N.Y. RAT Law § 81 — New York Code / Act RAT / Article 7 / Section 81
Connection with other railroads or transit facilities
Status: in_force

§ 81. Connection with other railroads or transit facilities.  a. The\ncommission, from time to time, with the approval of the board of\nestimate and the mayor, upon application of any person owning, leasing,\nconstructing or actually operating or having the right by contract to\nthereafter operate a railroad wholly or in part within the limits of the\ncity, if in the judgment of such commission, the public interests so\ndemand, may also fix and determine the route by which any such person\nmay connect with other railroads, or the stations thereof, or with\nferries or bridges, or may extend any line which he operates or has the\nright to operate as aforesaid within such city, or upon the application\nof a corporation organized under the railroad law for any of the\npurposes specified in subdivision 1 of section forty of this chapter,\nand agreeing to equip, maintain and operate or to procure to be\nequipped, maintained and operated, any road of the city in connection\nwith any existing railroad of a railroad corporation and any extension\nthereof wholly within such city, on the basis of a division of income,\nearnings or profits as herein provided, the commission with like\napproval, if in its judgment the public interests so demand, may fix and\ndetermine the route by which such person may construct, maintain and\noperate such extension, and with like approval, may authorize such\nperson to construct, maintain and operate any such extension, and may\nwith like approval authorize any such person to lay an additional track\non, above, under or contiguous to a portion or the whole of the route of\nhis railroad within such city and to acquire terminal or other\nfacilities necessary for the accommodation of the traveling public on\nany street except the place known as Battery Park on which such railroad\nshall be located.  The commission, with like approval, may also\nauthorize any such person to lay his tracks and operate his railroad to\nany terminal within such city, and to transport thereover passengers or\nfreight or both, and to run either passenger trains or freight trains or\nmixed trains thereover.  The commission, with like approval, shall fix\nand determine the locations and plans of construction of the railroads\nupon such facilities, the times within which they shall be respectively\nconstructed, the compensation to be made therefor to the city by such\nperson, and such other terms, conditions and requirements as to such\ncommission and board of estimate with the approval of the mayor may\nappear just and proper.  Every such determination, authorization and\nlicense shall be made upon the condition that such person, from the time\nof the commencement of the operation of any such railroad under such\ndetermination, authorization or license, shall annually pay to such city\na sum or rental which may be a part or proportion of gross or net\nreceipts, and that the amount of such sum or rental for a period of not\nmore than twenty-five years, beginning with such operation of any such\nrailroad shall be prescribed by the commission in such determination,\nauthorization and license, and that every such determination,\nauthorization and license shall provide for the readjustment of the\namount of such sum or rental at the expiration of the period for which\nit shall be so prescribed and for readjustment from time to time in the\nfuture, to the end of the period of renewal, if any, of the amount of\nsuch annual payment at intervals each of not more than twenty years.\nSuch determination, authorization or license may provide that for the\nwhole or any portion of the life of the grant in lieu of such annual\nrental the gross or net receipts derived from the operation of such\nrailroad owned, operated or to be operated by such person within the\nlimits of such city, and from the operation of such connecting or\nextending facilities may be combined, and that the city may receive as\nsuch compensation at intervals named a specified part or proportion of\nthe income, earnings or profits of the railroad, and the facilities\nwhose receipts are so combined or of those and any other railroads which\nmay be operated in connection therewith in like manner, which part or\nproportion may be deferred to a previous distribution to such person,\nwhich distribution may be cumulative. In such case such determination,\nauthorization or license may apportion out of the amount so to be\nreceived by the city and shall specify a portion thereof which shall be\ndeemed to be the rental for the use of such facilities. Such\ndetermination, authorization or license shall also provide for\ndetermining the amount of the income, earnings or profits of the\nrailroad within the limits of the city and of the facilities whose\nreceipts are so combined. It may also provide for readjustment of the\nproportion which the city shall receive or of the portion thereof which\nshall be deemed to be the rental for the use of such facilities at\nspecified intervals. In addition, it may prescribe a method of\ndetermining by arbitration or by the court the amount which the city\nshall receive as its proportion of such income, earnings