WASHINGTON ? This week Sen. Mark Kirk (R-IL) announced that he is planning to introduce a bill that would allow states to commercialize rest areas.
NACS opposes this and similar efforts and will be calling on members to take action by phoning and writing letters to their senators and representatives. NACS does not believe that rest area commercialization is a viable solution to state budget deficits and is a member of a coalition dedicated to fighting this effort, Partnership to Save Highway Communities.
The legislation, likely titled the ?Lincoln Legacy Infrastructure Development Act,? would allow states to request permission from the U.S. Department of Transportation (DOT) to commercialize rest areas, funneling 5 percent of the revenues from the commercialized rest areas back to the DOT to fund activities related to public-private partnerships (PPPs).
Businesses located off the highway ? such as convenience stores ?�cannot compete with commercialized rest areas. These rest areas are opportunely located on the highway right-of-way and would result in an unfair competitive environment for privately operated businesses and will ultimately destroy a successful economic business model that has proven beneficial for both consumers and businesses.
According to a recent Virginia Tech Office of Economy Development study, allowing for the commercialization of rest areas nationwide would place convenience stores, truck stops, restaurants and other commercial services at a competitive disadvantage. The study also notes that if the existing non-commercial rest areas in 611 counties were commercialized, it would result in losses of more than $55 billion in annual sales for commercial interchange businesses nationwide. Researchers also predict a 46% decrease in Interstate-serving convenience store sales in each county, as well as an estimated $38.2 million in lost annual sales and resulting tax revenue from Interstate-serving convenience stores.
Enabling the commercialization of rest areas will serve to destroy economic value to cities and towns dependent on interstate-based businesses. Ultimately, allowing the commercialization of rest areas will result in fewer restaurants, convenience stores, hotels and truck stops along our nation?s Interstates.
State DOTs are aggressively lobbying Congress to support rest area commercialization.�Here additional threats identified by the coalition:
- In the House of Representatives, Rep. Larry Buschon (R-IN) is promoting rest area commercialization as solution to state budget woes.�
- Several members of the Massachusetts congressional delegation, including Rep. Barney Frank (D-MA), are planning to write Secretary of Transportation Ray LaHood requesting that the federal government lift the ban on commercial development of the interstate right-of-way in effort to allow a commercial vendors to take over recently closed rest areas.
- The Obama administration?s draft transportation reauthorization legislation contains two provisions of concern:�
- A provision expanding DOT?s authority under its SEP-15 program that would allow the department to waive statute to allow the states to ?innovate? and generate revenues.�Previously through this program, California, Washington and Oregon applied to commercialize rest areas but DOT did not have the authority to waive statute.�Under this proposal they would.
- The administration wants to allow electric vehicle charging at rest areas, effectively transferring the role of providing consumers with energy for transportation from the private sector to the government and pushing a ?nose under the tent? that potentially would open the door to expansion of commercial activities at rest areas.
In addition to Sen. Kirk?s legislation, both the House and the Senate are likely to introduce their transportation reauthorization legislation in the coming days, with markups planned in July. While coalition members have been working to ensure that rest area commercialization is not included in this legislation, the threat of amendments is growing.
A draft letter will be provided this week for NACS members to send to their members of Congress asking them to oppose rest area commercialization. If you have questions about this issue, contact Corey Fitze at cfitze@nacsonline.com.
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