Halloran & Sage attorneys recently closed a deal to allow the State’s 23 service plazas to be redeveloped. Representing the Connecticut Department of Transportation (“DOT”), our attorneys negotiated a thirty-five year concession agreement with Project Service LLC to redevelop, overhaul and manage the operations of the state’s 23 service plazas located on I-95, I-395, the Merritt Parkway, and the Wilbur Cross Parkway. Project Service LLC is a joint venture of the Carlyle Group and Subway. Lead attorneys on the project were Halloran & Sage Partners Ann Catino and James Maher.
Our attorneys served as lead counsel for DOT in the preparation and negotiation of the long-term concession agreement and other ancillary agreements, which govern, among other things, the use and redevelopment of the service areas and compensation to the State. Under the agreements, Project Service will invest approximately $178 million to complete the upgrades and improvements, including an additional commitment from Project Service LLC to invest or upgrade and refresh the plazas again just prior to the contract’s expiration. All 23 service plazas will undergo some form of redevelopment over a five year period and new food vendors will be added, including Subway and Dunkin Donuts at all locations.
The project involved a nearly two-year collaborative effort with a team from the Connecticut DOT and its consultants, and a number of different agencies that had a role in reviewing and approving the initiative. Legal services provided included counsel regarding the RFP development, vendor selection, environmental and transition issues, and negotiation of the substantive agreements.
As details of the project were publicized, DOT Commissioner Joseph Marie said the agreement “marks the beginning of a new era of convenience and service for the millions of travelers on these major highways every year” and praised the team that brought the package to fruition.
Additionally, Governor Rell released a statement that included details of the project and its benefits to the state. Governor Rell believes the project is an “unprecedented commitment to economic development, jobs and meeting the needs of the traveling public.” “We are changing the face of our service plazas to make them as inviting, safe and convenient as possible to hundreds of thousands of daily travelers on our most heavily used highways,” said Governor Rell.
The State of Connecticut expects to receive approximately $500,000,000 of economic benefit over the life of the agreement.
Halloran & Sage is quite pleased and proud to have served the State of Connecticut DOT in this development, which will have a very long term and lasting impact on our State, its residents and the traveling public.
Halloran & Sage is a full service law firm with offices in Hartford, and Middletown, Connecticut and a branch in Washington, DC. Founded in 1935, the Firm’s client base ranges from Fortune 500 companies to closely held businesses, institutional and private investors, government units, public and private universities, and other non-profit organizations.