The Tunnel

[rusty charly]

The Turnpike Authority's $1.25 billion contribution is being watched most closely by Democrats who have accused the Christie administration of killing the tunnel project so that the turnpike's share could be used to stabilize the state's Transportation Trust Fund. Starting next year, all of the fund's revenue — generated by a gas tax — must go to pay off debt instead of funding highway projects.

http://www.northjersey.com/news/transportation/106746968_Defunct_tunnel_project_funds_up_for_grabs.html

[rusty charly]

1. An Amtrak VP has confirmed

that Amtrak is in talks with NJ Transit to salvage the largest infrastructure project in the country - ARC Tunnel - after Gov. Christie pulled the plug a few days ago. The plan could recycle NJ Transit's design, developed over many years of planning, engineering and environmental work, as part of Amtrak's first phase of a national high speed network. NJ Transit's already spent $500-$600 million of state and federal money on tunnel design, planning and securing environmental permits, in addition to construction work on an overpass to take Routes 1 & 9 over the tunnel mouth in North Bergen.

This confirms for the first time that a second set of rail tubes to join the 100-year-old single-track tunnels built by Pennsylvania Railroad are in Amtrak's Northeast Corridor High Speed Rail Plan. But besides the costs associated with delay, it looks like Christie's decision will still cost New Jersey big.

http://www.bluejersey.com/diary/17158/#59423

[JustAnotherGen]

2. Here's what I'm wondering

Cuomo and Bob Duffy take over Albany in January . . . What's to say the money doesn't come out of NYC and NY State makes it theirs? I still think we'd lose the 6K jobs it would have brought - but at least the folks that own businesses around the 'far end' (what would now be the New Jersey side) would probably still make money.

[rusty charly]

3. "By killing the ARC tunnel,

which was to cost at least $9.78 billion, New Jersey forfeited at least $3 billion in federal money for the project and possibly another $3 billion or more in Port Authority of New York and New Jersey money, although the state considers it money that should go to the New Jersey side of the Hudson. And today, the federal government sent a letter formally requesting that the state repay the $271 million in federal money it spent on the tunnel."

http://www.nj.com/news/index.ssf/2010/11/similar_hudson_river_tunnel_pr.html

[prodigals0n]

4. Christie Scrapping Tunnel Brings $5 Billion Wage Loss, Threatens Montclair

From Bloomberg News:

http://www.bloomberg.com/news/2010-11-03/christie-killing-new-york-tunnel-erases-wages-risks-montclair-property.html

Christie Scrapping Tunnel Brings $5 Billion Wage Loss, Threatens Montclair

"Governor Chris Christie cut off New Jersey from $5 billion in New York-based salaries and diminished its future role in the world’s second-largest regional economy, according to government data and former state Commerce Commissioner Gil Medina, by ending construction of a Hudson River rail tunnel he said taxpayers couldn’t afford.

...

Christie’s move means the state will have to repay the U.S. government $350 million already spent on the project, forgo $3 billion in additional federal aid and lose the 3,000 construction-worker openings the tunnel was projected to generate for the next decade. Canceling the tunnel will also cost New York and New Jersey 44,000 jobs and $4 billion in additional income that would have come through economic growth, according to a 2008 study by New Jersey Transit.

...

$18 Billion Increase

The Regional Plan Association, a New York research group that supported the tunnel, said home values within 2 miles (3.2 kilometers) of train stations on lines running into the project would have increased by $18 billion, generating $375 million in additional property-tax collections each year.

“Rail access increases demand and it increases prices,” Otteau said in a telephone interview. “If you build this project, it’s reasonable those communities expand.”

About 373,000 New Jersey residents already earn paychecks in New York, according to the New York State Department of Taxation and Finance. The typical New Jersey commuter was paid $205,000 in 2007, the last year for which New York has statistics."


Read more at the link.

[prodigals0n]

5. Amtrak ‘no longer interested’ in tunnel deal with NJ Transit

http://www.northjersey.com/news/Amtrak_no_longer_interested_in_tunnel_deal_with_NJ_Transit.html

Amtrak ‘no longer interested’ in tunnel deal with NJ Transit

"Talks between Amtrak and NJ Transit on any tunnel project are dead, Amtrak officials said late Thursday.

“We are no longer interested in this project,” said Vernae Graham, spokeswoman for the national rail agency.

“There were exploratory talks going on with NJ Transit,” Graham said “The talks have stopped. … That was commuter rail, and we are interested in intercity rail projects.”

...

The governor’s office did not respond to calls or e-mails for comment about Amtrak’s announcement.