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N.J. Gov. Christie to pull plug on Hudson River tunnel project unless other financial source is found

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Bloomberg, Paterson would like to see project move forward, but unwilling to commit funds

hudson-river-tunnel-project.JPGARC Tunnel Project has been put on hold by N.J. Gov. Christie.

TRENTON — Gov. Chris Christie and one of his top transportation officials were speaking at separate events in different parts of the state today, but were reading off the same playbook.

Statements today from Christie in Trenton and NJ Transit executive director Jim Weinstein in Westfield cast doubt on New Jersey’s ability to afford America’s largest public works project.

And barring a last-minute Hail Mary pass, Christie on Friday will pull the plug — again — on the multi-billion dollar Hudson River train tunnel.

Christie said he was comfortable walking away from the project unless the federal government finds another source of money to cover cost overruns on the Access to the Region’s Core (ARC) project, which is projected by Christie’s advisers to cost $2.3 billion to $5.3 billion more than the original $8.7 billion price tag.

"I don’t want to hear about the jobs it will create. If I don’t have the money for the payroll," it will not create the jobs, Christie said. "This is not a difficult decision for me."

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The governor killed the project on Oct. 7 after saying the real cost would be at least $11 billion and that he did not want to put state taxpayers on a "never-ending hook." The next day, U.S. Transportation Secretary Ray LaHood persuaded the governor to wait two weeks to explore funding options.

The reprieve ends on Friday.

"Every person who has criticized this decision, ask them a follow-up," Christie said this morning. "How would you pay for it? I can’t write the check if there is no money in the account."

Speaking to rail proponents in Westfield around the same time, Weinstein said, "At this point, I don’t see how we can afford it."

Former Westfield Mayor Tom Jardim, who last week wrote a blistering guest editorial in The Star-Ledger saying there was a "special place in political hell" for Christie and other politicians who undid two decades worth of planning for the tunnel, attended Weinstein’s talk before the Raritan Valley Rail Coalition.

"What I heard did not make me optimistic," Jardim said.

Later today in Manhattan, LaHood, attending a ceremony unveiling the latest plans for a new Moynihan Station at the Farley Post Office across 8th Avenue from New York Penn Station, said discussions to save the ARC project were continuing between federal officials and Christie.

"We’ve been meeting with his staff," LaHood said.

With a $3 billion federal commitment, the nine-mile tunnel from Secaucus to midtown Manhattan was intended to double NJ Transit’s capacity during rush hour. Proponents said the tunnel would also take cars off the road, create jobs and increase property values along the rail line.

The project initially was priced at $8.7 billion, with $3 billion coming from the federal government, $3 billion from the Port Authority of New York and New Jersey, and the remaining $2.7 billion pledged by New Jersey, including $1.25 billion in New Jersey Turnpike Authority funds.

New York Mayor Michael Bloomberg and New York Gov. David Paterson said today they would like to see the project move forward, but were unwilling to commit city or state funds to it.

"It would be a great project for the region," Bloomberg said.

But, he added, "New York City does not have the money to put in."

Bloomberg and Paterson both lauded Christie for exercising fiscal responsibility, while at the same time recognizing the usefulness of the ARC project.

"Here you have a clash of responsible ideas," Paterson said.

As the tunnel deadline approaches, construction workers and civic groups have scheduled two events for today.

Between 7 and 8 a.m., U.S. Sen. Frank Lautenberg (D-N.J.) and other lawmakers are joining groups in handing out leaflets to commuters asking them to speak up in support of the tunnel project. Planned locations include NJ Transit stations at New Brunswick, Secaucus Junction, Princeton Junction, Newark Penn Station and Maplewood.

Then, at 11 a.m., at a tunnel construction site in North Bergen, construction workers are scheduled to join Lautenberg and U.S. Sen. Robert Menendez (D-N.J.) at a rally to tout the importance of the tunnel project to the struggling construction industry.

By Mike Frassinelli/The Star-Ledger and Sue K. Livio/Statehouse Bureau staff

Staff writer Steve Strunsky contributed to this report.


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