Controversy over CT rest stop contracts

Hartford, Connecticut (WTNH) - The deal to renovate highway rest areas has some in the general assembly scratching their heads.

The State Department of Transportation says the state's 23 highway rest service areas on I-95, 395, and Route 15 are in need of serious revamping and updating. They've found the deal of a lifetime, but some question the plan.

Under the old deal the state got 11 cents-per-gallon for each of the approximately 50 million gallons of gas sold each year at those service areas, which is on top of the gas tax. Under the new deal that state only gets a penny.

State Budget Director Robert Genuario said, "The facts are the eleven-cents-per-gallon is not based on any current analysis of reality or facts. The market has changed."

Under the old deal the state got 5-percent of all non-fuel sales. Under the new deal it only gets 1.25-percent.

The private company that gets the contract is willing to put up $178 million -- plus more in later years -- to do all the construction work to revamp the rest service areas.

"Three new buildings, rehabing the other twenty completely -- it's just desperately needed,” stated Paul Landino with Project Services LLC. “And we believe we can bring additional services along with that infrastructure."

Meaning there would be more food and retail choices for consumers and, the company says, more jobs for Connecticut residents.

The Connecticut Department of Transportation told lawmakers that for the state to borrow the same amount of money, through bonding to do all the improvements, it would cost much more than the amount of revenue they're losing in the deal.

D.O.T. Commissioner Joe Marie stated, "The upside of this deal is that over the long term it would have lost the state a lot more to bond -- this in the traditional state bonding capacity -- than it is going to be using private equity."

"We need to have the discussion about whether revamping rest areas is our top economic development priority in this state,” explained Stamford’s Senator Andrew McDonald (D). “I don't think it is. I think they need to be improved but it is not among the priorities of the state."

The D.O.T. says this is a "best value" and not a low bid. They may be losing about $10 million a year in revenue, but to borrow what it would cost to rebuild would run $13 million a year.