§ 236. Contracts for projects. 1. The commissioner, in the name of the
state, may enter into contracts with municipalities, counties or the
city of New York to undertake rail preservation projects, or local
street or highway projects, and any such municipality, county or the
city of New York may enter into a contract with the commissioner. 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 the municipality, county
or the city of New York during the progress of construction or following
completion of construction as may be agreed upon by the parties, an
amount, not to exceed the total cost of the project or such lesser
amount as may have been established pursuant to section two hundred
thirty-five;

c. an agreement by the municipality, county or city of New York;

(i) to proceed expeditiously with, and complete, the project as
approved by the commissioner,

(ii) to apply for or make reasonable efforts to secure federal
assistance, if any, for the project,

(iii) to secure the approval of the commissioner before applying for
such federal assistance, in order to maximize the amounts of such
assistance received or to be received for all projects in New York
state,

(iv) to provide for the municipality's, county's or city of New York's
share of the cost of the project, if any;

d. A provision that, in the event that federal assistance which was
not included in the calculation of the state payment becomes available
to the municipality, county or city of New York the amount of the state
payment shall be recalculated with the inclusion of such federal
assistance and the municipality, county or city of New York shall pay to
the state the amount by which the state payment actually made exceeds
the state payment determined by the recalculation.

e. In connection with each contract, the commissioner shall keep
adequate records of the amount of the payment by the state and of the
amount of federal assistance, if any, received by the municipality,
county or city of New York. Such records shall be retained by the
commissioner and shall establish the basis for recalculations of the
state payment as required herein.