The province of Ontario has inked a 50-year deal with Host Kilmer Service Centers (HKSC) to develop and operate 23 service centers located along the 400-series highways throughout the province.
Each new center will feature a full-service fuel station operated by Canadian Tire -- an iconic brand and Canada's largest independent gas retailer -- with an adjacent convenience store.
A well-recognized line up of Ontario-based restaurant brands will be found throughout the network of centers, including: Tim Hortons, Casey's, East Side Mario's, Extreme Pita, Pizza Pizza, Teriyaki Experience, Yogen Fruz, NY Fries, and the fine food market, Pusateri's. In addition, some locations will also feature international food brands such as well: Starbucks Coffee, A & W, Burger King, Brioche Doree, Cold Stone Creamery, and Quiznos.
On-site Ontario Tourism Information Centers will be found at the stops at Tilbury South (eastbound from Michigan) and Bainsville (westbound from Quebec) -- both gateways to the Highway 401 corridor.
"Kilmer takes great pride in having been a part of developing Ontario's infrastructure for three generations and we are so pleased to be working with the world leader in highway concession operations to bring Ontario motorists a superb travel experience," said Larry Tanenbaum, chairman and CEO, Kilmer Van Nostrand Co. Limited.
These modern travel centers will represent HKSC's commitment to advancing sustainable building practices in North America. All centers will feature water-efficient landscaping and environment-friendly facilities, and be designed and constructed to achieve Leadership in Energy and Environmental Design (LEED) Silver certification standards, the developer notes.
Redevelopment of the service center network is planned in several phases. The seven centers in Phase 1, where construction began in early Nov. 2009, are scheduled to open with full dining and services in Sept. 2010. Some of these facilities will deliver fuel services and the adjoining Canadian Tire convenience store beginning in July. Construction on the subsequent three phases will begin throughout 2010-2012, and openings will follow beginning in 2011 and continue into 2013.
Once completed in 2013, the network of centers is expected to generate sales revenue to HKSC of approximately $99.4 million (CAD $100 million) annually or $8.9 billion (CAD $9 billion) over the 50-year term of the agreement. The cost of redevelopment-design and construction of the initial 20 service centers-is approximately $298 million (CAD $300 million).
The majority of the 23 service centers on Ontario's multi-lane divided highways were built in the 1960s. Many were temporarily closed in 2008 when service contracts expired. More than 500,000 people travel these routes daily, and they are among the busiest highways in North America.
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