Streams

Down to the Wire on Whether NJ Will Pay $271 Million for Cancelling ARC Tunnel

Tuesday, January 25, 2011 - 08:23 PM

(New York - Jim O'Grady, WNYC) The clock is ticking on a proposed deal between the feds and New Jersey Governor Chris Christie over his decision in October to cancel the ARC rail tunnel under the Hudson because of projected cost overruns.

Christie has until the end of today to decide whether he will reimburse the Federal Transit Administration $271 million spent on ARC. In exchange, the agency would then turn around and hand back $128 million to the state for projects that improve air quality by cutting traffic congestion.

Meanwhile, earlier today Christie told Bloomberg TV: "We're having conversations with Mayor Bloomberg and others regarding the extension of the No. 7 train to Secaucus, New Jersey, which would do what we really wanted the ARC tunnel to do originally." (See WNYC for the full story.)

Governor Christie has said the state doesn't owe the money. Last month, he directed New Jersey Transit to hire Patton Boggs, a high-powered Washington law firm, to make the case for him with the federal government--by lawsuit, if necessary. The firm now stands ready to file suit if an agreement isn't reached in the next several hours.

"We have until midnight tonight," said Christie spokesman Michael Drewniak earlier today. "We have about seven hours and forty-nine minutes, something like that. We expect that our attorneys in Washington will be filing a timely response today."

Asked at a transportation conference in Washington how the negotiations were going, FTA Administrator Peter M. Rogoff declined to comment. The agency has already granted the state two extensions on an original deadline of December 24.

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