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The Roxbury ICE warehouse deal is dead. Roxbury already knows what it cost.

DHS scrapped its plan for a 1,500-bed detention center at 1879 Route 46 weeks ago. This week, a letter from Roxbury's mayor quietly confirmed something no outlet has yet detailed: the property has changed hands again, and the township has already tallied the tax hit.

Roxbury Township, Morris CountyJuly 8, 20267 min read
Property dispositionRoxbury Township№ 1879 Route 46Tax impact disclosed

For five months, the 470,000-square-foot warehouse at 1879 Route 46 was the most fought-over piece of real estate in Morris County. Now, weeks after the federal government walked away from its plan to turn the building into an immigration detention center, a new detail has surfaced — one that hasn't made it into other coverage of the saga: Roxbury Township says the property has already been sold again, and the township has put a number on what that's cost its budget.

Timeline

How we got here

Feb. 19, 2026

1879 Route 46DHS purchase closes

DHS closes on the purchase of 1879 Route 46 for $129.3 million, buying from DG Roxbury Property Owner LP — a partnership majority-owned by a Goldman Sachs asset management fund with Dalfen Industrial as minority partner. Plans call for a 1,500-bed ICE processing facility.

Late February–April 2026

Roxbury / TrentonLocal and state opposition

Roxbury's all-Republican Township Council, Gov. Sherrill, and New Jersey's congressional delegation all publicly oppose the plan, citing water, sewer, and public-safety infrastructure concerns. The township and state pursue legal action.

May 2026

Federal reviewIndefinite hold

The project is placed on indefinite hold pending completion of a federal environmental review.

Mid-June 2026

Roxbury facilityFacility canceled

DHS cancels the Roxbury facility outright, one of seven detention-center sites nationally the agency drops from an original slate of purchases. Sherrill and Attorney General Jennifer Davenport call it a win for the township and state.

Early July 2026

Mayor's letterTax loss disclosed

In a letter to the governor's office, Mayor Shawn Potillo says Roxbury has already lost $1.8 million in tax revenue "when the warehouse... was sold" — the first public indication that the property has changed hands again since DHS's exit.

Open record

What Potillo's letter actually says — and doesn't

The mayor's letter was written in a different context: it was pressing Governor Sherrill to declare a state of emergency over the July 3 storm, and cited the tax loss as evidence that Roxbury's finances are already strained heading into a costly storm-recovery effort. But buried in that argument is a fact nobody else appears to have reported — that the warehouse sale DHS backed out of has already been followed by another transaction.

What we don't yet know: who bought it, what it sold for, and — critically for Roxbury's budget — what tax classification the new owner falls under. If a private industrial buyer purchased the site, it would return the property to the tax rolls, which cuts against a straightforward reading of Potillo's $1.8 million loss figure. If the loss instead reflects the gap between the property's prior assessed value under private ownership and its value while under federal — and therefore tax-exempt — ownership, that's a different and more explainable number. Potillo's letter doesn't specify which, and we haven't been able to independently confirm the transaction through county property records as of publication.

Regional stakes

Why this matters beyond Roxbury

The Roxbury fight was one of the more closely watched local flashpoints in a national pattern: ICE spent roughly $1 billion acquiring warehouse properties around the country to expand detention capacity, then reversed course on seven of those sites — including Roxbury — reportedly transferring or reselling them. How those properties land, tax-wise, is a live question for every one of those seven towns, not just this one. A federal court case tied to the Roxbury property has also been described as pending in earlier reporting; we have not confirmed its current status and are treating that as open.

For Roxbury specifically, the stakes are concrete: a township that spent five months fighting to keep the facility out now has to account for a real budget hole, on top of whatever overtime and cleanup costs come out of the July storm. Getting the actual disposition of the property on the record — deed, buyer, assessed value — is the next reporting step, and it's one we're actively pursuing through Morris County property records.

On the record

"We must reiterate in the strongest possible terms that this property is not an appropriate location for a facility of this nature in a suburban community." — Mayor Shawn Potillo and Roxbury Township Council, joint statement, February 2026

Sourcing & standards

DHS's original purchase and cancellation are confirmed through multiple contemporaneous reports (CoStar, New Jersey Monitor, Real Estate NJ, NJ 101.5) and public statements from the Governor's Office. The $1.8 million tax-loss figure and the characterization that the property has been "sold" come directly from Mayor Potillo's letter to the Governor's office, cited in our July 8 storm-response coverage; we have not yet independently verified the underlying transaction through county deed records. We will update this article, or file a follow-up, once the sale is confirmed through public records. Readers with information on the transaction are encouraged to reach out.