The company that won the bid to redevelop 18 highway service plazas in Massachusetts is dropping out of the project. In a statement Tuesday, Applegreen, a company founded in Ireland, said it was not able to reach an agreement with MassDOT.
“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,” the company said.
Lease discussions terminated
Applegreen also cited legal costs. Waltham-based Global Partners, which lost the bid to take over the service plazas, has been challenging the decision in court.
“These commercial realities have been coupled with costly and continued litigation threats from an opposing bidder that have jeopardized the project’s timeline and financing,” Applegreen said. “In light of these circumstances, Applegreen has terminated ongoing lease discussions.”
In June, MassDOT awarded a 35-year contract to Applegreen. The company planned to knock down and rebuild nine rest stops, many of them on the Mass. Pike, and significantly upgrade nine more.
Global Partners claimed its bid was nearly $1 billion higher, a figure that was disputed by Applegreen and MassDOT. Earlier this month, Global Partners asked a Suffolk Superior Court judge to block the contract.
“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,” Applegreen said.
In a statement, Eric Slifka, CEO and President of Global Partners said, “Applegreen’s decision to walk away underscores the very concerns raised for months: their proposal was never financially sound and never in the best interests of the Commonwealth.”
Slifka also said there are “troubling questions about conflicts of interest and ethics violations still unresolved.” Slifka said Global Partners is prepared to step in with a “low-risk” transition plan.
Applegreen “no the longer right partner”
In a statement, Transportation Secretary and MassDOT CEO Monica Tibbits-Nutt said Applegreen is no longer the right partner for the project.
“This project has always been about delivering the best experience for the drivers and customers who use our service plazas,” Transportation Secretary and MassDOT CEO Monica Tibbits-Nutt said.
“After a comprehensive, transparent selection process, additional negotiations were always expected between MassDOT and Applegreen to provide the best possible value for taxpayers. It is now clear that Applegreen is no longer the right partner to deliver on this project. Our focus is on moving forward to deliver the highest quality service plazas as quickly as possible for the people of Massachusetts.”
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