N.Y. Transportation Law § 304: Project grant procedure

§ 304. Project grant procedure. State moneys may be expended for any

municipal project pursuant to a contract entered into by the

commissioner, in the name of the state, and the municipal corporation

undertaking such project. Any such contract may include such provisions

as may be agreed upon by the parties thereto, and shall include, in

substance, the following provisions:

a. An estimate of the reasonable cost of the project as determined by

the commissioner.

b. An agreement by the commissioner to pay to or on behalf of the

municipal corporation, following completion of the project, or during

the undertaking thereof, in the form of progress payments, as may be

agreed upon by the parties and subject to the rules and regulations of

the commissioner, the state share of the project cost as he may

determine in accordance with section three hundred of this article.

c. An agreement by the municipal corporation:

(1) To proceed expeditiously with, and complete, the project in

accordance with plans approved by the commissioner;

(2) To commence and continue operation of the project on completion of

the project, and not to discontinue operation or dispose of the project

without the approval of the commissioner;

(3) To provide for the payment of the municipal corporation's share of

the cost of the project, and

(4) To include in its planning for the project, to the extent mutually

deemed appropriate, consideration and planning for joint development as

defined in section fourteen-d of the transportation law relating to the

environment of the area in which the project is to be constructed.

d. A provision that, in the event that federal assistance which was

not included in the calculation of the state payment pursuant to section

three hundred of this article becomes available to the municipal

corporation, the amount of the state payment shall be recalculated with

the inclusion of such additional federal assistance and the municipal

corporation shall either (1) pay to the state the amount by which the

state payment actually made exceeds the state payment determined by the

recalculation or, (2) if such additional federal assistance has not been

received by the municipal corporation, authorize the state to receive

such amount from the federal government and to retain an appropriate

amount thereof. The commissioner may adopt rules and regulations

governing the making and enforcing of contracts pursuant to this

subdivision. Contracts entered into pursuant to this subdivision shall

be subject to approval by the state comptroller, the director of the

budget and by the attorney general as to form. All payments by the state

pursuant to such contracts shall be made after audit by and upon the

warrant of the comptroller on vouchers approved by the commissioner.