Mass. extends highway plaza leases for 18 months
Up against an end-of-year deadline, state transportation officials moved to stabilize operations at highway service plazas, extending most leases into 2027 after a procurement effort earlier this year imploded.
The transportation agency has finalized 18-month lease extensions with existing operators at most highway service plazas after the developer selected to take over the network withdrew from contract negotiations.
A Massachusetts Department of Transportation spokesperson told State House News Service the agency has reached agreements with Gulf and McDonald's to extend their master tenant leases through June 30, 2027, covering 14 of the state's 18 service plazas.
The remaining four plazas are already under lease through that same date.
Fourteen service plaza leases were set to expire following Applegreen's decision to rescind its proposal after being selected for long-term redevelopment and operations contract.
There are 11 service plazas on the Massachusetts Turnpike and seven on other highways.
McDonald's holds master food leases at 14 plazas and fuel leases at the Newton and Lexington locations on Interstate 95, while Gulf controls fuel leases at the 11 Pike plazas. Seventeen of the 18 plazas provide fuel, with Plymouth the lone exception. Most of the facilities are more than 20 years old.
The MassDOT board awarded the contract to redevelop and run 18 service plazas across the state to Irish retailer Applegreen in June.
The company backed out of contract talks as rival bidder Global Partners waged media, legal and public relations offensives to block the MassDOT-Applegreen deal.
Pressure also came from Beacon Hill -- the Senate Post Audit Committee was set to hold an oversight hearing on the selection process and its chairman, state Sen. Mark C. Montigny. D-2nd Bristol/Plymouth, had urged MassDOT to put it back out to bid.
"After careful evaluation of all risks and options following Applegreen's announcement, MassDOT is preparing to reprocure the Service Plaza contract to deliver the highest quality facilities and services for travelers while ensuring the best value for taxpayers and toll payers," according to an October MassDOT board presentation.
As part of the interim plan, day-to-day plaza management has been transferred to the MassDOT Highway Division, with district-level inspections, centralized corrective actions and a review of maintenance needs underway.
MassDOT plans to review the failed procurement before issuing a revised request for proposals.
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