§ 33 — Acquisition of railroads or interests therein

§ 33. Acquisition of railroads or interests therein. a. The board of\ntransportation, with the approval of the board of estimate and the\nmayor, may purchase, or acquire an option to purchase from time to time,\nfor such price and upon such terms and conditions as may be agreed upon,\nand acquire by conveyance or grant to such city, to be delivered to such\nboard of transportation, any line of railroad, or part of any such line\nand/or equipment therefor already constructed or provided or in process\nof construction or provision, of the character which might be\nconstructed or provided as a railroad and/or equipment under the\nprovisions of this chapter, and which in the opinion of the board of\ntransportation it is for the interest of the public and the city to\nacquire for rapid transit purposes. The payment for such line of\nrailroad, or a part thereof, and equipment may be made out of funds made\navailable pursuant to the local finance law, or by the application of\nrevenues derived from the operation of any such line alone or in\nconjunction with other railroads owned by such city, or the payment may\nbe made partly by one method and partly by the other method as the board\nof transportation, with the approval of the board of estimate and the\nmayor, shall determine. The moneys necessary to be paid for any such\nrailroad and equipment purchased, together with all expenses necessarily\nincurred in connection therewith shall be raised through the application\nof revenues from operation as above provided or shall be raised pursuant\nto the local finance law. The method of payment for the line to be\npurchased shall be described and specified in a form of proposed\ncontract for purchase and sale which shall be submitted for approval to\nthe board of estimate and the mayor by the board of transportation. The\nform of proposed contract may incorporate such terms and conditions as\nprovide for a deferred payment of the agreed purchase price. Any such\nrailroad or equipment acquired in accordance with the provisions of this\nsection, and any railroad acquired in accordance with the provisions of\narticle eight of this chapter or former article seven of the public\nservice law, shall be deemed to have been constructed or provided for at\nthe expense of the city within the meaning of this chapter and the cost\nof acquisition thereof shall be deemed and considered as the cost of\nsuch construction or provision, in like manner as though such railroad\nor equipment had been constructed or provided pursuant to the provisions\nof this chapter.\n b. Unless all the consents to the construction and operation of any\nsuch railroad so purchased required by article three, section seventeen,\nof the constitution shall have been obtained prior to such purchase, the\nboard of transportation shall proceed to secure such consents as\nrequired by section twenty-one of this chapter. As soon as such consents\nshall have been obtained, the board of transportation for and on behalf\nof the city, with the approval of the board of estimate and the mayor,\nmay enter into a contract with any person for the equipment, in whole or\nin part, at the cost and expense of such person, and for the maintenance\nand operation of any such railroad so purchased, either alone or in\nconjunction with other railroads then owned or thereafter constructed or\nacquired by such city, for a term of years to be specified in the\ncontract, not to exceed twenty-five years. Such contract may contain a\ncovenant for one renewal of not to exceed twenty-five years, unless the\npurchase price or some part thereof is to be paid out of the revenues as\nprovided in subdivision a of this section, in which event such contract\nmay be for a longer period than twenty-five years but shall provide for\nits termination by such city, at its option, on one year's notice given\nat any time or after the expiration of any specified period not\nexceeding ten years, upon the payment by or for such city of the amount\nof any balance of such purchase price then remaining unpaid and the\nunamortized portion of the cost and expense of any equipment constructed\nor provided at the cost of such person after the date of such contract.\nAny such contract providing for the payment of the purchase price of any\nsuch railroad or equipment wholly or in part out of the revenues shall\nprovide for the application of revenues derived from the use or\noperation of the railroads included therein and the order of priority of\nsuch application. Such contract shall provide for the payment out of\nsuch revenues of current annual interest charges at a rate of not\nexceeding six per cent per annum, and current annual amortization\ncharges at a rate to be specified, on the amount of the balance of the\npurchase price remaining unpaid, of such railroad or equipment so\npurchased by such city, and on the actual cost of any equipment,\nconstructed or provided by such person after the date of such contract.\nEvery such contract shall contain such terms and conditions as to the\nrates of fares to be charged and the character of services to be\nfurnished and the rental to be paid, or the terms upon which such\nrailroads are to be operated, as the board of transportation shall deem\nto be best suited to the public interests and as the board of estimate\nand the mayor shall approve. Any domestic railroad corporation owning\nany line of railroad which the city is authorized by this section to\npurchase and acquire as above provided, with the consent of the holders\nof record of at least two-thirds of its outstanding shares of capital\nstock entitled to vote thereon, given as provided in section one hundred\nforty-eight of the railroad law, may transfer and convey to such city\nsuch railroad and equipment or any part thereof, and the devices and\nappurtenances and franchises thereof or used in connection therewith,\nsubject, however, to the rights of appraisal of the shares of any\ndissenting stockholder as provided in section one hundred sixty-one of\nthe railroad law.\n c. If a contract has been made for equipment, in whole or in part,\nmaintenance and operation of a railroad constructed or to be constructed\nby the city and owned by the city upon any route established and\nconsented to as provided in this chapter, which contract provides for\nconstruction by the city and equipment, maintenance and operation by the\ncontractor of branches and extensions of such railroad and additional\nlines also to be owned by the city upon terms and conditions as provided\nin such contract, the board of transportation in lieu of constructing a\nbranch or extension or an additional line with the consent of the board\nof estimate and of the mayor may acquire by conveyance or grant to such\ncity to be delivered to such board of transportation the right to\nconnect such railroad with and to operate within the city over any track\nof a railroad already constructed or in process of construction and\nwhich right in the opinion of the board of transportation it is for the\ninterest of the public and the city to acquire for rapid transit\npurposes in lieu of constructing such branch, extension or such\nadditional lines. The grant shall contain such terms and conditions as\nto the compensation to be paid for such right, the term during which it\nshall be enjoyed, which with any renewal shall not be more than\ntwenty-five years, and such other terms and conditions to effectuate the\npurpose of the grant, including the right of revocation upon terms and\nconditions to be specified in such grant, as the board of transportation\nshall deem best suited to the public interest and the board of estimate\nand the mayor shall approve.\n