In 1989, a federal minimum and medium security prison, Federal Correctional Institution - Sheridan, opened on the south side of the city. At that time, Sheridan had a population of around 2,500 people. Sheridan moved its city hall into the old railroad station in January 1993, and expanded the renovated building in 1995. The U.S. Census Bureau erroneously listed the city's population as 3,570 in the 2000 Census after mis-listing the prison's population in the wrong census tract. This error of about 2000 people was enough to throw off the state legislative districts beyond their margin of acceptance and the Oregon Supreme Court ruled the Secretary of State must re-draw the boundary lines to match the correct data. The city also counts the prison population as part of the city's official population. In December 2008, a two-alarm fire gutted the 1875 United Methodist Church in the city.