New Jersey’s $271M Bill for Canceling ARC Arrives

The federal government wants its money back from New Jersey for the cancellation of the Access to the Region’s Core rail project. The day before Thanksgiving, the Federal Transit Administration sent NJ Transit a letter demanding repayment, within 30 days, of the $271 million in federal funds spent on the project.

The federal agency says it will charge interest on this claim if repayment is not made in time, may report the claim to credit and bond rating agencies, ask the Department of Justice to act as a collection agent, and as a last resort will garnish New Jersey’s future federal transportation funds.

[UPDATE: The Christie administration has hired Washington, D.C.-based law firm Patton Boggs to contest the bill.]

Full letter below (highlights added by TSTC):

7 Comments on "New Jersey’s $271M Bill for Canceling ARC Arrives"

  1. Clark Morris | November 30, 2010 at 7:49 pm |

    It looks like everyone concerned is afflicted with terminal stupidity. NJT gets the blame for having come up with a disaster of a plan. The federal government with AMTRAK and NJT should be shamed for not coming up with a replacement that could benefit both parties and take advantage of work already done (who, if anyone sabotaged the NJT AMTRAK talks?). The Regional Plan, TSTC and others helped push the planning fiasco instead of working for a useful and less costly alternative that provided additional tracks into Penn Station.

  2. Clark Morris | December 2, 2010 at 6:47 pm |

    Why isn’t the TSTC pushing for a combined Amtrak – NJT tunnel project that takes advantage of the Environmental Impact Statements already done? Why isn’t it urging revisiting the ideas on how to better use Penn Station including possible an East Side station for both the LIRR and NJT? Why isn’t TSTC urging better cooperation between the various division of the MTA and NJT?

  3. Stanley Mast | December 3, 2010 at 11:54 am |

    Let Christie figure this one out.

  4. Ah, our Great and Wonderful governor. Bullying New Jersey into permanent economic malaise and financial disaster. Way to go Gov; hope you stay outside the state campaigning. That way you’ll do less damage to our State. Better yet, follow Palin’s example: Resign and get yourself a “reality check”, er sorry, a “reality show”. Maybe you can call it [The Porky and Big Dufus Show].

  5. Richard Rabinowitz | December 3, 2010 at 2:00 pm |

    Because of this “cancellation”, Christie has to pay $271 million. His loss and his critics’ gain. Anyhow, since we already went through the motions of “cancelling” ARC, we ought to start over and design a better ARC at whatever location we please. Any suggestions as to how to finance and build the tunnel or bridge?

  6. ignorance is hard @work….

  7. Kevin Twine | December 4, 2010 at 8:36 pm |

    It’s now time to ask what will happen to Air Quality Conformity. The ARC project was forecasted to reduce vehicle trips by about 800,000 per year. That is a lot of exhaust. Ask the Gov how he plans to deal with that. BTW, if you flunk AQ Conformity, you won’t see a TIP for a long time. Smart guy, this Governor!

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