NY Pub Auth L § 1203 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 9 - New York City Transit Authority 1203 - Transfer of Transit Facilities by the City to the Authority.

§  1203.  Transfer of transit facilities by the city to the authority. 1.  a. On or before June first, nineteen hundred fifty-three,  the  city may, by resolution of the board of estimate or by instruments authorized by  any  such resolution, enter into an agreement with the authority for the transfer to the authority, for use in the execution of its corporate purposes, of the transit facilities now owned or hereafter  acquired  or constructed  by  the city and any other materials, supplies and property incidental to or necessary for the operation thereof. Any such agreement shall provide for transfer of such facilities by deed, lease, license or other arrangement, provided the term thereof shall not be less than  ten years  and  authorize  the  authority  to  take  jurisdiction,  control, possession  and  supervision  of  such  transit  facilities,  materials, supplies  and  property  on  or  before June fifteenth, nineteen hundred fifty-three.   b. (i) Such agreement shall provide that capital costs of a nature not heretofore charged as operating expenses shall be paid by the  city,  or at  the option of the authority may be paid in the first instance by the authority but in such event, the authority shall be entitled to  recover from  the  city  the  amount  of such costs; provided, however, that the total amount of such capital costs which the authority may incur without the approval of the mayor in any city fiscal year shall not exceed  five million  dollars  and that no other such capital costs shall be incurred by the authority without such approval. Where the city  is  required  to reimburse  the authority for the amount of any capital costs pursuant to such agreement, serial bonds or capital notes may be issued by the city, pursuant to the local finance law, to finance any such reimbursement  in the  same manner and to the same extent as if such costs were to be paid directly by the city.   The authority shall submit annually to the  city  planning  commission and the mayor of the city on or before October fifteenth in each year an estimate  of  all such capital costs for inclusion in the capital budget of the city.  (ii) From and after March first,  nineteen  hundred  sixty-eight,  the authority  shall  also  have  the  right  to incur capital costs of such nature in its own name to the extent that capital funds are available to it for expenditures of such nature pursuant to the provisions of section twelve hundred nineteen-a of this chapter or of any other  provision  of law,  which  capital  costs  shall not be payable by the city; provided, however, that no project to be financed by the use of such capital funds which is estimated by the authority to involve an expenditure in  excess of one million dollars shall be commenced unless the mayor and the board of estimate shall each have been notified in writing by the authority of the  intent of the authority to undertake such project and of the nature thereof. No such project shall be commenced if and to  the  extent  that either  the  mayor  or  a majority in voting power of the members of the board of estimate shall find that it is incompatible with sound planning for the development or redevelopment of the city, provided such finding, together with the reasons therefor, is set forth in a writing  delivered to  the  authority within thirty days of the receipt by the mayor or the board of estimate, as the case  may  be,  of  the  notification  of  the authority  relating  to  such  project.  If  any  such project is not so disapproved, it may nevertheless not be commenced unless and  until  the city  shall  have  been  given an opportunity to include the same in the capital budget of the city  for  the  first  fiscal  year  of  the  city commencing  not less than six months after receipt of such notification. If and to the extent that such  project  is  included  in  such  capital budget,  the  authority  may  not thereafter incur capital costs for the same in its own name. If or to the extent such project is  not  included  in  such  capital  budget, the authority may incur capital costs for the same in its own name. The operation of sections twenty,  twenty-one  and twenty-two  of  the rapid transit law shall be suspended with respect to any  project  financed  with  the  capital  funds  referred  to  in this subparagraph.   c. Such agreement shall provide that the authority shall have the  use and  possession  of all property owned or leased by the city and used or occupied by the board of transportation  on  March  fifteenth,  nineteen hundred fifty-three in connection with or incidental to the operation of such transit facilities.   d.  