Saturday, March 03, 2012

MOCO JUDGE TELLS
HMSHost TO HIT THE ROAD
IN I-95 TRAVEL PLAZA
FIASCO

Montgomery County Circuit Court Judge Eric Johnson rebuffed Bethesda's HMSHost's request to stop the Maryland Board of Public Works from voting on a new I-95 travel plaza contract yesterday.

This means Treasurer Nancy Kopp, Governor Martin O'Malley and Comptroller Peter Franchot are now free to consider the winning bid from Spanish subsidiary Areas USA on March 7 at 10 AM.

The decision is unlikely to be the end of the dispute. Johnson noted that other legal issues outside of the question he ruled on remain. It was somewhat surprising, however, because Johnson felt there was enough evidence on HMSHost's side that he issued the initial injunction.

Now the potential exists for a Maryland-based company - with 1200 employees in the state - to lose a bid to a foreign firm. That is going to be a public relations nightmare, as is the question of a deal that essentially turns 85% of the profits over to Areas.

My guess is that there will be another legal action by HMSHost before Wednesday. This is simply too lucrative of a contract for any bidder to pass it up.

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