NY Rapid Trans L § 33 (2021)
2021 New York Laws RAT - Rapid Transit Article 4 - Construction and Operation by the Board of Transportation 33 - Acquisition of Railroads or Interests Therein.

§  33.  Acquisition of railroads or interests therein. a. The board of   transportation, with the approval of  the  board  of  estimate  and  the   mayor, may purchase, or acquire an option to purchase from time to time,   for such price and upon such terms and conditions as may be agreed upon,   and acquire by conveyance or grant to such city, to be delivered to such   board  of transportation, any line of railroad, or part of any such line   and/or equipment therefor already constructed or provided or in  process   of   construction   or  provision,  of  the  character  which  might  be   constructed or  provided  as  a  railroad  and/or  equipment  under  the   provisions  of  this  chapter,  and which in the opinion of the board of   transportation it is for the interest of the  public  and  the  city  to   acquire  for  rapid  transit  purposes.  The  payment  for  such line of   railroad, or a part thereof, and equipment may be made out of funds made   available pursuant to the local finance law, or by  the  application  of   revenues  derived  from  the  operation  of  any  such  line alone or in   conjunction with other railroads owned by such city, or the payment  may   be made partly by one method and partly by the other method as the board   of  transportation,  with  the approval of the board of estimate and the   mayor, shall determine. The moneys necessary to be  paid  for  any  such   railroad and equipment purchased, together with all expenses necessarily   incurred in connection therewith shall be raised through the application   of revenues from operation as above provided or shall be raised pursuant   to  the  local  finance  law.  The  method of payment for the line to be   purchased shall be  described  and  specified  in  a  form  of  proposed   contract  for purchase and sale which shall be submitted for approval to   the board of estimate and the mayor by the board of transportation.  The   form  of  proposed contract may incorporate such terms and conditions as   provide for a deferred payment of the agreed purchase  price.  Any  such   railroad or equipment acquired in accordance with the provisions of this   section,  and any railroad acquired in accordance with the provisions of   article eight of this chapter or former  article  seven  of  the  public   service law, shall be deemed to have been constructed or provided for at   the  expense of the city within the meaning of this chapter and the cost   of acquisition thereof shall be deemed and considered  as  the  cost  of   such  construction  or provision, in like manner as though such railroad   or equipment had been constructed or provided pursuant to the provisions   of this chapter.b. Unless all the consents to the construction and  operation  of  any   such railroad so purchased required by article three, section seventeen,   of the constitution shall have been obtained prior to such purchase, the   board  of  transportation  shall  proceed  to  secure  such  consents as   required by section twenty-one of this chapter. As soon as such consents   shall have been obtained, the board of transportation for and on  behalf   of  the  city, with the approval of the board of estimate and the mayor,   may enter into a contract with any person for the equipment, in whole or   in part, at the cost and expense of such person, and for the maintenance   and operation of any such railroad so  purchased,  either  alone  or  in   conjunction with other railroads then owned or thereafter constructed or   acquired  by  such  city,  for  a  term  of years to be specified in the   contract, not to exceed twenty-five years.  Such contract may contain  a   covenant  for one renewal of not to exceed twenty-five years, unless the   purchase price or some part thereof is to be paid out of the revenues as   provided in subdivision a of this section, in which event such  contract   may  be for a longer period than twenty-five years but shall provide for   its termination by such city, at its option, on one year's notice  given   at  any  time  or  after  the  expiration  of  any  specified period not   exceeding ten years, upon the payment by or for such city of the  amount   of  any  balance  of  such  purchase price then remaining unpaid and the    unamortized portion of the cost and expense of any equipment constructed   or provided at the cost of such person after the date of such  contract.   Any such contract providing for the payment of the purchase price of any   such  railroad  or equipment wholly or in part out of the revenues shall   provide for  the  application  of  revenues  derived  from  the  use  or   operation of the railroads included therein and the order of priority of   such  application.  Such  contract  shall provide for the payment out of   such revenues of current annual  interest  charges  at  a  rate  of  not   exceeding  six  per  cent  per  annum,  and  current annual amortization   charges at a rate to be specified, on the amount of the balance  of  the   purchase  price  remaining  unpaid,  of  such  railroad  or equipment so   purchased by such city,  and  on  the  actual  cost  of  any  equipment,   constructed  or provided by such person after the date of such contract.   Every such contract shall contain such terms and conditions  as  to  the   rates  of  fares  to  be  charged  and  the  character of services to be   furnished and the rental to be  paid,  or  the  terms  upon  which  such   railroads  are to be operated, as the board of transportation shall deem   to be best suited to the public interests and as the board  of  estimate   and  the  mayor  shall approve. Any domestic railroad corporation owning   any line of railroad which the city is authorized  by  this  section  to   purchase  and acquire as above provided, with the consent of the holders   of record of at least two-thirds of its outstanding  shares  of  capital   stock entitled to vote thereon, given as provided in section one hundred   forty-eight  of  the  railroad law, may transfer and convey to such city   such railroad and equipment or any part thereof,  and  the  devices  and   appurtenances  and  franchises  thereof or used in connection therewith,   subject, however, to the rights  of  appraisal  of  the  shares  of  any   dissenting  stockholder  as provided in section one hundred sixty-one of   the railroad law.c. If a contract has been made for equipment, in  whole  or  in  part,   maintenance and operation of a railroad constructed or to be constructed   by  the  city  and  owned  by  the  city  upon any route established and   consented to as provided in this chapter, which  contract  provides  for   construction by the city and equipment, maintenance and operation by the   contractor  of  branches  and extensions of such railroad and additional   lines also to be owned by the city upon terms and conditions as provided   in such contract, the board of transportation in lieu of constructing  a   branch  or extension or an additional line with the consent of the board   of estimate and of the mayor may acquire by conveyance or grant to  such   city  to  be  delivered  to  such  board  of transportation the right to   connect such railroad with and to operate within the city over any track   of a railroad already constructed or  in  process  of  construction  and   which  right in the opinion of the board of transportation it is for the   interest of the public  and  the  city  to  acquire  for  rapid  transit   purposes  in  lieu  of  constructing  such  branch,  extension  or  such   additional lines.  The grant shall contain such terms and conditions  as   to  the compensation to be paid for such right, the term during which it   shall be enjoyed,  which  with  any  renewal  shall  not  be  more  than   twenty-five years, and such other terms and conditions to effectuate the   purpose  of  the grant, including the right of revocation upon terms and   conditions to be specified in such grant, as the board of transportation   shall deem best suited to the public interest and the board of  estimate   and the mayor shall approve.