Potential Revenue Generation Through Commercialization of Arizona Rest Areas

Currently, federal-aid highways are not permitted to offer any motor vehicle service stations or other commercial establishments located on the interstate right-of-way, per federal law (23 U.S.C. § 111). This law was enacted in an effort to spur economic development in towns and communities along the interstate highway system, with an exception for businesses that existed prior to 1960 and were already owned by the state. In addition, federal law prohibits the commercialization of interstate rest areas under the Federal Randolph-Sheppard Act of 1936. The Randolph-Sheppard Vending Facility program was intended to provide blind individuals with lucrative sustaining employment through the operation of vending facilities. The program has since been amended, in both 1954 and 1974, to ensure that blind business owners are prioritized with permits and contracts for the operation of vending machines on federal property. These laws disproportionately prevented the younger western states from providing food, fuel, and other services at rest areas. An additional challenge in Arizona is the significant federal land ownership and the large distances between cities and towns. However, there has been an increased interest in exploring the possibility of lifting the federal ban by state departments of transportation (DOTs) and private sector businesses across the nation as the costs of construction, materials, and other infrastructure demands continue to grow and rest area maintenance has become financially challenging. In 2017, Arizona Governor Doug Ducey petitioned the U.S. Department of Transportation (USDOT) to allow the Arizona Department of Transportation (ADOT) to operate a pilot program that would allow private companies to build businesses at an existing interstate rest stop. However, the effort was met with opposition from NATSO, the trade association representing the nation’s truck stops, travel centers, and off-highway transportation energy providers, and it never moved forward. ADOT is interested in conducting a feasibility analysis to better understand the impacts, benefits, and drawbacks of rest area commercialization in Arizona in the event that the current laws are ever changed. This analysis would help ADOT determine if commercialization is even a viable option for Arizona. As part of the research study, the current state and federal laws, financial and economic implications, and public perceptions will be explored with the advantages and disadvantages thoroughly documented.

Language

• English

Project

• Status: Programmed
• Funding: $0.00
• Contract Numbers:

  SPR-804

• Sponsor Organizations:

  Arizona Department of Transportation Research Center

  206 S. 17th Avenue
  ADOT Research Center
  Phoenix, AZ  United States  85007
• Managing Organizations:

  Arizona Department of Transportation Research Center

  206 S. 17th Avenue
  ADOT Research Center
  Phoenix, AZ  United States  85007
• Project Managers:

  McIlwain, Julie

• Performing Organizations:

  Arizona Transportation Institute

  Civil Engineering, Rm. 324F
  Tucson, Arizona  United States  85721
• Principal Investigators:

  Wu, Yao-Jan

• Start Date: 20241210
• Expected Completion Date: 20251210
• Actual Completion Date: 0
• USDOT Program: Advanced Research

Subject/Index Terms

• TRT Terms: Feasibility analysis; Forecasting; Law; Private enterprise; Revenues; Roadside rest areas
• Geographic Terms: Arizona
• Subject Areas: Economics; Highways; Planning and Forecasting; Terminals and Facilities;

Filing Info

• Accession Number: 01941728
• Record Type: Research project
• Source Agency: Arizona Department of Transportation
• Contract Numbers: SPR-804
• Files: RIP, STATEDOT
• Created Date: Jan 3 2025 4:04PM