or profits or\nas such rental upon any such readjustment thereof. Such determination,\nauthorization or license shall contain a reservation to the city of the\nprivilege, upon giving a specified notice, to terminate the franchise,\nright or authority granted under this section as to all, and, if deemed\nadvisable, as to any specified portion of such facilities, and to\npurchase and take the plant and property as defined in the grant at any\ntime after the expiration of ten years from the date when operation of\nany part of such facilities or of such specified portion thereof shall\nactually begin, upon paying an amount for such plant and property as\nproperty, excluding any value for the franchise, right or authority,\nwhich amount shall not exceed actual cost as defined in the grant of\nsuch plant and property plus fifteen per centum thereof.  Such amount\nshall decrease under provisions of the grant as the franchise continues,\nso that at the end of the full term of the grant or at the end of a\nperiod specified therein, no amount shall be paid except for\nbetterments, additions, improvements and additional equipment as\nhereinafter provided. The grant shall provide a method of ascertaining\nthe amount to be paid for such plant and property on termination by the\ncity of such franchise, right or authority and for the betterments,\nadditions, improvements and additional equipment at the end of the full\nterm of the grant. The grant may provide for determining, from time to\ntime in default of agreement by arbitration or by the court, a valuation\nof such plant and property or any part or portion thereof for any\npurpose under such grant. Such determination, authorization or license\nmay also make suitable provision to the end that if the city, after so\nterminating such franchise, right or authority or at the end of the full\nterm of the grant shall propose to give a new franchise, right or\nauthority in the enjoyment of which such plant and property or any part\nthereof may be utilized, the title to and possession of such plant and\nproperty or any part thereof may be transferred directly to the grantee\nof any such new franchise, right or authority when such new grantee\nshall pay the amount so required. In the case of additional track added\nto any elevated rapid transit railroad, however, the determination,\nauthorization or license may provide that such privilege of the city to\nterminate the franchise, right or authority therefor and to purchase and\ntake the plant and property shall not be for railroad transit operation\neither by the city or by any other party, and shall be without prejudice\nto the rights of such person in the lines of such existing elevated\nrailroad, and may make adequate provision for the protection of such\nrights. The commission, with like approval may authorize the re-location\nof any devices and appurtenances of such person in any street in which\nthey exist, any such re-located structure to be held under all the terms\nand privileges of the original franchise.\n  b. A certificate shall be prepared by the commission, attested by its\nseal and the signature of its presiding officer, setting forth in detail\nthe action taken by the commission with respect to such connecting or\nextended facilities, and the terms, conditions and requirements\naforesaid, including provisions as to such annual payments and the\nfuture readjustments thereof. A like certificate shall be prepared in\nlike manner upon every modification of the terms of the contract as\nprovided in this chapter. Every such certificate shall prescribe the\nterms and conditions of the readjustments of such annual payments and\nmay provide for the determination of such amount upon such readjustments\nby arbitration or by the supreme court. Such certificate shall be\ndelivered to such person upon the receipt by such commission of a\nwritten acceptance of such terms, conditions and requirements, duly\nexecuted by such person so as to entitle it to be recorded.\n  c. Such certificate shall be filed in the office of the secretary of\nstate, and a duly certified copy thereof shall be filed in the office of\nthe clerk of each county to which such privileges granted hereunder\npertain, and thereupon, and upon fulfillment, by such person so far as\nit relates to such facilities, of such of the requirements and\nconditions as are necessary to be fulfilled in such cases, under section\nseventeen of article three of the constitution. Upon fulfillment by such\nperson of such other terms, conditions and requirements enumerated in\nsuch certificate, as the commission may require to be fulfilled as a\ncondition precedent to commencing such work, such person shall in such\ncases possess in addition to existing franchises all the powers\nconferred by this chapter upon corporations with respect to his\nrailroads authorized to be constructed as aforesaid. When any\nfacilities, shall be so fixed and determined, and a certificate as\naforesaid shall have been duly filed, such person may construct them\nwith all the rights, and with like effect as though they had been a part\nof the original route of his railroad then in actual operation or in\nprocess of construction.  