Arizona signs P3 contract for management of rest areas
Under the five-year agreement, Infrastructure Corporation of America, a private company, will take over the maintenance and operations of all 14 rest areas and will also implement a sponsorship and advertising program to generate revenue. ADOT will continue to own all 14 rest areas.
Previously, ADOT managed and maintained all of the rest areas under 14 separate contracts with a private company.
ADOT Director John Halikowski, said:
"I am pleased to see ADOT's first public-private partnership get underway. This project shows that it's possible to fund transportation projects with non-traditional funding sources. This partnership is an innovative approach to both business and transportation in which everyone benefits, especially those who use Arizona's rest areas. Public-private partnerships are becoming more common in moving transportation projects forward as transportation funding decreases, both in Arizona and on a national level."
As part of the contract, Infrastructure Corporation of America will be able to pursue new amenities at the rest areas to provide a more comfortable experience for travelers. New features could include Wi-Fi access, dog-walking areas, charging stations for electric vehicles and ATM machines. The contract also calls for on-site staff at the rest areas for 16 hours a day.
The contract does not include adding food and beverage shops within the rest areas. Under federal law, ADOT is prohibited from adding restaurants and stores to rest area facilities.
Under the rest area contract, ADOT is guaranteed at least $1 million over the next 10 years from revenues generated from advertising and sponsorships. That money will go into the State Highway Fund for other transportation projects.