Changing face of Rest Stops – As some states close highway rest stops, others see roadside revenue

August 4, 2010 at 4:04 pm

States that aren’t allowed to lease rest-area space to businesses have to pay millions of dollars each year to clean and maintain the facilities.

Amplify’d from www.stateline.org
Last month on the busy Interstate 95 corridor, Delaware unveiled a new $35 million welcome center, which houses restaurants and shops and is expected to bring additional money to the state.

New Mexico is the most recent case in a rash of rest-stop closures that has affected states from Vermont to California. Facing enormous budget deficits, many states have raided transportation funds, forcing them to shut down all but the most necessary of operations. For Arizona, Louisiana and Virginia, the shuttering of roadside rest stops has become one of the most visible signs of the current budget crisis.

In Delaware, however, the story couldn’t possibly be more different. Last month, Delaware unveiled a sparkling new 42,000-square foot welcome center on the busy Interstate 95 corridor. Not only did Delaware not spend a dime constructing what amounts to a $35 million mini-mall in the highway median. The rest stop actually makes Delaware money. The state’s contract with HMSHost, a company that runs retail operations at many airports, gives Delaware a percentage of revenues from sales of gas, food and other goods — at least $1.6 million per year for 35 years.

There’s always been a difference between the highly commercialized highway rest areas in the Northeast and those in the South and West, where the stops often are little more than parking lots with bathrooms and perhaps some vending machines. But the contrast has never been more stark than it is now. The states with commercialized rest stops like Delaware are free to find ways to milk them for more and more revenue. Meanwhile, the states without commercialization are coming to see highway rest areas as a financial drain they might just as well do without.

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