While the Port Authority deals with the fallout from Bridgegate, criticisms for lack of transparency, and potential sweeping reforms, a new hurdle has emerged for embattled agency.

Flickr User Dave Conner

On Thursday, Jersey City filed a lawsuit against the agency seeking $400 million.

Mayor Steven Fulop claims that figures come from unpaid taxes and penalties for 40 Port Authority properties in Jersey City.

An agency spokesman says the suit has no merit and they will fight the allegations.

Fulop, though, says the move was decided after months of unsubstantial talks.