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MassDOT Service Plaza Contract in Limbo After Awarded Bidder Pulls Out
Applegreen ended talks over commercial viability and costly litigation from rival Global Partners, after spending nearly $10 million preparing for redevelopment of 18 Massachusetts service plazas.
- Late Tuesday, Applegreen, the Irish fuel forecourt retail group, terminated lease talks after three months, saying, `After three months of good faith negotiations, Applegreen and MassDOT have not reached agreement on definitive terms for the redevelopment of 18 motorway service areas in Massachusetts.`
- After three months of talks, negotiators failed to agree on definitive terms as Applegreen cited commercial realities and litigation threats from Global Partners that jeopardized the project.
- KPMG's financial review showed a wide revenue gap: Applegreen's projection was $623 million to $994 million, while Global Partners' bid guaranteed $1.3 billion to $1.5 billion.
- Local construction and operational jobs tied to the redevelopment are now at risk, threatening approximately 750 construction jobs and 1,500 operational jobs, while Massachusetts loses up to $994 million in projected revenue.
- The announcement arrived the night before a Senate Post Audit and Oversight Committee hearing, which was postponed after MassDOT and Applegreen refused to participate; a source said Applegreen spent close to $10 million preparing for Jan. 1.
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Total News Sources12
Leaning Left3Leaning Right1Center7Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
L 27%
C 64%
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