No  provision in such agreement shall purport to limit or restrict or have the effect of limiting or restricting,  the  power  granted  the authority  to manage, control or direct the maintenance and operation of such transit facilities or the fares or service thereof.   2. Such agreement shall provide for payment by the city of:   a. Capital costs for projects connected with such  transit  facilities included in the capital budget of the city for periods prior to December thirty-first,  nineteen  hundred  fifty-three, except that the authority shall not require payment of, and the city shall not pay, capital  costs of such projects without prior approval of the board of estimate.   b. Liabilities of the city or the board of transportation for:  (1)  Pension or retirement contributions on behalf of persons who were employed on transit facilities heretofore acquired by the city.  (2) Contributions to the New York City employees' retirement system on behalf of officers or employees whose compensation has been paid out  of the operating revenues of the board of transportation of the city, which contributions  have  or shall hereafter become due or payable for fiscal years of the city ending on or before June thirtieth,  nineteen  hundred fifty-three.   c. All other liabilities of the board of transportation on the date of the conveyance.   d.  Ten  million  dollars  derived from any funds of the city (but not from borrowed funds), or  from  the  operating  fund  of  the  board  of transportation at the time of such transfer, for use by the authority as initial  working  capital (1) in partial consideration of the acceptance by the authority of the initial transfer, in which case  the  sum  shall not  be repaid, or (2) as a loan, in which case such sum shall be repaid in not less than five nor  more  than  ten  equal  annual  installments, commencing July first, nineteen hundred fifty-four.   3.  a.  Such  agreement may contain provisions relating to the use and occupancy by the  authority  of  real  property  (in  addition  to  that transferred  pursuant  to  subdivision  one  of  this  section)  now  or hereafter owned or leased by the city, on such terms as may be  mutually agreed  upon  by  the  city  and  the  authority, and may provide for or authorize surrenders to the city of property no longer required  by  the authority.   b. The authority shall be entitled to utilize the officers, employees, agents,  facilities  and  services  of  the  city  on the same terms and conditions  as  were  applicable  to  or  provided  to  the   board   of transportation on March fifteenth, nineteen hundred fifty-three.   4.  The  city and the authority are hereby authorized and empowered to make or enter into any contracts, agreements, deeds, leases, conveyances or other instruments as may be necessary or  appropriate  to  effectuate the  purposes  of  this  title  and  they  shall have complete power and authority to do and to authorize the doing of  all  things,  incidental, desirable or necessary to implement the provisions of this section.   5. Upon the filing by the authority with the clerk of the city and the secretary   of   state  of  a  copy  of  the  instruments  or  documents  effectuating the transfer,  the  authority  shall  take  possession  and control of the transit facilities and other property transferred thereby together  with  all contracts, books, maps, plans, papers and records of or  in  the  possession  of  the  board  of  transportation  of whatever description, incidental  to  or  necessary  for  the  operation  of  the facilities  transferred  by  such  agreement  or  the performance of the duties of the authority as provided by this title.   6. When in the discretion of the authority there is available a supply of electric power adequate for the efficient and proper operation of the transit facilities either from a private utility or otherwise  at  rates and  under  circumstances  deemed by the authority to be reasonable, the authority may make such provisions for the utilization of such  electric power  as  it  may  see  fit  and surrender to the city the power plants presently leased  by  the  authority  from  the  city  pursuant  to  the provisions  of  this title. The foregoing provisions of this subdivision shall be applicable only to actions of the authority undertaken prior to February first, nineteen hundred and sixty.   7. Notwithstanding the aforesaid provisions of this section  the  city may  transfer  to  the  authority  title and ownership to the materials, supplies and property incidental to or necessary for  the  operation  of the  transit  facilities  which were heretofore leased to the authority, and the authority and the city may enter into  an  agreement,  modifying the  agreement  of lease dated June first, nineteen hundred fifty-three, as amended, renewed and supplemented, to provide for  such  transfer  of title  and  ownership  and containing such further terms and conditions, not inconsistent with law, as may be agreed upon between the parties.