The Gateway Development Commission (GDC) Board of Commissioners took several notable actions during its Aug. 1 meeting.

At the top, GDC awarded a $465 million contract to Schiavone Dragados Lane JV for the Palisades Tunnel Project. The work will construct the first mile of twin tunnels on the New Jersey side of the Hudson River. It marks GDC’s first awarded tunnel boring contract for the broader Hudson Tunnel Project (HTP).

The contract was awarded following a publicly advertised bidding process as well as an evaluation and review by project stakeholders. In addition to the total contract price, the award includes an additional 5% of that $465 million for contingencies.

The Palisades Tunnel Project includes boring two tunnels – nearly 5,100 feet long each with an inside diameter of 25 feet and 2 inches – and six cross passages, as well as furnishing and installing a concrete tunnel lining with waterproofing membrane. It also involves building the new Hudson County Shaft. When digging is completed, the shaft will provide passage to remove the tunnel boring machines.

Work on this phase is expected to begin in the coming months with completion anticipated in 2027.

A head start

In another key move, the board also approved the authorization of a Notice to Proceed for Phase Two of the Hudson River Ground Stabilization (HRGS) Project, the first heavy construction project of the HTP.

The project involves injecting a mix of soil, concrete and water into the riverbed in 1,200 feet of shallow area on the Manhattan side of the Hudson River. The work will ensure the tunnel boring machines can excavate the new tunnel and protect the riverbed from disruption. In February, the GDC board awarded the contract for the HRGS Project to Weeks Marine Inc.

Phase One began in May and is expected to conclude this fall. Completion of Phase Two is in 2027.

New hire

The board also approved the hiring of William Fletcher as inspector general. Fletcher will serve a number of functions for the GDC, such as reviewing policies and processes as well as recommending enhancements and preventative measures to minimize potential misconduct. He’ll also investigate complaints pertaining to fraud, waste and abuse; manage the GDC’s whistleblower access and assistance program; and more.

“When we signed the full funding grant agreement for the Hudson Tunnel Project in July, we said that construction would ramp up quickly. Today we are following through on that commitment with dramatic steps forward for our first heavy construction and tunnel boring projects,” said Alicia Glen, New York GDC commissioner and co-chair; Balpreet Grewal-Virk, New Jersey GDC commissioner and co-chair; and Tony Coscia, GDC Amtrak commissioner and vice chair, in a joint statement. “Advancing both of these projects is a major step in the construction phase of the HTP, and we will maintain the disciplined process that enabled this achievement.”

“Securing full funding for the Hudson Tunnel Project brought us to the point of no turning back. With the Board’s actions today, we complete the transition from planning this tunnel to building it – and we could not be off to a stronger start,” said GDC Chief Executive Officer Kris Kolluri. “I am thankful for our many partners in Washington, New York and New Jersey who have worked with us to get to this point and for the GDC team whose hard work enabled us to lock in these contracts on time and within budget.”

With the Board’s actions today, we complete the transition from planning this tunnel to building it – and we could not be off to a stronger start.
– Kris Kolluri, Gateway Development Commission CEO

Kolluri extends stay

As NJBIZ reported July 18, Kolluri made a surprising announcement he would step down from his role with GDC and overseeing the $16 billion HTP. He submitted his resignation in a letter to GDC commissioners, with a last day of Aug. 16.

At the outset of Thursday’s meeting, the board offered a bit of an update about the situation.

“Prior to beginning, I wanted to provide a brief update on GDC leadership. The Board has begun a process for a CEO search to ensure GDC continues to have world-class leadership and builds on the incredible success and momentum of the last two years,” said Grewal-Virk. “We’ve been meeting among the co-chairs and having discussions with our board members – to ensure, obviously, the continuity of this process.”

Grewal-Virk then announced that Kolluri agreed to remain in his role for an additional 60 days.

“Kris has been an incredible leader whose work has built an organization and partnership that will last with dedication, fairness, and unwavering commitment,” she said. “His efforts have brought us to the point of no turning back on the nation’s most imperative and important infrastructure project. We are grateful he will be here as we complete the transition from planning to building. And we look forward to welcoming a new CEO in the near future to complete that work. Thank you, Kris, for staying on a bit longer.”

Transitioning

Kolluri thanked the board, his colleagues, and the project stakeholders for their support of him and his team over the last two years.

“I am grateful to have had this opportunity. When I turned in my resignation – I did so only because I believed it was the right time for me to leave,” said Kolluri, noting the organization had hit every objective it laid out. “The team we have built can not only function – but do extraordinary things – as evidenced by the fact that 23 days after signing the full funding grant agreement, you are about to consider voting on the first tunnel contract. That doesn’t happen because of one person. It happens because you have an extraordinary team around you. And that is what I’ve had the privilege of overseeing.”

Kolluri said that while he is looking forward to the next stage of his life, he stressed how much he cared about the GDC and the people that make up the organization.

“The fact that I can help, as I promised, during this transition – to make sure it’s a smooth transition and a transition that is reflective of GDC’s best values, which is we always watch for each other; make sure that, ultimately, nothing ever happens to the project or this organization,” said Kolluri. “That is the commitment I made to you my first day. That is the commitment I’m making to you today. And I’m grateful that I can be part of the transition – and thank you so much for that.”