§ 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.