PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Download our free eResource: Safety in Coatings Work.

Paint and Coatings Industry News

Main News Page


NJ to Pay $95M for Scrapped Tunnel

Thursday, October 6, 2011

More items for Program/Project Management

Comment | More

Payback may be hell, but some people finesse it better than others.

Take New Jersey Gov. Chris Christie.

The popular Republican has engineered a settlement by which the state will repay the federal government $95 million for a Hudson River tunnel project that Christie scrapped a year ago.

 NJ Governor Chris Christie

 State of New Jersey

Gov. Chris Christie noted that New Jersey settled for a “fraction” of the federal government’s demand.

Many hailed Christie as a fiscally righteous hero for killing the nine-mile Access to the Region’s Core (ARC) Tunnel, a project that he said could have dumped billions of dollars in cost overruns on New Jersey’s residents.

The problem: The federal government had already sunk $271 million into the project—and it wanted the money back.

Cash, Transit Requirements

After a year of negotiations, the U.S. Department of Transportation and New Jersey Transit have agreed that the state will repay $95 million over five years.

In addition, the settlement requires that New Jersey spend more than $128 million in federal Congestion Mitigation and Air Quality (CMAQ) Improvement Program funds on transit-related projects approved by DOT. The funds may not be used for other projects.

State and federal officials approved the plan Friday (Sept. 30); NJ Transit unanimously approved it this week.

‘Puts Taxpayers First’

In a prepared statement, Christie touted the agreement as a clear victory, saying it “puts the interests of New Jersey taxpayers first by substantially reducing the federal government’s original demand.”

He noted that the repayment sum “represents a fraction of the federal government’s initial claim.”

The transit agency will repay the $95 million from its capital fund, Paul Wyckoff, chief of Government and External Affairs, told the Asbury Park-Press. However, NJ Transit also expects to get back $143 million of the $160 million it paid for insurance on the project over eight years.

“There is money, including an insurance refund from the tunnel project self-insurance,” Wyckoff told the newspaper. “We bought it up front to save money, and we got a refund for the vast majority of it.”

Recovering those premiums involved months of wrangling with “the worldwide consortium of firms that underwrote ARC’s considerable risks,” reported northjersey.com. “In the end, officials said, the insurers were convinced that it was in their best interest to close a deal and keep good relations with the state.”

Out of Pocket

On the other hand, New Jersey has also spent $1.2 million on lawyers to fight the repayment request over the last year, the Park-Press reported. State taxpayers are also unlikely to recoup hundreds of millions of dollars spent on preliminary engineering, legal and other costs, said northjersey.com.

Last year, U.S. Transportation Secretary Ray LaHood called Christie’s decision to scuttle the project “particularly disappointing” and warned of “profound consequences” for New Jersey, New York “and the nation as a whole.”

 DOT Secretary Ray LaHood

 DOT

DOT Secretary Ray LaHood warned that scrapping the project would kill jobs and increase congestion in the Northeast.

This week, LaHood said the settlement would allow DOT “to recover all of the $51 million in New Starts money provided to New Jersey for the ARC Project, so that those funds can be made available to other communities for public transit projects.”

In addition, the federal treasury will recoup about half of the funds it provided to New Jersey under the American Recovery and Reinvestment (Stimulus) Act, he said.

In a statement, LaHood thanked New Jersey’s senators, Frank Lautenberg and Robert Menendez, for helping to broker a repayment agreement that is “good for the taxpayers of New Jersey, but also helps to improve infrastructure in the state,”

He added: “I thank the governor and his legal team for reaching this agreement.”

   

Tagged categories: Economic stimulus; Economy; Funding; Government; Infrastructure

Comment Join the Conversation:

Sign in to our community to add your comments.

SAFE Systems, Inc.
Portable Blast &
Recovery Equipment

Trailer or skid mounted blast and recovery equipment. Systems designed for maximum versatility, environmental compliance
and overall cost savings.
Call 1-800-634-7278


Armakleen Company, The
ARMEX when nondestructive cleaning is critical

The gentle physical propriety of baking soda but yet aggressive cleaning ability is what makes ARMEX the only choice for nondestructive abrasive blasting.


RPB Respiratory
SAVE TIME AND MONEY!

With 5 tear off lenses and an outer lens in place, RPB Safety’s new Nova 3 Cassette Lens System has been specifically designed to save you time and money.


International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment


    Carboline Company
    Hyrdrocarbon Fire & Jet Fire Protection

    Pyroclad X1 is the latest breakthrough in epoxy based intumescent fireproofing technology


    Absolute Equipment/Grand Rental Station
    Portable Power from Absolute Equipment

    •Compressors
    •Lighting Systems
    •Generators
    •Light Compaction
    Sales • Rental • Service
    Call 1-866-931-6655
    Over a century of
    providing excellence.


    Sidewinder/Persyst Enterprises, Inc.
    The Sidewinder Model M2 Solvent Recycler

    Combat the rising cost of gunwash, thinners, acetone & more while drastically reducing waste disposal coat.


    WINOA Group
    W Abrasives - Surf Prep Pack

    Experts in surface preparation are not working only on greens. To discover the SURF PREP PACK dedicated to experts, come to visit us during the GIFA (Hall15 - D14).


    Polygon
    POLYGON - Temporary Humidity Control

    We specialize in innovative climate control solutions for industrial painting, utilizing alternative energy sources and combining desiccants with heating or cooling.

  •  
     
     
    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker

     
    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
     

    © Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com