NY Pub Auth L § 1207-M (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 9 - New York City Transit Authority 1207-M - Transit Projects.

§  1207-m.  Transit projects. 1. The term "transit project" as used in this section shall have the meaning given to such term from time to time in section twelve hundred sixty-six-c of this article. The provisions of this section shall be controlling and the authority and its subsidiaries shall have the powers  provided  in  this  section  notwithstanding  any contrary  provision  of  this  title  or of local law or of any lease or other agreement with the city.   2. (a) The authority is hereby authorized to request the  metropolitan transportation  authority  to  undertake  any  transit  project  and the authority and its designated subsidiaries are each hereby authorized (i) to enter into agreements with the metropolitan transportation  authority concerning  transit  projects;  (ii) to acquire in its own name by gift, purchase or condemnation any real or personal property (or any  interest therein)  which  is  needed  or  useful  for  or in connection with such project, and to surrender the use, occupancy, control or  possession  of or to transfer the same, or any other such real or personal property (or any  interest  therein)  which it owns, leases, operates or controls, to the metropolitan transportation authority  or  its  designee;  (iii)  to accept  a transfer, transfer back, lease or sublease of any such project or part thereof upon its  completion;  and  (iv)  to  make  its  agents, employees  and  facilities  available to the metropolitan transportation authority in connection therewith.  (b) The authority  and  its  subsidiary  corporation  is  each  hereby authorized  to  sell  or transfer, without regard as to how or from whom acquired, all or part of its interest in any equipment which  is  deemed to  be a mass commuting vehicle under the United States internal revenue code or the regulations thereunder, including, without  limitation,  any of  the  same  obtained as transit projects or obtained from or financed with money received from the Triborough bridge and tunnel authority, for such consideration and on such  terms  or  conditions  as  it  may  deem appropriate, and to obtain a lease from the transferee on such terms and conditions  and  for  such period as it may deem appropriate pursuant to which it may operate,  use,  control  or  possess  such  mass  commuting vehicle  in  furtherance  of the statutory purposes of the authority and its subsidiaries, provided (i) such lease  contains  an  option  to  the authority  or  its  subsidiary corporation to repurchase its interest at the expiration of the scheduled lease term  for  nominal  consideration, and  (ii) the aggregate of the regularly scheduled rental payments which the authority  or  its  subsidiary  corporation  is  obligated  to  make pursuant to such lease during each twelve month period of the lease term shall  not  exceed the aggregate amount receivable, whether by principal or interest, by the authority or its  subsidiary  corporation  from  its transferee  during  each such twelve month period. Without limitation of the foregoing, any lease entered into pursuant hereto may  also  contain provisions  requiring  the  authority  or  its subsidiary corporation to indemnify the transferee  for  any  loss  resulting  from  the  loss  or destruction  of  any mass commuting vehicle which is the subject of such lease, or any  loss  arising  out  of  any  misrepresentation,  act,  or omission  of  the  authority  or  its subsidiary in connection with such lease, and requiring the authority  or  its  subsidiary  corporation  to undertake to replace, repair or restore any such mass commuting vehicle, but  such  obligations  shall  not  be deemed regularly scheduled rental payments for purposes of the preceding  sentence.  Rental  payments  and other  payments  or  costs  incurred  by the authority or its subsidiary corporation in discharge of its obligations under any lease entered into as hereinabove provided shall  not  be  deemed  capital  costs  for  the purposes  of  section  twelve hundred three or twelve hundred three-a of this title, and the considerations received  by  the  authority  or  its  subsidiary  corporation in connection with any transactions entered into pursuant to the authorization of this paragraph may be expended free  of any  restriction  set  forth  in  subparagraph  (ii) of paragraph (b) of subdivision  one  of section twelve hundred three or in paragraph (c) of subdivision five of section twelve hundred three-a of this title.  (c) Neither the authority nor its  subsidiary  shall  enter  into  any transaction  authorized  by paragraph (b) of this subdivision unless the following standards and procedures have been met:  (i) notice of intention to negotiate shall be published  in  at  least one newspaper of general circulation, and a copy thereof shall be mailed to all parties who have requested notification from the authority or its subsidiary  to  engage  in transactions of this type.  Such notice shall describe the nature of the proposed transaction and the factors  subject to negotiation, which shall include, but not be limited to, the price to be paid to the authority or its subsidiary;  (ii)  the  authority  or  its  subsidiary  shall  negotiate with those respondents whose response complies with the requirements set  forth  in the notice;  (iii)  the  board  of the authority or its subsidiary shall resolve on the basis of particularized findings relevant to the factors  negotiated that such transaction will provide maximum available financial benefits, consistent with other defined objectives and requirements.  (d)  The  authority  and its subsidiary shall provide to the governor, the temporary president of the senate, the speaker of the assembly,  the minority  leader  of the senate and the minority leader of the assembly, notice of each lease entered into pursuant  to  paragraph  (b)  of  this subdivision  and supporting documentation of compliance by the authority and its subsidiary with subparagraphs (i), (ii) and (iii)  of  paragraph (c) of this subdivision.  (e)  Paragraphs  (c)  and (d) of this subdivision shall be of no force and effect with respect to any lease transaction entered  into  pursuant to  a  commitment  approved  prior  to  January  first, nineteen hundred eighty-five by the board of the authority or its subsidiary or the board of the metropolitan transportation authority.   3.  The  authority  and  its  designated   subsidiaries   are   hereby authorized,  in  connection with any transit project, to pay or agree to pay, in a manner  and  on  terms  and  conditions  satisfactory  to  the metropolitan  transportation  authority, any portion of the costs to the metropolitan transportation authority of such transit  project  and  the financing  thereof  which is not paid to the metropolitan transportation authority from any federal, state or local aid or assistance or from any other  moneys  made   available   or   payable   to   the   metropolitan transportation authority by others for such project.   4.  (a) Such agreements with the metropolitan transportation authority may, without limitation, contain provisions obligating the authority  or its designated subsidiary to:  (i)  issue  its  notes  or  bonds,  or  execute and deliver its lease, sublease and other  such  contractual  obligations,  in  payment  for  a transfer,  lease  or  sublease  of  a  transit  project  to any of them, provided, however, that in no event shall the aggregate principal amount of all notes and bonds together with the capitalized value of all lease, sublease and other such contractual obligations, exceed the sum  of  one billion  six hundred million dollars, excluding from such limitation (A) the principal amount of any bonds or  notes  of  the  authority  to  the extent  the  amount thereof is paid, is payable or has been agreed to be paid by the federal government or any agency or instrumentality  thereof to  the  authority  or  to  the  holders of such bonds or notes, (B) the principal amount of any bonds or notes of the authority issued to refund  or otherwise repay other obligations issued for such  transit  projects, (C) the principal amount of any bonds or notes and the capitalized value of  any  lease,  sublease  or  other such contractual obligation, to the extent such obligations are paid or agreed to be paid, subject to annual appropriation,  under  service  contracts  issued  by  the  state to the metropolitan transportation authority for the benefit of  the  authority or its subsidiaries pursuant to the provisions of section sixteen of the transportation  systems  assistance  and financing act of 1981, or under any similar contract of the metropolitan transportation authority or the authority with any other governmental entity  for  the  benefit  of  the authority  or its subsidiaries, (D) the principal amount of any bonds or notes  of  the  authority  issued  to  the  metropolitan  transportation authority  in  connection  with  the funding of any debt service reserve fund required by  any  resolution  of  the  metropolitan  transportation authority  pursuant  to which special obligation bonds of that authority to fund a transit project were issued, and (E) a principal amount of any bonds or notes of the authority equal to  the  amount  of  any  original issue discount from the principal amount of the special obligation bonds or   notes  issued  by  the  metropolitan  transportation  authority  in connection with the financing of a transit project by that authority;  (ii) give security for  the  payment  of  such  notes,  bonds,  lease, sublease  or other contractual obligations, including a pledge of all or any part of its revenues or  other  moneys,  which  pledge  may  contain covenants  with  respect  to  the charging and fixing of fares, fees and rentals, the use and disposition of such fares, fees, rentals and  other charges, and the setting aside of reserves therefrom.  (b)  Such  agreements,  and any notes, bonds, lease, sublease or other contractual obligations issued or entered into by the authority  or  its designated  subsidiary  pursuant  thereto, may, without limitation, also contain provisions as to:  (i) limitations with respect to the use  and  disposition  of  transit projects and with respect to any other transit facilities;  (ii)  limitations  on  the issuance of additional bonds, notes, lease, sublease or other contractual obligations, the terms upon which they may be secured and the funding or refunding thereof;  (iii) with respect to bonds or notes, vesting in a trustee or trustees such property rights, powers and duties in trust as  it  may  determine, which  rights,  powers  and duties may include, but shall not be limited to, those set forth in section twelve hundred seven-h of this title;  (iv) defining the acts or omissions to act which  shall  constitute  a default and providing rights and remedies in the event of default;  (v)  any  other  matters, of like or different character, which in any way affect the security or protection of the metropolitan transportation authority or any lessor; and  (vi) consenting to the extending or  assignment  by  the  metropolitan transportation  authority  or by any lessor to the holders of any of its bonds, notes or lease obligations of all of the benefits and  rights  of the  metropolitan transportation authority or of such lessor provided by any such agreement or other instrument.  (c) The term "revenues" as used in this subdivision shall include  all those  moneys  referred to in section twelve hundred of this article, as well  as  all  operating  subsidies  provided  by  any  public   benefit corporation or by any governmental entity, federal, state or local.  (d)  The  term  "capitalized  value" as used in this subdivision shall mean the present value of all future payments required  under  a  lease, sublease  and  other such contractual obligation discounted at a rate of interest determined on the basis of the net interest cost  of  the  last metropolitan  transportation authority's special obligation bonds issued  prior to the execution of any such lease, sublease or other  contractual obligation  or,  if  no such bonds have been issued, on the basis of the net interest cost of the last bonds issued by the Triborough bridge  and tunnel  authority, issued in payment for the transfer, lease or sublease of any such transit projects.   5. It is the intention hereof that, subject to  such  agreements  with bondholders  or noteholders as may then exist, any pledge of revenues or other moneys made by the authority or its subsidiaries  shall  be  valid and  binding from the time when the pledge is made; that the revenues or other moneys so pledged and thereafter received by the authority or  its subsidiaries  shall  immediately  be  subject to the lien of such pledge without any physical delivery thereof or further act, and that the  lien of  any  such  pledge  shall be valid and binding as against all parties having claims of any kind in tort, contract  or  otherwise  against  the authority  or its subsidiaries irrespective of whether such parties have notice thereof. Neither the agreement nor any other instrument by  which a pledge is created need be recorded.   6.  So long as the authority or any of its subsidiaries shall have any outstanding and unpaid obligation in connection with a transit  project, the authority and such subsidiaries shall have the power at all times to fix or adjust the rate or rates of fares, fees, rentals or other charges to  be  charged for the use of their transit facilities as may, together with all other lawfully available moneys, be necessary in their judgment to produce sufficient revenues to  pay  such  obligations  as  the  same become  due, in addition to paying as the same shall become due expenses of  operation  of  the  transit  facilities  and  satisfying  all  other obligations   of  the  authority  and  such  subsidiaries.  No  acts  or activities taken or proposed to be taken by the  authority  pursuant  to this  subdivision  shall  be  deemed to be "actions" for the purposes or within the meaning of article eight of  the  environmental  conservation law.   7.  (a)  In  connection  with  (i)  the lease between the city and the authority dated June first, nineteen hundred fifty-three, and  (ii)  the lease  between  the  city  and  the  Manhattan and Bronx surface transit operating authority dated March twentieth,  nineteen  hundred  sixty-two (such  leases,  as  heretofore supplemented, amended or renewed, and the tenancies originally created thereby, being referred to in this  section as "the existing leases"), the city, acting either by the mayor alone or by  resolution of the board of estimate, or by instruments authorized by such  resolution,  and  the  authority  are  authorized  to  enter  into agreements  for  renewal or extension of the existing leases, or for new leases, for such terms of years and upon such other terms and conditions as the parties thereto shall agree and the  metropolitan  transportation authority  shall  approve,  provided  that  under the terms thereof, the rights, privileges and obligations of the parties are  not  inconsistent with  the provisions of, or in derogation of the powers of the authority all as provided in title nine of  article  five  of  this  chapter,  and provided  further that such agreements shall in no way impair the rights or powers of the authority or the Manhattan and  Bronx  surface  transit operating  authority to fulfill the terms of any contract made by either of them with the holders of any  of  their  then  outstanding  bonds  or notes,  and  such  agreements  shall provide that such leases may not be terminated or permitted to expire or be amended in any way  inconsistent with  the  provisions  of  any agreement, bond, note, lease, sublease or other contractual  obligation  given  or  made  by  either  of  them  in connection with a transit project. Neither the provisions of section one hundred  ninety-seven-c  of  the  New  York  city charter, relating to a uniform land use review procedure, nor the provisions of any other local  law of like or similar import shall apply to the renewal or extension of the existing leases or to the making of new leases as herein provided.  (b)  Notwithstanding the provisions of any other law, general, special or local, or the provisions of the existing leases,  if  either  of  the agreements  authorized by paragraph (a) above is not entered into, but a note, bond, lease,  sublease  or  other  contractual  obligation  for  a transit project has been issued or entered into, then (i) no party to an existing  lease  may terminate the same, serve any notice of termination pursuant thereto, exercise any option to terminate reserved  therein  or permit  the expiration thereof, (ii) the city shall not in any way limit or disturb any right of the tenant to use, occupy, control  and  possess any  of  the properties, facilities or revenues which are the subject of such existing lease, and (iii) the city shall not seek to  enforce  such existing lease in any way inconsistent with or contrary to the manner in which  such  existing lease had been administered prior to the enactment of this section or inconsistent with or contrary to the interests of the metropolitan transportation authority or any lessor under any agreement, notes, bonds, lease, sublease or other contractual  obligations  of  the authority  or  any  of  its  subsidiaries  issued  or  entered  into  in connection with a transit project (and to the extent the  provisions  of such leases conflict at any time or in any manner with the provisions of any  such  note,  bond, lease, sublease or other contractual obligation, the provisions of such note, bond, lease, sublease or other  contractual obligation shall be controlling and conflicting provisions of the leases with  the  city shall be disregarded), unless prior thereto the city has satisfied all of such outstanding  notes,  bonds  or  other  contractual obligations  and  provided  for  the termination of all such agreements, leases and subleases, all in accordance with their terms.  If and to the extent moneys are paid by the city to the authority or its  subsidiaries to   satisfy   their  obligations  to  the  metropolitan  transportation authority under such instruments, the authority  and  such  subsidiaries shall  remit  such  moneys to the metropolitan transportation authority, which shall, in turn, apply the same to the satisfaction and termination of its own notes, bonds and leases issued or entered into in  connection with a transit project in accordance with their terms.  (c)  Upon  termination or expiration of a new lease or of a renewed or extended  existing  lease  as  permitted  in  paragraph  (a)   of   this subdivision,  or  upon satisfaction of the requirements of paragraph (b) of this subdivision, title to any real  or  personal  property  (or  any interest therein) constituting all or any part of a transit project then vested  in  the authority or any of its subsidiaries or the metropolitan transportation authority pursuant to  the  provisions  of  this  chapter shall  be  transferred  without  further consideration or payment to the city.   8. The state of New York does hereby pledge  to  and  agree  with  the authority  and  its  subsidiaries  and  the  metropolitan transportation authority and the holders of bonds or notes or lease, sublease or  other contractual  obligations  issued  by  any  of  them in connection with a transit project or in connection with the transfer of  the  interest  of any  of  them  in  and  the  lease  from  the transferee of any property furnished to it pursuant to chapter  twelve  of  the  laws  of  nineteen hundred  seventy-nine  or  section  fifteen  of  chapter  three  hundred fourteen of the laws of nineteen hundred eighty-one,  or  in  connection with  any  transaction  entered  into  pursuant  to the authorization of paragraph (b) of subdivision two of this section, that  the  state  will not  limit  or alter the denial of authority under subdivision eleven of this section, or the rights and powers vested in the authority  and  its subsidiaries by this title to fulfill the terms of any agreement made by  any  of them with the metropolitan transportation authority or with such holders, or in any way impair  their  rights  and  remedies  until  such agreements,  bonds,  notes,  and obligations, together with the interest thereon  and  all  costs  and  expenses in connection with any action or proceedings by or on behalf of the metropolitan transportation authority or such holders, are fully met and discharged.  The  authority  and  its subsidiaries  are  each  authorized  to  include  this  pledge  and  the agreement of the state in any agreement with the holders of  such  bonds or  notes  or  lease, sublease or other obligations and in any agreement with the metropolitan transportation authority  relating  to  a  transit project which may extend the same to the holders of its bonds, notes and lease obligations.   9.  The provisions of this section and of all agreements undertaken by the authority or any of its subsidiaries in accordance  therewith  shall in  all  respects  be  subject  to  the  rights  of  the  holders of any outstanding bonds or notes of the authority and its subsidiaries.   10. In connection with the negotiation, award  and  implementation  of contracts  of the authority relating to transit projects, the provisions of paragraphs (a), (b), (c) and (d) of subdivision thirteen  of  section twelve  hundred sixty-six-c of this article shall apply to the authority as if it were the "authority"  referred  to  therein,  and  the  officer designated  by  the  metropolitan  transportation  authority pursuant to paragraph (e) of such  subdivision  shall  perform  the  duties  therein described with respect to such contracts of the authority.   11.  So  long  as  the  authority  or  any  of  its  subsidiaries,  or metropolitan transportation authority, shall have outstanding any notes, bonds, lease, sublease or other contractual  obligations  authorized  by this  section  or  section  twelve hundred sixty-six-c or twelve hundred sixty-nine of this article, or which have been  issued  or  incurred  in connection  with  the transfer of the interest of any of them in and the lease from the transferee of any property furnished pursuant to  chapter twelve  of  the laws of nineteen hundred seventy-nine or section fifteen of chapter three hundred  fourteen  of  the  laws  of  nineteen  hundred eighty-one, neither the authority nor any of its subsidiaries shall have the  authority  to  file  a voluntary petition under chapter nine of the federal bankruptcy code, or such  corresponding  chapter,  chapters,  or sections as may, from time to time, be in effect, and neither any public officer nor any organization, entity or other person shall authorize the authority or any of its subsidiaries to be or become a debtor under said chapter  nine or said corresponding chapter, chapters or sections during any such period.   12. A project financed by the authority's issuance of its bonds, notes or other obligations, pursuant to subdivision one-a  of  section  twelve hundred  seven-b  of  this title shall be deemed to constitute a transit project for the purposes of this section and any  notes,  bonds,  lease, sublease  or  other contractual obligations with respect to such project shall, for purposes of this section, be deemed to have  been  authorized by  this  section;  provided,  however,  that  such project shall not be deemed to constitute part of any capital program plan for  the  purposes of  section  twelve  hundred  sixty-nine-b of this article nor shall the principal amounts of any bonds or notes, nor the  capitalized  value  of any  lease,  sublease, or other contractual obligation of the authority, issued or entered into by the authority  pursuant  to  such  subdivision one-a,  be  included  in any computation pursuant to subdivision four of this section.