Indiana corrections officials have reversed course on their long-term prison consolidation strategy, announcing that the Indiana State Prison in Michigan City will remain open for the foreseeable future, even after the state’s new $1.2 billion facility in Westville begins operations in 2027.

The Department of Correction (DOC) had originally planned to shutter both Michigan City and Westville facilities once the new Northwest Indiana Correctional Facility was complete, citing aging infrastructure and projected cost savings. That consolidation, announced in 2023, was expected to save about $45 million annually in operating costs.

But now, state leaders say Westville will close as planned while Michigan City will continue housing inmates.

“DOC still intends to close Westville Correctional Facility with the opening of the new Northwest Indiana Correctional Facility,” said DOC spokesperson Annie Goeller. “We have been collaborating with state and local officials on the future of the Indiana State Prison, which we intend to keep open for some time after the opening of the new facility. At this time, we have not yet determined how long that will be.”

The shift comes as Indiana’s prison population climbs. DOC data show the Indiana State Prison is operating at nearly 98% of capacity, while Westville is just over 95%. Unused beds exist in both facilities, but staffing shortages and maintenance issues have kept some offline.

Goeller said the growing inmate population was a factor in the decision to extend the life of the Michigan City site, though she did not confirm whether the move is linked to the state’s recent deal with federal officials to lease up to 1,000 beds for immigration detainees.

The change has drawn pushback from criminal justice advocates. The Indiana Public Defender Council warned that “our prisons are already understaffed, with correctional officers overworked and pulled away from their core mission of humanely housing and rehabilitating the people in their charge. Additional federal demands only hinder the state’s ability to maintain the standards of safety and rehabilitation it has worked hard to achieve.”

The decision also complicates earlier redevelopment plans for Michigan City. In 2024, then-Gov. Eric Holcomb signed a letter of intent to transfer ownership of the prison property to the city by January 2029. Local leaders had already begun gathering public input, with ideas ranging from mixed-use housing to riverfront parks. That timeline may now be delayed or renegotiated.

Meanwhile, construction on the new Northwest Indiana Correctional Facility is progressing ahead of schedule and under budget. Designed by Elevatus Architecture, the sprawling 28-building campus will feature modernized spaces for staff, a dedicated medical and mental health center, educational programs, and industrial work areas. The maximum-security prison will have capacity for 4,200 inmates, making it one of the largest in Indiana.

Officials say the project — the first new state prison in more than two decades — is essential to updating Indiana’s corrections system. But the unexpected decision to keep Michigan City open underscores the challenges of balancing cost savings, capacity, and community redevelopment.

The Indiana Public Defender Council said the move reveals deeper policy issues. “It is no secret that DOC is preparing for a larger prison population, with projections indicating the count could exceed 28,000 by 2028. Policy choices, not crime rates, are fueling this growth,” the group said.

For now, the future of the Michigan City prison property remains uncertain. State officials could delay the handoff, pursue a phased transfer, or negotiate new terms with Michigan City leaders. What is clear is that the historic facility — more than 160 years old — won’t be closing as soon as once expected.

Originally reported by Casey Smith in Indiana Capital Chronicle.