October 11, 2011

Final Tally for Canceled Tunnel Nearly $600 Million

Posted by Anthony F. Della Pelle under In the news | Tags: , , , , , , |
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Courtesy of NJ.com

Nearly $600 million was spent before New Jersey Governor Chris Christie cancelled the ARC Tunnel Project last fall.  Only $22 million was spent on actually constructing the project, with the majority of funds going to engineers and consultants.  The remainder was spent on real estate related costs like eminent domain suits and negotiating with property owners.  Last week a deal was negotiated between New Jersey and the Federal government that limited New Jersey’s liability for the project to $95 million which will be paid in installments until 2014. 

 The idea of a new tunnel has been around since the 1920’s.  Serious investigations into making the ARC project a reality began in the 1990’s, and a new Amtrak project was discussed last fall after the ARC project was cancelled.

 For more on this story from The Record, click here.

 For more media coverage on the Amtrak Gateway project, please see the following:

 Christie is ‘thrilled’ with Gateway tunnel proposal, takes credit for billions saved by canceling ARC tunnel (Star-Ledger)

 Plan for $13.5B NJ-NY rail link (New York Post)

 Gov. Christie, Democratic U.S. senators scramble to take credit for Gateway tunnel project (Star-Ledger)

 For previous blog posts on the cancelled ARC Tunnel project, please see the following:

 ARC Tunnel Costs Continue to Mount

 Governor Christie Kills ARC Tunnel Project, Again

 Arc Tunnel:  Back From the Dead?

 The author wishes to acknowledge the assistance of Cory K. Kestner, Esq., of McKirdy & Riskin, PA, in the preparation of this article.

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April 25, 2011

New Jersey Lawmakers Adopt Measure to Protect Developers

Posted by Anthony F. Della Pelle under In the news, Legislative Developments | Tags: , , , , |
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New “Time of Application” Law Prohibits Municipalities from Rezoning During Development Application Process

 New Jersey’s Legislature has revised the Municipal Land Use Law to remove the ability of municipalities to revise zoning codes in an effort to thwart development applications the municipality opposes but which otherwise comply with local zoning laws.  Previously, it was not unusual for a developer to expend significant resources (money and time) to complete its development application for a construction project based on the applicable zoning, only to have a municipality modify zoning in the area after the application was filed but before it was approved.  The application would be denied, and the developer would be forced to walk away from the project or to expend more resources seeking a variance for a project to which the municipality was clearly opposed.  The revised rule now binds a municipality to the zoning in effect at the time a development application is submitted by a developer.  However, developers must still be wary because a municipality will not be bound by the submission of an informal site plan review.

 The new rule may be important to property owners in condemnation cases because a municipality would not be permitted to downzone a property with a pending development application in anticipation of condemning the property and seeking a lower highest and best use.

 A copy of the original legislation may be viewed by clicking here.

 A copy of the new law may be viewed by clicking here.

 A press release on the legislation from Governor Chris Christie’s Office may be viewed by clicking here.

 The author wishes to acknowledge the assistance of Cory K. Kestner, Esq., of McKirdy & Riskin, PA, in the preparation of this article.

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February 13, 2011

New Jersey Back on Board with New “Gateway Tunnel” Project?

Posted by Anthony F. Della Pelle under In the news | Tags: , , , , , |
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Amtrak announced it will spend $50 million to study a new Hudson River tunnel project expected to cost $13.5 billion.  The two-tunnel “Gateway” project was fast-tracked after New Jersey Gov. Chris Christie canceled a similar rail project last fall.  New Jersey’s two United States Senators attended the announcement, and Governor Christie was thrilled that New Jersey will now be getting a tunnel project not financed by New Jersey’s residents.  The project will require the expansion of Penn Station in New York, and the acquisition of several properties in that neighborhood.  It is unclear what will happen with the properties in New Jersey that New Jersey Transit acquired before the ARC project was cancelled.  What new takings may occur in New Jersey will also remain unclear until Amtrak completes its preliminary study.

 

For more media coverage on the new Gateway project, please see the following:

 

Amtrak, NJ senators propose new Hudson rail tunnel (Wall Street Journal)

 

With One Plan for a Hudson Tunnel Dead, Senators Offer Another Option (New York Times)

 

Christie is ‘thrilled’ with Gateway tunnel proposal, takes credit for billions saved by canceling ARC tunnel (Star-Ledger)

 

Plan for $13.5B NJ-NY rail link (New York Post)

 

Gov. Christie, Democratic U.S. senators scramble to take credit for Gateway tunnel project (Star-Ledger)

 

For previous blog posts on the cancelled ARC Tunnel project, please see the following:

 

ARC Tunnel Costs Continue to Mount

 

Governor Christie Kills ARC Tunnel Project, Again

 

Arc Tunnel:  Back From the Dead?

