NJ Must Pay $271M for Killed Tunnel: Feds - NBC New York

NJ Must Pay $271M for Killed Tunnel: Feds



    Under the Tucson Sun
    FILE - In this Oct. 19, 2010 file photo, a large rusty metal wall is seen in North Bergen, N.J., covering construction at the ARC Tunnel. The fate of the biggest public works project in the country _ a $9 billion-plus rail tunnel under the Hudson River _ appears to be sealed after officials said New Jersey Gov. Chris Christie was standing firm on his decision to kill it. (AP Photo/Mel Evans, File)

    NJ Transit owes the federal government $271 million for the Hudson River rail tunnel that Gov. Chris Christie scrapped last month and last week they got a bill demanding the money.

    An invoice from the Federal Transit Administration's chief financial officer to NJ Transit's executive director was sent Nov. 24. It says the amount of $271,101,291 is due within 30 days. The Associated Press obtained a copy of the correspondence Monday.

    The Federal Transit Administration has also said interest and penalty charges will be added.

    The $8.7 billion project to construct a rail tunnel between New Jersey and New York was 15 years in the making when New Jersey Gov. Chris Christie pulled the plug, citing cost overruns. 

    The previous tunnel would have been America's largest public works project, creating 6,000 construction jobs at a time U.S. employment is 9.6 percent.

    Officials aren't saying where NJ Transit will get the money to pay the bill.

    Meantime, on Monday, Amtrak said it was in preliminary talks with New Jersey's public transit agency to study new options for building a passenger rail tunnel between Manhattan and New Jersey.

    "We have been talking with them ever since the (previous) program was put in jeopardy," Cliff Cole, a spokesman for the U.S. national passenger railroad, told Reuters.