Dive Brief:
- Global Partners LP has requested a court order to block the Massachusetts Department of Transportation from finalizing its deal with Applegreen to redevelop and operate 18 state highway service plazas, the convenience retailer announced last week.
- In a lawsuit filed in Suffolk Superior Court, Global Partners said it seeks a temporary restraining order and preliminary injunction to halt the deal, according to the announcement. Global Partners continues to argue that Applegreen and MassDOT’s deal was “fatally compromised by illicit communications, undisclosed conflicts of interest, and violations of Massachusetts procurement and ethics laws.”
- Applegreen and MassDOT have repeatedly denied any wrongdoing. If their agreement proceeds, Applegreen’s travel plazas will have a significant presence along Massachusetts state highways over the next 35 years, continuing the Dublin-based retailer’s focus on U.S. expansion.
Dive Insight:
This continues Global Partners’ ongoing lawsuit it filed against MassDOT earlier this summer. In early August, the Waltham, Massachusetts-based convenience retailer filed a lawsuit accusing the transportation agency of “willfully violating the Massachusetts Public Records Law by failing to timely provide key documents” from its $750 million deal with Applegreen, which was approved in mid June.
In its latest filing, Global Partners continues to call out what it calls the “improper and prohibited communication” of Scott Bosworth, the state official who helped oversee Applegreen’s proposal to MassDOT. The retailer has cited concern over Bosworth’s past involvement with Applegreen and whether his professional relationships may have impacted MassDOT’s decision. Global claims Bosworth “accepted personal favors and maintained undisclosed personal relationships with members of Applegreen’s bid team,” which it says violated both state law and MassDOT’s rules on conflicts of interest.
“These violations are not abstract,” said Sean T. Geary, chief legal officer of Global Partners, in the announcement. “Text messages confirm that Applegreen’s board member, Suffolk executives, and Applegreen’s lobbyist had a direct line to the Chair of the Selection Committee during every critical moment of the process. That alone should disqualify them under MassDOT’s own rules.”
Global argues that Bosworth’s “violations are so pervasive that the contract cannot stand.” The convenience retailer is asking the court to reject MassDOT’s deal with Applegreen, disqualify Applegreen as a prospective bidder and either award the lease to Global or “order MassDOT to take further action to restore fairness, accountability, and nearly a billion dollars in additional guaranteed value for Massachusetts taxpayers.”
Applegreen, MassDOT and their associated parties have rejected any notion of wrongdoing during the process. An Applegreen spokesperson said in a statement to C-Store Dive that none of the released messages were either related to the company’s request for proposal or in violation of communication regulations.
Meanwhile, Applegreen’s top leadership is accusing Global Partners of embarking on a “campaign of misinformation,” Bob Etchingham, the retailer’s co-founder and executive chair, said in a statement.
“It’s time for Global to end a campaign that is designed to slow down the transfer of these plazas — and therefore slow the investments, operational improvements, superior operations and enhanced sustainability that the residents of Massachusetts deserve,” Etchingham said.
A spokesperson for Blackstone, Applegreen’s parent company, similarly said in a statement that Applegreen won its bid for the travel plazas due to its “bold vision” and nothing else.
“The communications released show nothing more than a cordial professional relationship between MassDOT officials and our consortium,” Blackstone’s spokesperson said. “There is absolutely nothing in the thousands of public documents recounting the bidding process that suggests anything to the contrary.”
