N.Y. RAT Law § 45 — New York Code / Act RAT / Article 5 / Section 45
Extensions and additional lines
Status: in_force

§ 45. Extensions and additional lines. a. Whenever the board of\ntransportation shall determine that the public interests so require, it\nmay with the approval of the board of estimate and the mayor, without\nadvertising for proposals, but only after a public hearing under section\nthirty-four of this chapter, enter into a contract with the person\nowning, operating or agreeing to operate, any existing railroad for the\nconstruction, equipment, maintenance and operation, or for the\nequipment, maintenance and operation of any additional or proposed\nrailroad to be owned by the city for which necessary consents as\nprovided in section twenty-one of this chapter shall have been obtained,\nprovided that such proposed railroad shall be operated in conjunction\nwith such existing railroad for a single fare. Such contract for the\nequipment, maintenance and operation of such road or any portion thereof\nmay be made and entered into before consents shall have been obtained\ntherefor as provided in section twenty-one of this chapter. In such case\nsuch contract for equipment, maintenance and operation of such road or\nany portion thereof shall be upon condition that such contract shall not\nbecome operative or go into effect as to such road or such portion\nthereof unless and until the city shall acquire the right to construct\nsuch road or portion thereof by obtaining such consents.\n  b. Such contract for construction, equipment, maintenance and\noperation or for equipment, maintenance and operation may be made in\neither of the two following ways:\n  1. If such existing railroad be wholly or in part within the limits of\nthe city, such contract may be made under and pursuant to the provisions\nof sections thirty-one, forty, and forty-two, so far as such sections\nshall be applicable, with the railroad corporation owning or actually\noperating or agreeing to operate such existing railroad, but the term\nfor equipment, maintenance and operation of such proposed road, as\nspecified in such contract, pursuant to such sections, shall not be for\na period longer than the unexpired term of the franchise or contract for\nthe maintenance and operation of such existing railroad and any renewals\nprovided for in such franchise or contract.\n  2. If such existing railroad be a rapid transit railroad constructed\nwholly or in part at the public expense under the provisions of the\nrapid transit act or this chapter and wholly or in part in operation\nsuch contract may be made with the person having the contract for the\nconstruction and operation of such existing rapid transit railroad by\nthe terms of which such proposed rapid transit railroad if not\nconstructed or to be constructed by the board of transportation under\nseparate construction contracts shall be constructed as extra work under\nthe terms of such existing contract either without expense to the city\nor for such sum of money or such proportion of the actual cost thereof\nas may be agreed upon to be paid by such city for or toward the\nconstruction thereof, the railroad when so completed as extra work to be\nsubject to the terms and conditions of such original contract except so\nfar as shall be otherwise specified and agreed.\n  c. Every such contract for such construction, equipment, maintenance\nand operation or for such equipment, maintenance and operation of such\nproposed railroad made in either of the foregoing specified ways, shall\nalso make provision that the city, upon giving a specified notice, may\nterminate the contract for equipment, maintenance and operation of any\nsuch proposed railroad as to all and if deemed advisable as to any\nspecified portion thereof at any time after the expiration of ten years\nfrom the date when operation of any part of such proposed railroad or of\nsuch specified portion thereof shall actually begin, but such right of\ntermination of any such contract shall be upon condition as follows:\n  1. If the title to the equipment of such proposed railroad shall not\nbe vested in the city then that the equipment of the proposed railroad\nor portion thereof suitable to and used for the purposes of such\nrailroad as apportioned pursuant to the contract, shall be purchased and\ntaken by the city at an amount which shall be ascertained as provided in\nthe contract, but which shall not be greater than the actual cost\nthereof, plus fifteen per centum thereof, and such equipment, upon such\ntermination of such contract, shall become and be the property of the\ncity on paying to the contractor such amount. In case the title to the\nequipment of such proposed railroad shall be vested in the city then\nthat the city shall pay to the contractor an amount for his investment\nin the equipment of such proposed railroad, or portion thereof, which\nshall not exceed the actual cost to the contractor of equipment of such\nrailroad or portion, plus fifteen per centum thereof, and shall decrease\nunder provisions of the contract as the term thereof continues so that\nat the end of the full term of the contract no such amount shall be paid\nexcept that if additional equipment shall be required and supplied after\nthe railroad, or portion thereof, shall have been put in operation, and\nif the contract shall provide that title to such additional equipment\nshall vest in the city when supplied, then the city shall pay an amount\nfor the investment of the contractor in such additional equipment which\namount shall not exceed the actual cost to the contractor of such\nadditional equipment plus fifteen percentum thereof and shall diminish\nso that at the end of the full term of the contract the city shall be\nrequired to pay for such investment in additional equipment only such\namount as shall be provided in such contract.