The Real Deal New York

Port Authority hub costing $900M

January 06, 2012 11:30AM

The Port Authority of New York & New Jersey’s Trade Center Transportation Hub is costing the financially-strapped agency close to $900 million, according to the New York Post, meaning drivers will likely pay higher bridge and tunnel tolls for years – perhaps decades – to come.

When announced in 2004, the Hub was slated to cost the Port Authority very little, but will now cost around $892 million, the Post said. The authority’s tab was originally supposed to be covered by a $1.92 billion grant from the Federal Transit Administration and $300 million the Port Authority had in Sept. 11 related insurance proceeds. Official cost estimates soon jumped beyond $2.5 billion however, even after cutbacks.

Further overruns are likely the Post said, especially if the insurance proceeds are revealed to have been diverted to other uses. [Post]