Big service plaza operators shun Massachusetts

None of the big interstate service plaza operators bid for the eleven on offer by the Massachusetts Turnpike. Two local groups made bids - Bulfinch Pike Investors, a special purpose company registered in Needham MA offered $180.2m, and Saracen Properties, a property manager in Waltham MA offered $140m.

Mass Pike would be transferring to the new owner an assured income of around $17m a year based on the major food vendor McDonald's 25 year franchise paying the owners $11m/year and the major motor fuels vendor Gulf Oil paying paying around $6m/year on a ten year franchise.

Although those are the major concessions the service plazas have other opportunities. And costs.

The Mass Turnpike's published financial accounts don't single out the service plazas as an operating unit.

The last financial report for the six months ending June 30, 2008 show "Restaurants, concessions and (motor) service stations" as providing $8,749k or about $17.5m/year if the payments are spread evenlyh through both halves of the financial year.

 The accounts don't show the expenses the Turnpike incurs for their upkeep.

The Turnpike Authority may not be able to complete any service plaza sale even if there is an inclination.

The Authority's July board meeting was cancelled and it may cease to exist before action can be taken.

The Governor has signed legislation to abolish the Authority. The Turnpike assets and liabilities will be taken over by the Highways Division of a new Massachusetts Transportation Department, which despite its name will have its own appointed board, and anywhere else would be called a transportation authority.

List of service plazas:

http://www.masspike.com/travel/centers.html

New logo

On the Mass Pike website there's a new logo with the old Turnpike puritan hat previously upright tilted at a rakish angle and the Authority put under the Executive Office of Transportation (see upper right).

TOLLROADSnews 2009-07-27