After a failed redevelopment deal with Applegreen, the Massachusetts Department of Transportation (MassDOT) has extended leases until mid-2027 for 14 of 18 highway service plazas owned by the Commonwealth of Massachusetts.
“MassDOT has finalized agreements with Gulf and McDonald’s to extend their master tenant leases by 18 months, through June 30, 2027,” Marshall Hook, director of communications at MassDOT, told CSP. “These agreements ensure continued operations at 14 of the commonwealth’s 18 service plazas, with the remaining four plazas already under lease through that same date.”
In June, Applegreen won a contract to redevelop and operate all 18 service plazas, but the deal unraveled in September. Applegreen ended negotiations on the $750 million, 35-year lease amid a legal challenge from Global Partners LP, a competing bidder that sued MassDOT over the contract award. The dispute delayed a project that would have rebuilt nine plazas and renovated the other nine.
Now, the current companies that operate the service plazas whose leases were expiring—McDonald's and Gulf—can continue to operate through June 30, 2027.
McDonald’s has master food leases at 14 plazas and fuel leases at the Newton and Lexington locations on Interstate 95, MassLive Media Group reported, adding that “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.”
MassLive reported that “pressure also came from Beacon Hill [home to the Massachusetts State House]—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.”
MassLive also reported that the lease extensions came as MassDOT was “up against an end-of-year deadline” and “moved to stabilize operations at highway service plazas.”
MassDot in October said in a statement that it’s “preparing to reprocure the contract to rehabilitate, operate and maintain the 18 service plazas across the state.” No date was given.
Highway Administrator Jonathan Gulliver, who will oversee the bidding process, said in the statement, “These service plazas play a critical role for our residents, visitors, workers and economy. MassDOT’s focus has always been on delivering the highest-quality service plazas that offer the best value for taxpayers. After careful consideration, we have determined that the best path forward to ensure the success of this project is to reprocure the contract. This will allow us to make any necessary changes to the RFP [request for proposal] to ensure we are attracting robust interest from highly qualified bidders and securing the best value possible.”
MassDOT has said it will work with the current lease holders to ensure that travelers and workers do not experience disruptions to essential services.
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