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Freedom Town is the informal name given to a refugee camp, or "tent city" for the Cubans that came to Miami during the 1980 Mariel Boat Lift who were not granted admission to the United States. Said refugees were ordered into Freedom Town in order to see about their status. It was built under a highway overpass. Similar to refugee camps and military outposts, Freedom Town contained an administrative office, a mess tent for meals, a infirmary tent for the sick and infirm, and multiple tents with bunks for the refugees to reside.
Years later, Tony later returns with Pablo to meet with Sheffield, lured on the idea that they have a lead to finding his estranged wife Elvira, but Tony is ambushed. Tony kills the attackers and Pablo. Pablo mentions Freedomtown is "used for private meetings" so possibliy Sheffield purchased it, or bribed local government officials to make use of the land.
There are also balconies used by guards during the film that Tony can go on. There is also a dock, called Freedomtown Dock. Freedom Town is located in the Northwest corner of the Industrial Park.
Some time between the events of the film and the game Freedom Town was decommissioned by the U.S. government, which is the usual fate of tent cities. However, it appears that the process of breaking camp was poorly done. When Tony returns after a long time, the remnants of Freedom Town remain, albeit looking in a state of disrepair. Tony sees vacated, half-assembled tents along with plenty of discarded newspapers and glass bottles. It is unknown what happened to the other refugees who had resided in Freedom Town alongside Tony and Manny after its closure, but it can be assumed they were either deported to Cuba or granted American citizenship.