2023 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.