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http://www.nj.com/news/index.ssf/2010/10/hudson_river_tunnel_project_ma.html

N.J. Gov. Chris Christie agrees to reconsider Hudson River tunnel project

Published: Friday, October 08, 2010, 4:45 PM Updated: Friday, October 08, 2010, 6:25 PM

TRENTON — A day after Gov. Chris Christie axed the $8.7 billion Hudson River rail tunnel project over its soaring costs, a reprieve of sorts was granted.

Following a meeting in Trenton this afternoon with U.S. Transportation Secretary Ray LaHood, the governor agreed to take a second look at the project.

LaHood, in a statement, said, "Governor Christie and I had a good discussion this afternoon, during which I presented a number of options for continuing the ARC tunnel project. We agreed to put together a small working group from the U.S. Department of Transportation and the office of NJ Transit Executive Director Jim Weinstein that will review these options and provide a report to Governor Christie within two weeks."

Christie on Thursday said he was canceling the tunnel, known as Access to the Region's Core (ARC), because estimates had the project going anywhere from $2.3 billion to $5.3 million over budget.

"The fact that the ARC project is not financially viable and is expected to dramatically exceed its current budget remains unchanged," the governor said in a statement today.

"However, this afternoon Secretary LaHood presented several options to potentially salvage a trans Hudson tunnel project. At the secretary’s request, I’ve agreed to have executive director of NJ Transit Jim Weinstein and members from his team work with U.S. Department of Transportation staff to study those options over the next two weeks.”

At a news conference this afternoon following the stunning development, U.S. Sen. Frank Lautenberg (D-N.J.) said the governor and the U.S. Department of Transportation will come to the negotiating table to revive the tunnel project.


Andrew Mills/The Star-LedgerNew Jersey Gov. Chris Christie pauses during a statehouse news conference today where he announced he has killed a project to build a new rail tunnel beneath the Hudson River.
"We'll see if this is a change of heart or a change of timing," Lautenberg said. "Maybe we might just see a light at the end of the tunnel."

"It's a stay of execution for a very worthy project that's been put on death row," said Zoe Baldwin, the New Jersey advocate for the Tri-State Transportation Campaign.

State officials said the temporary hold does not mean a reversal of Christie's decision. They said the project is going to continue winding down. But the governor agreed to a two-week evaluation to look at various scenarios.

Christie had announced he was killing the project because New Jersey did not have the money to pay for added costs, as new reports showed the probability of continuing cost overruns. More than a half-billion dollars has already been spent on construction, engineering and land acquisition.

Federal lawmakers loudly protested that with the cancellation, the state would abandon $3 billion in federal funding earmarked for the project.

"New Jersey taxpayers don’t want to own a $600 million hole to nowhere," said U.S. Sen. Robert Menendez (D-N.J.) "They’d rather have a fully functioning tunnel that brings relief to their commutes, creates tens of thousands of jobs and is supported by a major, $3 billion investment from the federal government."

By Ted Sherman, Mike Frassinelli and David Giambusso/The Star-Ledger

Previous coverage:

• Democratic chairman files request for documents related to Gov. Christie's decision to end ARC tunnel

• Gov. Christie's decision to end tunnel project likely to enhance national image as cost cutter

• Timeline of events in Hudson River tunnel project

• E-mail, conversations allude to Gov. Christie's concerns about Hudson tunnel funding

• Gov. Chris Christie says no decision on Transportation Trust Fund, Hudson River rail tunnel

• N.J.-to-N.Y.C. rail tunnel project faces delays, report says

• Christie downplays talk of replenishing transportation trust fund with Hudson tunnel project money

• N.J. senators say cancellation of trans-Hudson tunnel project puts state in jeopardy


Eric D. Schwerin
Rosemont Seneca Partners, LLC
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(202) 333-1880
eschwerin@rosemontseneca.com
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