 

The author wishes to acknowledge the assistance of Cory K. Kestner, Esq., of McKirdy & Riskin, PA, in the preparation of this article.

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October 27, 2010

Governor Christie Kills ARC Tunnel Project, Again

Posted by Anthony F. Della Pelle under In the news | Tags: , , , , , |
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New Jersey Governor Chris Christie has announced that the trans-Hudson ARC Tunnel project will remain canceled, after agreeing to take another look at its fiscal impact upon urging from federal transportation officials.  The project would have added a second commuter rail tunnel and line between the Frank Lautenberg rail station in Secaucus and a new terminal in Manhattan, but is now history due to the Governor’s conclusion that cost overruns would cost New Jersey tax payers billions that New Jersey did not have available and could not afford.  While many suspected that additional funding might be provided from other sources, the Governor’s decision appears to have been largely based upon New Jersey’s sole responsibility for the cost overruns.

For more on this story, read Mike Frassinelli’s article in today’s Star-Ledger.

Stay tuned for more to follow.

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October 11, 2010

ARC Tunnel: Back From the Dead?

Posted by Anthony F. Della Pelle under In the news | Tags: , , , , |
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Hours after Governor Chris Christie‘s announcement that the trans-Hudson ARC Tunnel project was dead, federal transportation officials traveled to Trenton to urge the Governor to reconsider, and to give some thought to alternatives that would keep the project alive. 

Last Thursday, Governor Christie killed the nation’s largest public works project based upon the unanimous recommendation of an Executive Steering Committee including high-ranking officials at New Jersey Transit and the Port Authority of New York and New Jersey.  The project cancellation resulted from the Steering Committee’s conclusion that the project — which has been in planning for many years and commenced property acquisitions and construction last year – could have cost overruns exceeding $5 billion, all of which would need to be shouldered by New Jersey taxpayers according to the project’s current financial structure.  That was when U.S. Transportation Secretary Ray LaHood got on the phone and made arrangements to travel to Trenton on Friday.

The meeting resulted in Christie agreeing to provide LaHood with 14 days to come up with alternatives which might allow the project, or some other solutions, to be implemented or revived.

For more, read the account of Josh Margolin and Ted Sherman in yesterday’s NorthJersey.com.

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October 7, 2010

Trans Hudson Tunnel Project Canceled By Governor Christie

Posted by Anthony F. Della Pelle under In the news | Tags: , , , |
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New Jersey Governor Chris Christie today canceled the multi-billion dollar “ARC” Hudson River commuter train tunnel — America’s largest public works project.  This action follows a moratorium which had been imposed on the project to study its fiscal impact.

Governor Christie stated that the tunnel project costs “far more than New Jersey taxpayers can afford and the only prudent move is to end this project.”  New Jersey Transit Executive Director James Weinstein issued a statement which recognized the importance and value of the project, but noted that “the current economic climate in New Jersey simply does not allow for this project to continue considering the substantial additional costs that are required.”

More information is available in today’s article in the Star-Ledger, or Patrick McGeehan’s  article in today’s New York Times.

A copy of the ARC Executive Steering Committee’s memorandum containing its recommendations to Governor Christie is available here.

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October 6, 2010

New Jersey Road, Rail Projects Suspended

Posted by Anthony F. Della Pelle under In the news, Legislative Developments | Tags: , , , , |
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The New Jersey Department of Transportation has suspended approximately 100 state-funded road and rail projects in their early stages while the State contemplates how it will finance needed infrastructure improvements in the future. 

This announcement follows yesterday’s resumption of work resumed on many transportation projects that NJDOT Commissioner James Simpson had ordered stopped last Friday.  According to Simpson, the original stoppage was due to the State Legislature’s failure to approve a bond sale to fund previously authorized work.  Many of those projects after lawmakers approved a $1.25 billion bond sale yesterday in order to keep the work funded through spring.

The projects that were put on hold by Simpson on Tuesday are in the early phases of planning and development, and the department will now be assessing the costs and benefits of proceeding with each project.  The Christie administration has indicated that it will be proposing solutions for a long-term fix for the New Jersey Transportation Trust Fund Authority, the State funding source for transportation projects which is nearly depleted.

For more on the halt of the state-funded transportation projects, read this article by Mike Frassinelli in the Star Ledger , or Angela Delli Santi’s article from the Associated Press.

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