A franchise, right or authority shall not be\ngranted under this section to extend any railroad, make any connections,\nlay any additional track or acquire any terminal or other facilities for\na longer period than the unexpired term of the original grant, franchise\nor contract of the railroad and any renewal thereof contained in such\ncontract to which such facilities are added. Any such franchise, right\nor authority granted hereunder shall also be subject to be terminated by\nthe city in like manner and under the same terms and conditions and at\nthe same time as may be provided in such original grant for the\ntermination or taking by the city of that grant if provision therefor be\nmade.\n  d. The certificate prepared by the commission as aforesaid when\ndelivered and accepted by such person shall be deemed to constitute a\ncontract between such city and such person according to the terms of\nsuch certificate. Such contract shall be enforceable by the commission\nacting in the name of and in behalf of such city or by such person\naccording to the terms thereof, but subject to the provisions of this\nchapter. The terms of such contract, from time to time with the consent\nof such person, may be modified by the commission. In the case of any\ngrant under this section for the extension of any railroad or the\nmaking, laying or acquisition of facilities under the provisions of this\nsection, the commission may make provision as a condition of such grant\nfor the termination by the city of the original grant or franchise or\ncontract, for the railroad to which such facilities are to be added and\nfor the taking over at the same time of the plant and property of the\ngrantee or holder of such original franchise or contract suitable to and\nused for the purpose of such original grant or contract in connection\nwith the termination of the franchise, right or authority granted under\nthis section, upon giving a specified notice and paying an amount for\nsuch plant and property, as property, excluding any value for the\noriginal franchise or contract, which amount shall not exceed actual\ncost of such plant and property plus fifteen per cent. thereof.  Such\namount shall decrease under the provisions of the grant made hereunder\nas the franchise or contract continues, so that at the end of the grant\nor contract no amount shall be paid except for equipment as defined in\nthe grant. The grant shall provide a method of ascertaining the amount\nto be paid for such plant and property on termination by the city of\nsuch original franchise or contract or for equipment at the end of the\nfull term thereof. The grant may provide for determining from time to\ntime in default of agreement by arbitration or by the court a valuation\nof such plant and property or any part or portion thereof for any\npurpose under such grant. The grant in such case may also make suitable\nprovision to the end that if the city shall after so terminating such\noriginal grant or franchise or at the end of the full term thereof\npropose to grant a a new franchise, right or authority in the enjoyment\nof which such plant and property or any part thereof may be utilized,\nthe title to and possession of such plant and property or any part\nthereof may be transferred directly to the grantee of any such new\nfranchise.\n  e. But the construction and operation of such facilities are hereby\nauthorized only upon condition that the consent of the owners of\none-half in value of the property bounded on, and the consent also of\nthe board of estimate and of the mayor be first obtained, or in case the\nconsent of such property owners cannot be obtained, the appellate\ndivision of the supreme court in the department in which they are\nproposed to be constructed, upon application, in the same manner, and on\nthe same notice specified in section twenty-one of this chapter, may\nappoint three commissioners who shall determine after a hearing of all\nthe parties interested whether such facilities ought to be constructed\nor operated, and their determination, confirmed by the court, may be\ntaken in lieu of the consent of the property owners.\n  f. Every such certificate granting any franchise, right or authority,\nas aforesaid, except for additional track added to any elevated rapid\ntransit railroad, shall provide that upon the expiration of a period\nfixed therein the franchise shall end and that upon such termination\nthereof all the rights of property of the grantee in the streets shall\ncease and terminate without compensation and shall further provide that\nupon such expiration of such franchise, right or authority the plant and\nproperty together with the appurtenances thereto, of the grantee,\nconstructed pursuant to such certificate, except betterments, additions,\nimprovements and additional equipment as defined in the grant, shall\nbecome the property of the city without further or other compensation to\nthe grantee; and that such betterments, additions, improvements and\nadditional equipment shall be and become the property of the city on\npaying the grantee the amount ascertained as provided pursuant to such\ncertificate. The provisions of this section shall apply to any railroad\nconstructed, constructing or contracted for under the provisions of\nsection thirty-one of this chapter and to any person constructing or\noperating any such railroad.\n