NJ must pay $271M for killing tunnel

[LRG]

TRENTON, N.J. – New Jersey owes the federal government more than $271 million after canceling a rail tunnel connecting the state with New York, according to a debt notice obtained Monday by The Associated Press.

 

The letter from the Federal Transit Administration's chief financial officer to NJ Transit's executive director demands payment of $271,101,291 by Dec. 24.

 

It's money the government wants New Jersey to repay for work done on the Hudson River tunnel before Republican Gov. Chris Christie terminated the project. The notification follows a warning letter earlier this month estimating the charges.

 

"FTA demands payment in full within 30 days from the date of this letter, hereinafter referred to as the 'delinquency date,'" the letter states. The letter was dated Nov. 24.

 

NJ Transit Executive Director Jim Weinstein said earlier this month that the state hadn't determined if it would have to pay any money back.

 

NJ Transit has the right to request a review of the charges and to dispute all or part of the debt.

 

Christie spokesman Michael Drewniak would not say Monday whether the charges would be paid in full or disputed or where New Jersey would get the money if it decided to repay the government or was found liable for all or part of the bill.

 

The $8.7 billion project to construct a second rail tunnel between New Jersey and New York — known as Access to the Region's Core, or ARC — was 15 years in the making when Christie pulled the plug Oct. 27, citing potential cost overruns.

 

More than $600 million had been spent for engineering, construction and environmental studies.

 

The federal government and the Port Authority of New York and New Jersey had each committed $3 billion to the project. New Jersey's portion was $2.7 billion plus overruns. Other states including New York immediately began lobbying for the federal share.

 

The tunnel was intended to supplement a century-old two-track tunnel under the Hudson River that has been at capacity for years. The new tunnel would have been able to handle an extra 25 NJ Transit commuter trains per hour during peak periods; without it, New Jersey is left a tunnel that can handle 23 Amtrak and NJ Transit trains.

 

More than 625,000 people trek into Manhattan from New Jersey each work day, about 185,000 by rail, and even a minor delay can translate into long waits.

 

Christie has since said he would consider contributing to a cheaper alternative: extending New York's No. 7 subway line under the Hudson River to New Jersey.

 

John Wisniewski, who chairs the state Democratic State Committee and heads the Transportation Committee in the state Assembly, questioned Christie's financial acumen.

 

"We now know that his looking out for our financial interests will cost New Jersey taxpayers at least $271 million," he said. "To make matters worse, the governor has now pledged New Jersey money to help finance New York's subway expansion — without even seeing a plan or a cost estimate. It doesn't seem like he's being much of a financial watchdog, only a theatrical bulldog."

 

 

Link: http://news.yahoo.com/s/ap/20101129/ap_on_bi_ge/us_trans_hudson_tunnel

[East New York]

I was waiting for this one! Christie is no different from the rest of them. A career politician with an agenda. I hope they make his ass pay back every dollar!

[Fan Railer]

I was waiting for this one! Christie is no different from the rest of them. A career politician with an agenda. I hope they make his ass pay back every dollar!

 

and that money is coming from your taxes.... he should have never been elected in the first place.... seriously, i'm the way this country is running, i might just change my political views to socialism, since it is clear we can't get anything done democratically.....

[East New York]

and that money is coming from your taxes.... he should have never been elected in the first place.... seriously, i'm the way this country is running, i might just change my political views to socialism, since it is clear we can't get anything done democratically.....

 

I may have to join you then! But those are your taxed my friend. I don't live in Joisey.

[Queens Surface]

That was such a stupid move to cancel ARC.

[Kamen Rider]

Please, watch the Nazi Banksters Crimes Ripple Effect at http://jforjustice.co.uk/banksters

[metsfan]

All ready posted this.

 

http://www.nyctransitforums.com/forums/showthread.php?t=24818

 

- A