MD BOARD OF

PUBLIC WORKS

HANDS I-95

TRAVEL PLAZAS

TO

AREAS USA

Existing Operator HMSHost May Sue

The travel plaza soap opera appeared to reach its grand finale yesterday, as Maryland Governor Martin O'Malley and Treasurer Nancy Kopp voted to approve a public-private partnership with Areas USA.

But just as the fat lady prepared to enter from stage right, Areas USA's Bethesda rival HMSHost stole the spotlight, threatening new legal action in what it says was an unfair process.

Comptroller Peter Franchot continued to enhance his growing reputation as an independent player, strongly questioning the wisdom of proceeding with the deal under such legal storm clouds.

The 2-1 decision puts the state in the awkward position of having evicted a Maryland company - with over 1,000 employees in the state - from its travel plazas. And doing so days after HMSHost was named "Best Overall Food and Beverage Operator" in the United States. And just won a ton of awards for its airport concessions at American airports nationwide.

Oops.

Now HMSHost may have to fire employees who worked at or managed the plazas. Not exactly a great PR move for the state during a time of record unemployment.

The other concern, and sadly, one that is all too common in today's Montgomery County, is that poor government relations with HMSHost will make them more likely to move their headquarters to a more business-friendly place. Like Northern Virginia? Here we go again.

Areas USA's bid is an impressive one. Should their very optimistic revenue projections be met, the deal would clearly be a winner for the state. O'Malley and Kopp are gambling that this will be the case.

It would be better, however, for the state to hear a matching offer from HMSHost and Airport Plazas/Tishman Construction. If they can't match it, then the taxpayer can be confident that they got the best deal from Areas.

I hope we can have that type of closure. That would avoid lengthy trials. And it would give Areas USA a chance to proceed with 110% effort on building two outstanding travel plazas, without this soap opera diverting company time and resources.

At this hour, however, it appears that only a judge can order such a resolution to this dispute.

MD TRAVEL PLAZA

CLIFFHANGER:

WILL THEY OR

WON'T THEY?

Courtroom Shocker Leaves

Maryland Board of Public Works

Free to Vote on Controversial

Contract Wednesday

Yet another twist in the ongoing soap opera over the future of Maryland's I-95 travel plazas occurred in court today. The Montgomery County judge weighing a 10-day restraining order requested by HMSHost now won't rule until Thursday. Just one problem: the Maryland Board of Public Works is scheduled to vote on the matter tomorrow.

Montgomery County Circuit Court Judge Eric Johnson announced his decision today, leaving the Board with the option to approve the winning bid by Spanish subsidiary Areas USA, or table the matter until Johnson's final ruling.

Bethesda-based HMSHost has argued that Areas' bid has wildly-overblown financial projections, and that HMSHost was excluded from a final round of negotiations between Areas and the state.

Johnson's announcement sets up a double-cliffhanger. First, will the Board go ahead and vote on the matter despite the legal uncertainty? And will Johnson provide HMSHost, Airport Plazas LLC and others with the reopened bidding process they seek on Thursday?

Stay tuned!

BETHESDA'S HMSHost

FILES LAWSUIT

TO HALT MD TRAVEL

PLAZA CONTRACT AWARD

As expected, Bethesda hospitality firm HMSHost has asked for a legal injunction in the Montgomery County Circuit Court to stop the awarding of I-95 travel plaza contracts to Areas USA.

Areas USA, a subsidiary of a Spanish company, is set to have its $56 million contract voted on by the Maryland Board of Public Works on February 22.

HMSHost and Airport Plazas LLC/Tishman Construction have formally complained that the state did not have a fully transparent bidding process. Neither was allowed to counter Areas' final offer, according to the companies, and they've raised questions about the accuracy of the winning bid's financial projections.

MD TRAVEL PLAZA

SOAP OPERA

CONTINUES TO

GENERATE SUDS

Bethesda's HMSHost May File Suit,

Questions Raised About Areas USA

After the Maryland Transportation Authority's strong rejection of HMSHost and Airport Plazas complaints of an unfair bidding process, new questions have been raised about the Spanish subsidiary, Areas USA, primed to renovate and operate two I-95 travel plazas.

HMSHost may go to court over the matter.

One interesting note is that the Baltimore Sun coverage is now acknowledging that Areas is in fact a subsidiary of a Spanish firm.

That's one of the most compelling storylines about this matter. Even as state elected officials stress job creation, they would be choosing a foreign firm over one that pays heavy state and Montgomery County taxes.

Areas also lacks experience in managing travel plazas, though that doesn't mean they wouldn't be successful; the company has a large portfolio in related transportation services.

It is not known if Airport Plazas intends to pursue legal options in the matter, as well.

Meanwhile, losing bidders are questioning the Areas bid, saying that there's no way Areas can operate a plaza for the relatively small amount it has claimed.

One other twist to consider: when this matter goes to the Board of Public Works on February 22, all three board members hail from Montgomery County, home to HMSHost.

HMSHost I-95 TRAVEL

PLAZA CHALLENGE

REBUKED BY MTA

Recent challenges to the Maryland Transportation Authority's decision, to allow Spanish subsidiary Areas USA to redesign and operate two I-95 travel plazas, were batted down yesterday.

The MTA rejected complaints about the bidding process from Bethesda-based HMSHost, and a joint bidder, Airport Plazas/Tichman Construction, yesterday.

While restating that Areas USA had the best bid, officials did not provide much detail about the main issue raised; complaintants believed they had been denied a fair chance to counter Areas' final offer.

A final vote will be cast February 22 by State Treasurer Nancy K. Kopp, Gov. Martin O'Malley and Comptroller Peter Franchot.