N.Y. Rapid Transit Law § 81: Connection with other railroads or transit facilities

§ 81. Connection with other railroads or transit facilities. a. The

commission, from time to time, with the approval of the board of

estimate and the mayor, upon application of any person owning, leasing,

constructing or actually operating or having the right by contract to

thereafter operate a railroad wholly or in part within the limits of the

city, if in the judgment of such commission, the public interests so

demand, may also fix and determine the route by which any such person

may connect with other railroads, or the stations thereof, or with

ferries or bridges, or may extend any line which he operates or has the

right to operate as aforesaid within such city, or upon the application

of a corporation organized under the railroad law for any of the

purposes specified in subdivision 1 of section forty of this chapter,

and agreeing to equip, maintain and operate or to procure to be

equipped, maintained and operated, any road of the city in connection

with any existing railroad of a railroad corporation and any extension

thereof wholly within such city, on the basis of a division of income,

earnings or profits as herein provided, the commission with like

approval, if in its judgment the public interests so demand, may fix and

determine the route by which such person may construct, maintain and

operate such extension, and with like approval, may authorize such

person to construct, maintain and operate any such extension, and may

with like approval authorize any such person to lay an additional track

on, above, under or contiguous to a portion or the whole of the route of

his railroad within such city and to acquire terminal or other

facilities necessary for the accommodation of the traveling public on

any street except the place known as Battery Park on which such railroad

shall be located. The commission, with like approval, may also

authorize any such person to lay his tracks and operate his railroad to

any terminal within such city, and to transport thereover passengers or

freight or both, and to run either passenger trains or freight trains or

mixed trains thereover. The commission, with like approval, shall fix

and determine the locations and plans of construction of the railroads

upon such facilities, the times within which they shall be respectively

constructed, the compensation to be made therefor to the city by such

person, and such other terms, conditions and requirements as to such

commission and board of estimate with the approval of the mayor may

appear just and proper. Every such determination, authorization and

license shall be made upon the condition that such person, from the time

of the commencement of the operation of any such railroad under such

determination, authorization or license, shall annually pay to such city

a sum or rental which may be a part or proportion of gross or net

receipts, and that the amount of such sum or rental for a period of not

more than twenty-five years, beginning with such operation of any such

railroad shall be prescribed by the commission in such determination,

authorization and license, and that every such determination,

authorization and license shall provide for the readjustment of the

amount of such sum or rental at the expiration of the period for which

it shall be so prescribed and for readjustment from time to time in the

future, to the end of the period of renewal, if any, of the amount of

such annual payment at intervals each of not more than twenty years.

Such determination, authorization or license may provide that for the

whole or any portion of the life of the grant in lieu of such annual

rental the gross or net receipts derived from the operation of such

railroad owned, operated or to be operated by such person within the

limits of such city, and from the operation of such connecting or

extending facilities may be combined, and that the city may receive as

such compensation at intervals named a specified part or proportion of

the income, earnings or profits of the railroad, and the facilities

whose receipts are so combined or of those and any other railroads which

may be operated in connection therewith in like manner, which part or

proportion may be deferred to a previous distribution to such person,

which distribution may be cumulative. In such case such determination,

authorization or license may apportion out of the amount so to be

received by the city and shall specify a portion thereof which shall be

deemed to be the rental for the use of such facilities. Such

determination, authorization or license shall also provide for

determining the amount of the income, earnings or profits of the

railroad within the limits of the city and of the facilities whose

receipts are so combined. It may also provide for readjustment of the

proportion which the city shall receive or of the portion thereof which

shall be deemed to be the rental for the use of such facilities at

specified intervals. In addition, it may prescribe a method of

determining by arbitration or by the court the amount which the city

shall receive as its proportion of such income, earnings or profits or

as such rental upon any such readjustment thereof. Such determination,

authorization or license shall contain a reservation to the city of the

privilege, upon giving a specified notice, to terminate the franchise,

right or authority granted under this section as to all, and, if deemed

advisable, as to any specified portion of such facilities, and to

purchase and take the plant and property as defined in the grant at any

time after the expiration of ten years from the date when operation of

any part of such facilities or of such specified portion thereof shall

actually begin, upon paying an amount for such plant and property as

property, excluding any value for the franchise, right or authority,

which amount shall not exceed actual cost as defined in the grant of

such plant and property plus fifteen per centum thereof. Such amount

shall decrease under provisions of the grant as the franchise continues,

so that at the end of the full term of the grant or at the end of a

period specified therein, no amount shall be paid except for

betterments, additions, improvements and additional equipment as

hereinafter provided. The grant shall provide a method of ascertaining

the amount to be paid for such plant and property on termination by the

city of such franchise, right or authority and for the betterments,

additions, improvements and additional equipment at the end of the full

term of the grant. The grant may provide for determining, from time to

time in default of agreement by arbitration or by the court, a valuation

of such plant and property or any part or portion thereof for any

purpose under such grant. Such determination, authorization or license

may also make suitable provision to the end that if the city, after so

terminating such franchise, right or authority or at the end of the full

term of the grant shall propose to give a new franchise, right or

authority in the enjoyment of which such plant and property or any part

thereof may be utilized, the title to and possession of such plant and

property or any part thereof may be transferred directly to the grantee

of any such new franchise, right or authority when such new grantee

shall pay the amount so required. In the case of additional track added

to any elevated rapid transit railroad, however, the determination,

authorization or license may provide that such privilege of the city to

terminate the franchise, right or authority therefor and to purchase and

take the plant and property shall not be for railroad transit operation

either by the city or by any other party, and shall be without prejudice

to the rights of such person in the lines of such existing elevated

railroad, and may make adequate provision for the protection of such

rights. The commission, with like approval may authorize the re-location

of any devices and appurtenances of such person in any street in which

they exist, any such re-located structure to be held under all the terms

and privileges of the original franchise.

