Winning bidder drops out of state highway service plaza deal
The Irish company that won this summer the $994 million, 35-year deal to renovate and operate Massachusetts' 18 highway rest stops has dropped its plans.
Applegreen announced its decision with a Tuesday night media statement.
The announcement by Applegreen arrived the night before the Senate Post Audit and Oversight Committee was scheduled to hold a hearing on the procurement controversy, according to State House News Service.
But that hearing was called off Tuesday due to "MassDOT and Applegreen's refusal to participate in this week's hearing," which chair Sen. Mark Montigny's office said "has forced the committee chairman to insist upon a total rebid and to postpone the hearing until a later date in October where the committee will call upon the Inspector General."
An artist's rendition of what the Ludlow Service Plaza might look like after renovations. Image provided by Appelgren.The Republican
"I am surprised and deeply disappointed that a public agency failed to disclose critical information to a legislative oversight committee and then refused to even appear for basic questioning," Montigny, a New Bedford Democrat, said.
He said withholding critical information and efforts to avoid public scrutiny leaves he and committee with no choice but to accept the limited information before us as a true and accurate representation of this matter.
"The KPMG financial analysis suggests a staggering loss to taxpayers while ex-parte communications and relationships between a MassDOT official and the winning bidder create the appearance of a conflict as well as a potential violation of the department's own procurement standards" he said. "By failing to appear before this committee, MassDOT and Applegreen have effectively denied taxpayers the answers that they are entitled to. I see no reason to continue this process and urge MassDOT to put this project back out to bid."
Applegreen said Tuesday that three months of good faith negotiations with the state Department of Transportation did not yield lease agreement on definitive terms for the redevelopment of 18 highway service areas.
Ludlow Eastbound services on the Interstate 90, Massachusetts Turnpike. August 11, 2025. (Douglas Hook / The Republican)Douglas Hook
"The open issues have significant implications for the commercial viability of the concession award." the release said.
And there was the opposition from Massachusetts-based Global Partners, which tried and failed to get the deal but indicated it wasn't about to give up.
"In light of these circumstances, Applegreen has terminated ongoing lease discussions," Applegreen said in its statement. "As the largest and most-respected motorway service operator in the United States, Applegreen regrets that it was not able to bring its world-class operating expertise to the Commonwealth."
Sources close to Applegreen said Tuesday the company had spent $10 million already getting ready for construction to begin Jan. 1 and expected to spend another $1 million a week. The source said Applegreen would bid again in a new process.
Tuesday, MassDOT gave no indication as to its next step.
"Our focus is on moving forward to deliver the highest quality service plazas as quickly as possible for the people of Massachusetts," Transportation Secretary and CEO Monica Tibbits-Nutt said.
Applegreen was to have paid the state a minimum of $500 million in rent over the life of the 35-year deal, but it could be as much as $994 million, depending on plaza profitability. The company is owned by private equity firm Blackstone.
Work was to have included not only the Western Massachusetts plazas on the Turnpike — Lee, Ludlow, Blandford and Charlton — but also westbound in Westborough and Framingham, and eastbound in Natick, all in Middlesex County.
There are also plazas southbound in Newton and northbound in Lexington along Interstate 95/Route 128 in Middlesex County and northbound in Beverly along Route 128 in Essex County.
Ludlow Eastbound services on the Interstate 90, Massachusetts Turnpike. August 11, 2025. (Douglas Hook / The Republican)Douglas Hook
MassDOT got proposals from four qualified bidders: 7 Eleven, Applegreen, Bay State and Global Partners.
Waltham-based Global Partners complained, saying its proposal would have guaranteed $1.52 billion over the life of the contract.
Also, Global Partners pointed to its fuel-delivery infrastructure and its relationships with Massachusetts food and beverage suppliers.
Global Partners operates convenience stores at the rest stops now as a sub-tenant.
The firm reiterated its criticisms Tuesday.
"Global Partners has been rooted in Massachusetts for four generations. We are prepared to step in with a proven, low-risk transition plan that guarantees $1.5 billion in rent, and delivers on clean energy, diversity, and community commitments from day one," Eric Slifka, CEO and president of Global Partners, said in a statement. "This process has been difficult for all involved, and taxpayers have already lost valuable time. We stand ready to move forward, honestly, transparently, and in the best interests of our Commonwealth."
Stories by Jim Kinney
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