New Jersey Lt. Gov. Kim Guadagno is expected to "categorically deny" allegations Monday that she gave Hoboken's Mayor an ultimatum to support a redevelopment plan backed by Gov. Chris Christie in order to receive Hurricane Sandy recovery aid, a source said.

Guadagno's remarks will be the first time a senior Christie official has addressed the charges Hoboken Mayor Dawn Zimmer first made Saturday on MSNBC.

Zimmer went even further Sunday, implicating Christie directly in an interview on CNN.