A new passenger-rail tunnel that will run under the Hudson River between New Jersey and New York could increase home values by $18 billion and generate $375 million of new property tax revenue for municipalities, a Regional Plan Association report released last week said.

The tunnel, called the Access to the Region’s Core, or ARC Tunnel, will offer a new rail connection between northern New Jersey and midtown Manhattan. New Jersey Transit began construction of the $8.7 billion tunnel in June 2009 and anticipates finishing the project in 2017.

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