ARC Tunnel Scrapped - Absolutely, States NJ Governor

Time will tell whether this was a shrewd political move, saving the state billions of dollars, or a monumental failure of judgment. NJ must now repay the federal government $270 million; he forfeits $6 billion in transit, but prevents overrun costs.

1 minute read

October 28, 2010, 11:00 AM PDT

By Irvin Dawid

The overrun costs on the $8.7 billion Access to the Region's Core Hudson River rail tunnels project could have been considerable - and DOT Secretary LaHood offered no assurance of help.

"In the end my decision has not changed," Mr. Christie told reporters in Trenton Wednesday. "I cannot place upon the citizens of New Jersey an open letter of credit. What proponents are asking me to do is hand over a blank check. I simply will not do that."

"He called the decision final and said there "is no opportunity for reconsideration." The decision followed an "honest and frank" discussion with Mr. LaHood, he said."

After initially stopping the project, Gov. Christie agreed to reconsider his decision after he conferred with Secretary LaHood for two weeks.

Thanks to Crain's News Alerts

FULL STORY: Christie sticking with decision to scrap NJ/NY rail tunnel

Wednesday, October 27, 2010 in Bloomberg News via Crain's New York Business

Transportation New Jersey ARC Gov. Christie Rail Tunnels

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