\n  2. Upon the further condition if such proposed railroad shall be\nconstructed wholly or in part at the cost of the contractor that the\ncity shall also pay to the contractor an amount for his investment in\nthe construction of such proposed road or portion thereof, which shall\nnot exceed the actual cost to the contractor of constructing such road\nor portion, plus fifteen per centum thereof, and shall decrease under\nprovisions of the contract as the term thereof continues so that at the\nend of the full term of the contract no such amount shall be paid,\nexcept that if betterments, additions or improvements shall be required\nby the board of transportation or approved by such board prior to the\nconstruction thereof and be constructed wholly or in part at the cost of\nthe contractor, then that the city shall pay an amount for the\ninvestment of the contractor in such betterments, additions or\nimprovements which shall not exceed the actual cost to the contractor of\nconstructing such betterments, additions or improvements plus fifteen\nper centum thereof and which amount shall diminish so that at the end of\nthe full term of the contract the city shall be required to pay for such\ninvestment in betterments, additions or improvements only such amount as\nshall be provided in the contract.\n  d. The contract shall provide a method of ascertaining the amount to\nbe paid for such equipment and for the investment of the contractor in\nthe construction of such proposed road upon a termination by the city of\nsuch contract and for the equipment of such proposed railroad at the end\nof the full term of the contract. The contract may provide for\ndetermining from time to time, in default of agreement, by arbitration\nor by the court, a valuation of such investment of the contractor in the\nconstruction of such proposed road and of the equipment or any part or\nportion of either thereof for any purpose under such contract. The\ncontract may provide that the title to the equipment as well as to such\nroad shall vest in the city from the beginning and that the amount to be\npaid by the city for the investment of the contractor in such equipment\nshall decrease as the terms of the contract continues so that at the end\nof the full term of the contract no amount shall be payable therefor\nexcept for additional equipment as aforesaid. The contract shall provide\nthat upon the expiration of the term fixed in the contract, the contract\nshall end without compensation to the contractor except as provided in\nthe contract, for betterments, additions or improvements to any such\nrailroad required to be made or approved by the board of transportation\nprior to the construction thereof during the term of any such contract,\nand, if the title to the equipment be not vested in the city, for\nequipment suitable to and used for the purposes of such contract to the\namount, if any, ascertained as provided in the contract, and that in\nsuch event such equipment shall become the property of the city upon\npayment to the contractor of such amount, or, if the title to the\nequipment be vested in the city, then an amount for the investment of\nthe contractor in additional equipment for any such railroad to be\nascertained as provided in the contract.\n  e. The contract also may include a provision for modification of the\nlease or contract for equipment, maintenance and operation of such\nexisting railroad so that such latter lease or contract may be\nterminated by the city upon giving a specified notice at the same time\nand in connection with the termination of the contract as to such\nproposed railroad, but such right of termination of any such contract as\nto such existing railroad shall be upon condition:\n  1. That the equipment of such railroad suitable to and used for the\npurposes of such contract shall be purchased and taken by the city at an\namount which shall be ascertained as provided in the contract, but shall\nnot be greater than the actual cost thereof plus fifteen per centum\nthereof, and such equipment, upon such termination of such contract,\nshall become and be the property of the city on paying to the contractor\nsuch amount, or\n  2. Upon the further condition, if such existing railroad shall have\nbeen constructed wholly or in part at the cost of the contractor, that\nthe city also shall pay to the contractor or to his assignee in\npossession an amount for the investment in the construction of such\nexisting road which shall not exceed the actual cost to the contractor\nof constructing such road plus fifteen per centum thereof, and shall\ndecrease under the provisions of the contract as the term thereof\ncontinues, so that at the end of the full term of the contract, and of\nany renewal thereof contained therein, no such amount shall be paid.\n  The contract as so modified shall provide a method of ascertaining the\namount to be paid for such equipment and for the investment of the\ncontractor in the construction of such road upon a termination by the\ncity of such contract, and for the equipment of such existing railroad\nat the end of the full term of the contract. Such contract as so\nmodified may provide for determining from time to time, in default of\nagreement, by arbitration or by the court, a valuation of such\ninvestment of the contractor in the construction of such road and of the\nequipment, or any part or portion of either thereof, for any purpose\nunder such contract. The contract also may provide for assuring that in\ncase a new contract for equipment, and for maintenance and operation of\nsuch existing railroad, or proposed railroad, is made after such\ntermination, pursuant to notice, or after the expiration of the full\nterm of such contract, that the title to and possession of the equipment\nso taken and the right to the possession of the railroad so constructed\nmay be transferred directly to the new contractor upon his paying the\namount so required.\n