REPORT OF GIBSON, DUNN & CRUTCHER LLP CONCERNING ITS INVESTIGATION ON BEHALF OF THE OFFICE OF THE GOVERNOR OF NEW JERSEY INTO ALLEGATIONS REGARDING THE GEORGE WASHINGTON BRIDGE LANE REALIGNMENT AND SUPERSTORM SANDY AID TO THE CITY OF HOBOKEN March 26, 2014 www.GDCReport.com TABLE OF CONTENTS Page I. EXECUTIVE SUMMARY .......................................................................................................1 A. George Washington Bridge Toll Lane Realignment At Fort Lee ..................................1 1. The Participants In This Act ..............................................................................2 2. The Role Of The Governor ..............................................................................10 3. The Role Of The Governor’s Senior Staff, Besides Bridget Kelly ..................11 4. Conclusion .......................................................................................................12 B. Hoboken Mayor Dawn Zimmer’s Allegations Concerning Sandy Aid .......................12 1. Mayor Zimmer’s Specific Allegations .............................................................13 a. Mayor Zimmer’s Exchange With Lieutenant Governor Guadagno ..........14 b. Mayor Zimmer’s Exchange With DCA Commissioner Constable ............16 c. Mayor Zimmer’s Exchange With GORR Executive Director Ferzan .......18 2. Other Factors Bearing On Mayor Zimmer’s Allegations ................................21 a. Scope Of The Conspiracy Alleged And Inability To Carry It Out ............21 b. Mayor Zimmer’s Changing Account Over Time.......................................22 c. Mayor Zimmer’s Mischaracterization Of The Rockefeller Group’s Role ............................................................................................................22 d. Lack Of Substantiation For Mayor Zimmer’s Claims ...............................23 3. Conclusion .......................................................................................................24 C. Recommendations ........................................................................................................24 1. Governor’s Office ............................................................................................25 2. Port Authority ..................................................................................................26 3. Other Related Proposals ...................................................................................28 II. SCOPE AND METHODOLOGY OF THE INVESTIGATION .............................................30 A. Issues ............................................................................................................................30 1. Allegations Regarding The George Washington Bridge Lane Realignment .....................................................................................................30 a. Inquiries Concerning The Bridge Lane Realignment ................................31 b. Creation Of The New Jersey Select Committees Of Investigation ............32 c. The U.S. Attorney’s Office For The District Of New Jersey ....................34 2. Mayor Dawn Zimmer’s Allegations Regarding Superstorm Sandy Aid For Hoboken, New Jersey ................................................................................34 i TABLE OF CONTENTS (continued) Page B. Retention Of Gibson, Dunn & Crutcher LLP ..............................................................35 1. Purpose And Scope ..........................................................................................35 2. Work Performed ...............................................................................................38 C. Key Members Of Gibson Dunn’s Investigation Team ................................................39 III. OVERVIEW OF THE OFFICE OF THE GOVERNOR ........................................................42 A. Chief Of Staff ...............................................................................................................42 B. Counsel’s Office ..........................................................................................................43 C. Office Of Legislative And Intergovernmental Affairs .................................................43 D. Governor’s Office Of Recovery And Rebuilding ........................................................44 IV. FINDINGS OF FACT: THE GEORGE WASHINGTON BRIDGE LANE REALIGNMENT .....................................................................................................................45 A. Background On The George Washington Bridge And The Port Authority Of New York And New Jersey .........................................................................................45 B. Background On The Christie Re-Election Campaign, IGA, And Mayor Sokolich’s March 2013 Decision Not To Endorse Governor Christie ........................50 C. In-Depth Fact Chronology ...........................................................................................52 1. July–September 2013: Events Preceding The Lane Realignment ..................53 a. Summer 2013: Port Authority Preparation For The Lane Realignment ..53 b. August 2013: Wildstein And Kelly Communicate About The Lane Realignment ...............................................................................................54 c. September 6–8, 2013: Weekend Before The Lane Realignment ..............56 2. September 9–13, 2013: Implementation Of The Lane Realignment ..............59 a. Day One: Monday, September 9, 2013 .....................................................59 b. Day Two: Tuesday, September 10, 2013 ..................................................62 c. Day Three: Wednesday, September 11, 2013 ...........................................64 d. Day Four: Thursday, September 12, 2013 ................................................65 e. Night Four And Into Day Five: Friday, September 13, 2013 – Foye Reverses Lane Realignment .......................................................................67 ii TABLE OF CONTENTS (continued) Page 3. September 14, 2013–January 8, 2014: Aftermath Of The Lane Realignment .....................................................................................................71 a. September 14–19, 2013: Outside Scrutiny And Communications With Mayor Sokolich ..........................................................................................71 b. October 1, 2013: Second Wall Street Journal Article ...............................75 c. October–November 2013: Ongoing Legislative And Media Inquiries.....78 d. November 25, 2013: Baroni Testifies Before The Assembly Committee ..................................................................................................82 e. December 2, 2013: Governor’s First Press Conference ............................86 f. December 4, 2013: Wildstein And Drewniak Have Dinner .....................87 g. December 5–6, 2013: Wildstein’s Resignation ........................................89 h. December 9, 2013: Foye And Other Port Authority Officials Testify Before The Assembly Committee ..............................................................91 i. The Week Of December 9–13, 2013: Investigations Of The Lane Realignment Expand ..................................................................................92 j. December 12, 2013: Gramiccioni Communicates With Baroni ...............93 k. December 12, 2013: The Governor And O’Dowd Make Further Inquiries .....................................................................................................94 l. December 12, 2013: Kelly Calls Renna And Asks Her To Delete A Relevant Email ...........................................................................................96 m. December 13, 2013: The Governor Convenes A Special Morning Senior Staff Meeting ..................................................................................97 n. December 13, 2013: Governor Christie’s Press Conference ..................101 o. January 8, 2014: Revelation Of Kelly’s Involvement ............................103 p. January 9, 2014: Governor Christie’s Press Conference ........................104 q. January 9, 2014: Wildstein’s Testimony ................................................105 D. Factual Analysis of the Bridge Lane Realignment: Findings Regarding Participation, Knowledge, and Motive ......................................................................105 1. Individuals Involved In The Lane Realignment: Wildstein, Kelly, Stepien, And Baroni .......................................................................................107 a. Wildstein’s Conduct, Knowledge, And Motive .......................................107 b. Kelly’s Conduct, Knowledge, And Motive .............................................110 iii TABLE OF CONTENTS (continued) Page c. Stepien’s Conduct, Knowledge, And Motive ..........................................115 d. Baroni’s Conduct, Knowledge, And Motive ...........................................118 2. No One In The Office Of The Governor Other Than Kelly Had Any Advance Knowledge Of The Lane Realignment Or Was Otherwise Involved In Approving It ...............................................................................120 a. Before September 9, 2013, No One Else In The Governor’s Office Besides Kelly Knew About the Lane Realignment .................................120 b. Between September 9 And 13, 2013, Some Governor’s Office Employees Became Aware Of The Lane Realignment But Understood It To Be A Port Authority Traffic Study ..................................................121