b. A certificate shall be prepared by the commission, attested by its

seal and the signature of its presiding officer, setting forth in detail

the action taken by the commission with respect to such connecting or

extended facilities, and the terms, conditions and requirements

aforesaid, including provisions as to such annual payments and the

future readjustments thereof. A like certificate shall be prepared in

like manner upon every modification of the terms of the contract as

provided in this chapter. Every such certificate shall prescribe the

terms and conditions of the readjustments of such annual payments and

may provide for the determination of such amount upon such readjustments

by arbitration or by the supreme court. Such certificate shall be

delivered to such person upon the receipt by such commission of a

written acceptance of such terms, conditions and requirements, duly

executed by such person so as to entitle it to be recorded.

c. Such certificate shall be filed in the office of the secretary of

state, and a duly certified copy thereof shall be filed in the office of

the clerk of each county to which such privileges granted hereunder

pertain, and thereupon, and upon fulfillment, by such person so far as

it relates to such facilities, of such of the requirements and

conditions as are necessary to be fulfilled in such cases, under section

seventeen of article three of the constitution. Upon fulfillment by such

person of such other terms, conditions and requirements enumerated in

such certificate, as the commission may require to be fulfilled as a

condition precedent to commencing such work, such person shall in such

cases possess in addition to existing franchises all the powers

conferred by this chapter upon corporations with respect to his

railroads authorized to be constructed as aforesaid. When any

facilities, shall be so fixed and determined, and a certificate as

aforesaid shall have been duly filed, such person may construct them

with all the rights, and with like effect as though they had been a part

of the original route of his railroad then in actual operation or in

process of construction. A franchise, right or authority shall not be

granted under this section to extend any railroad, make any connections,

lay any additional track or acquire any terminal or other facilities for

a longer period than the unexpired term of the original grant, franchise

or contract of the railroad and any renewal thereof contained in such

contract to which such facilities are added. Any such franchise, right

or authority granted hereunder shall also be subject to be terminated by

the city in like manner and under the same terms and conditions and at

the same time as may be provided in such original grant for the

termination or taking by the city of that grant if provision therefor be

made.

d. The certificate prepared by the commission as aforesaid when

delivered and accepted by such person shall be deemed to constitute a

contract between such city and such person according to the terms of

such certificate. Such contract shall be enforceable by the commission

acting in the name of and in behalf of such city or by such person

according to the terms thereof, but subject to the provisions of this

chapter. The terms of such contract, from time to time with the consent

of such person, may be modified by the commission. In the case of any

grant under this section for the extension of any railroad or the

making, laying or acquisition of facilities under the provisions of this

section, the commission may make provision as a condition of such grant

for the termination by the city of the original grant or franchise or

contract, for the railroad to which such facilities are to be added and

for the taking over at the same time of the plant and property of the

grantee or holder of such original franchise or contract suitable to and

used for the purpose of such original grant or contract in connection

with the termination of the franchise, right or authority granted under

this section, upon giving a specified notice and paying an amount for

such plant and property, as property, excluding any value for the

original franchise or contract, which amount shall not exceed actual

cost of such plant and property plus fifteen per cent. thereof. Such

amount shall decrease under the provisions of the grant made hereunder

as the franchise or contract continues, so that at the end of the grant

or contract no amount shall be paid except for equipment as defined in

the grant. The grant shall provide a method of ascertaining the amount

to be paid for such plant and property on termination by the city of

such original franchise or contract or for equipment at the end of the

full term thereof. The grant may provide for determining from time to

time in default of agreement by arbitration or by the court a valuation

of such plant and property or any part or portion thereof for any

purpose under such grant. The grant in such case may also make suitable

provision to the end that if the city shall after so terminating such

original grant or franchise or at the end of the full term thereof

propose to grant a a new franchise, right or authority in the enjoyment

of which such plant and property or any part thereof may be utilized,

the title to and possession of such plant and property or any part

thereof may be transferred directly to the grantee of any such new

franchise.

e. But the construction and operation of such facilities are hereby

authorized only upon condition that the consent of the owners of

one-half in value of the property bounded on, and the consent also of

the board of estimate and of the mayor be first obtained, or in case the

consent of such property owners cannot be obtained, the appellate

division of the supreme court in the department in which they are

proposed to be constructed, upon application, in the same manner, and on

the same notice specified in section twenty-one of this chapter, may

appoint three commissioners who shall determine after a hearing of all

the parties interested whether such facilities ought to be constructed

or operated, and their determination, confirmed by the court, may be

taken in lieu of the consent of the property owners.

f. Every such certificate granting any franchise, right or authority,

as aforesaid, except for additional track added to any elevated rapid

transit railroad, shall provide that upon the expiration of a period

fixed therein the franchise shall end and that upon such termination

thereof all the rights of property of the grantee in the streets shall

cease and terminate without compensation and shall further provide that

upon such expiration of such franchise, right or authority the plant and

property together with the appurtenances thereto, of the grantee,

constructed pursuant to such certificate, except betterments, additions,

improvements and additional equipment as defined in the grant, shall

become the property of the city without further or other compensation to

the grantee; and that such betterments, additions, improvements and

additional equipment shall be and become the property of the city on

paying the grantee the amount ascertained as provided pursuant to such

certificate. The provisions of this section shall apply to any railroad

constructed, constructing or contracted for under the provisions of

section thirty-one of this chapter and to any person constructing or

operating any such railroad.