Subway lands highway rest area contract: 35-year deal will bring $500 million, new jobs to state

Gov. M. Jodi Rell announced Thursday the state has awarded the contract for the 23 service plazas to Doctors Associates/Paul Landino, which represents Subway, and The Carlyle Group, a private equity firm. Alliance Energy of Lexington, Mass., which has an office in Branford, will run the gas stations and convenience stores at the rest stops.

The state will reap $500 million over the length of the 35-year contract, which goes into effect Dec. 7, Rell said.

"This is an unprecedented commitment to economic development, jobs and meeting the needs of the traveling public," Rell said in a prepared statement.

"We're thrilled," said Paul Landino, president of SubCon, which handles development for Subway in parts of Connecticut and New York. "It's been a devotion of mine and our team for a year and a half."

Subway, one of the largest fast-food retailers in the world, and Dunkin' Donuts will operate at all service plazas that serve food, along with other vendors at the larger stops. McDonald's, which has provided Big Macs and Chicken McNuggets to travelers on Interstate 95 since 1985, will stay in at least eight of the 10 stops where it's now located, Landino said.

There may not be McD's at the two small buildings on I-95, Branford southbound and Madison northbound, but that could change, he said.

Landino said the northbound I-95 plaza in Milford will be renovated starting next year, while the southbound stop will be completely rebuilt. The two Darien stops also will be rebuilt, he said.

"My expectation is that this is going to be a great project," he said. "Subway is so important for me in Connecticut and that's the driving force, and at the same time I'm very interested in having the facilities look great for the state."

ExxonMobil has run the gas stations at all state rest stops since 1982. Alliance Energy markets gasoline under several brand names, including Global, Exxon and Shell, as well as Mr. Mike's and Fast Freddie's convenience stores.

Rell's announcement said jobs at the service plazas should increase from 750 to 1,000 after the plazas are renovated. The contract will cost the developers $178 million, Landino said.

State Transportation Commissioner Joseph F. Marie said the agreement "marks the beginning of a new era of convenience and service for the millions of travelers on these major highways every year."

The service plazas are on I-95 in Darien, Fairfield, Milford, Branford and Madison; on the Merritt Parkway in Greenwich, Fairfield and New Canaan; the Wilbur Cross Parkway in Orange and North Haven; and Interstate 395 in Montville and Plainfield. There are two in each location except Montville.

The busiest service plazas are in Fairfield County. Between 2003 and 2007, the Darien stop averaged $9.6 million in food and non-fuel sales and 5.5 million gallons of fuel sold, the DOT said.

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