ARC Tunnel, cont. (March, 2011)

Devoted readers know that in the Fall of 2010, Gov. Christie lumbered to the forefront of a major construction project that would have delivered a train tunnel underneath the Hudson River, connecting New Jersey with New York City. The ARC Tunnel would have permitted increased rail traffic for both New Jersey Transit commuters and Amtrak, with a projected cost of $8.7 billion. New Jersey was to commit $2.7 billion towards this total, with New York and the Federal Government each paying for the $3 billion.

      However, citing concerns about potential cost overruns that might bring the final total closer to $11 billion, Gov. Christie ordered a halt to the project. So it came as a surprise four months later when it became public knowledge that New Jersey was negotiating to reclaim part of nearly $162 million paid to insure the Hudson River rail tunnel project.

     An official says locking in insurance coverage saved taxpayers millions because it insulated the project from potential price increases.

     For those who are continuing to tally the final costs of this Tunnel to Nowhere, here is a partial list of known expenses, to date:

$272 million already delivered to New Jersey from the US DOT, to be reimbursed.

$95.5 million for land leased ONE WEEK prior to the project cancellation

$162 million for the insurance

?? unknown sum for legal work by DC firm attempting to keep Federal funds

$528.5 Billion, plus Legal Fees (total)

    So it came as something of a surprise when Gov. Christie proudly talked about his role in terminating this project by claiming that afterwards the only phone calls he got in protest were from New York Mayor Michael Bloomberg, New York Gov. David Paterson and Manhattan real estate developers.  Odd, how both New Jersey senators made public statements critical of the cancellation-- but maybe they didn't call.  

     Never mind that only two months after canceling the project, he was asking for an unusual $4.4 billion loan from the Port Authority-- which normally only funds projects which connect the states of New York and New Jersey.  Senator Frank R. Lautenberg, Democrat of New Jersey, said, 

“The plan is more proof that the governor killed the critically needed new tunnel to Manhattan so he could use its funding as part of a fix for his political problems. During Governor Christie’s campaign for office, he said borrowing to finance the Transportation Trust Fund is unconscionable. Why is it now acceptable?”

 Once again, Gov. Christie continues to put spin on a story, making himself a hero for saving the New Jersey tax payers from the evil doers on the other side of the Hudson.