Updated

Gov. Chris Christie's administration is denying a New Jersey mayor's claims it withheld millions of dollars in Superstorm Sandy recovery grants because she refused to sign off on a politically connected development.

Hoboken Mayor Dawn Zimmer told The Associated Press that Christie's lieutenant governor and a top community development official told her recovery funds would flow if the commercial development went forward.

Zimmer said Lt. Gov. Kim Guadagno pulled her aside at a May event and told her "we are not going to be able to help you" unless the project moves forward.

Christie spokesman Colin Reed said the administration has been helping Hoboken secure assistance since Sandy struck, and that the governor and mayor have historically enjoyed a productive relationship.

Christie is embroiled in another scandal involving traffic jams apparently manufactured to settle a political score.

MSNBC first reported Zimmer's comments Saturday.

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