICE Processing Facility instead of a Fortune 500 Company Warehouse

Recently released public records show that Washington County, Maryland experienced a significant economic setback when a potential Fortune 500 company withdrew its plans for a substantial investment and job creation due to delays in crucial infrastructure improvements. The property in question, a warehouse on Wright Road, was poised to become a major economic asset, but strict state procurement requirements for public infrastructure ultimately derailed the opportunity, leading to the site’s subsequent acquisition by federal authorities for an immigration processing facility, which is now being challenged in Federal court by the State of Maryland and currently in legal limbo due to a temporary injunction.

This article was updated 4/22/2026 to include additional information regarding the proposed ICE facility.

The sequence of events began in June 2022, when the Washington County Economic Development office initiated contact with Fundrise, the new owners of the Wright Road warehouse. County officials offered assistance in securing tenant leases and developing incentive models for the property. By February 2023, Fundrise was actively working on leasing the asset and engaged with county representatives to discuss the local market and potential tenants. In March of the same year, Washington County provided Fundrise with a comprehensive list of local and state incentive programs designed to attract major businesses.

Throughout 2024, discussions continued regarding specific building requirements, such as restroom capacities, for a prospective 500,000-square-foot distribution user. In October 2025, Fundrise alerted the county to preliminary talks with a significant corporate entity based in Pennsylvania that was considering a relocation. This prospective tenant was identified as a “household name” Fortune 500 company, which anticipated investing over $10 million and creating approximately 75 full-time jobs in Washington County.

However, a critical obstacle emerged by mid-October 2025: the company required occupancy by mid-2027, but the planned extension of Wright Road was not slated for completion until 2028. Fundrise inquired about the possibility of expediting this infrastructure project to remove this concern for the potential tenant. County officials informed Fundrise that due to the involvement of a public entity, the road project was subject to stringent state procurement laws and bidding processes, making it improbable to meet the accelerated 2027-2028 timeline.

The State of Maryland provided clarification on why the infrastructure project likely couldn’t be accelerated. “Maryland Commerce’s role in this matter was limited to supporting the broader business-recruitment effort,” said Andrew Sargent, Senior Business Development Manager at Maryland Department of Commerce. “Wright Road is a County road, so decisions regarding its improvement schedule and prioritization were local rather than State. In general, road projects are typically planned, funded, engineered, and procured well in advance, and those timelines are not always easy to compress around the needs of a single prospect. Commerce was prepared to support the project on the economic development side, but local infrastructure timing was outside the Department’s purview.”

“Infrastructure projects such as the Wright Road extension are planned and delivered in accordance with established procurement laws and required public processes to ensure transparency, fairness, and compliance,” said a representative from Washington County Government. “The County remains committed to pursuing responsible economic development and infrastructure improvements that support long-term growth and opportunity in Washington County.”

Following the collapse of the Fortune 500 deal, the Department of Homeland Security (DHS) began consultations in January 2026 to acquire and renovate the Wright Road site for the establishment of the “New ICE Baltimore Processing Facility.” Following this acquisition, the Washington County Board of Commissioners unanimously approved a resolution supporting the ICE in February 2026. Subsequent meetings with ICE leaders in March 2026 revealed that the facility would serve as a processing center for individuals staying between three to seven days, with an estimated 500 individuals on-site daily. The project now faces a temporary injunction as of April 2026 due to litigation initiated by the Maryland Attorney General, putting the entire project on hold.

The shift from a potential high-value private enterprise to a federal tax-exempt facility represents a substantial economic loss for Washington County. The projected $10 million capital investment and 75 jobs were replaced by a processing center with a transient daily population. Furthermore, the property’s move to federal ownership removes it from the local tax rolls. To offset this loss, the county is negotiating a Payment in Lieu of Taxes (PILOT) agreement, with a proposed $2 per day, per bed. Despite this diminished revenue stream, the county is still proceeding with approximately $1.47 million in capital improvements for the site.

Ironically, while infrastructure improvements were too slow to materialize for the private sector, the County has now expressed interest in prioritizing support of the federal facility. The county estimated $750,000 to $1 million for sewer pump station upgrades to meet the ICE facility’s needs, as well as other numerous infrastructure requirements in support of the facility, and proposed to “begin rather quickly” for the sewer pump upgrades.

The county is now evaluating investment needs for local infrastructure to support federal operations for a facility which may never come to fruition due to continuing legal challenges, while simultaneously missing out over $700,000 in annual property taxes, as well as the sustained economic growth and corporate partnership that a major private sector tenant could have provided. Other identified infrastructure improvements requested for Federal assistance include widening I-81, as well as improvements to Hagerstown Regional Airport.

According to an announcement by Washington County in March, DHS claims the facility could open up 1,125 jobs, although it would likely only hold on average 500 people per day. DHS did not specify the types of jobs which would be created, and Washington County’s notes on the meeting did not include any additional information to back up these claims.

To avoid similar economic setbacks in the future, Washington County (and the State of Maryland) may benefit from a more proactive approach to infrastructure readiness and greater flexibility in procurement strategies. This could involve planning and funding infrastructure in advance, exploring expedited bidding models, establishing dedicated economic development funds for rapid response, and fostering stronger public-private partnerships.

“What stands out is that this was not a sudden or unforeseeable issue,” said a representative from Hagerstown Rapid Response, a local activist group focused on the ICE facility and other local issues. “The county had been aware for years that access and infrastructure were central to the site’s viability, which makes the failure to advance a private economic development opportunity especially consequential. The broader concern is that Washington County appears to have moved forward with a path that favored a federal detention facility over a private investment that would have brought jobs and long-term local economic activity. That raises serious questions about priorities, planning, and transparency.”

One example of this type of accelerated development would be the PA “Fast Track” Program. Housed within the Office of Transformation and Opportunity, this program streamlines approvals for large-scale developments. By bringing project sponsors and permitting agencies together early, the program has saved major developers an estimated 18 months of development time, beating traditional schedules.

However, many of these fast track options would require strong coordination between the County and the State of Maryland, including likely new legislation.

“Residents deserve a full accounting of how these decisions were made and what alternatives were considered,” concluded Hagerstown Rapid Response.

Associated documents for this story are available in our Public Information Archive.

Article by Ken Buckler, based upon information from Washington County Government and previous coverage.

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