Section 1012-A. Emergency contributions to county of Niagara and city of Niagara Falls

1. On June seventh, nineteen hundred fifty-six a collapse  of the rock wall of  the  Niagara  river  resulted  in  the  substantial
  destruction  of  a  hydro-electric power generating plant which annually
  produced more than three billion kilowatt  hours  of  low-cost  electric
  energy,  most  of  which  was  used by industrial plants employing great
  numbers of workers in the city of  Niagara  Falls  and  vicinity.  These
  industries  would  be  forced to curtail their operations drastically or
  abandon them and thousands of jobs would be lost if the industries  were
  not  able  to  obtain  necessary power at high cost on a temporary basis
  from the hydro-electric power commission of Ontario.  This commission is
  using not only Ontario's share of the water of the Niagara  river  under
  the  treaty  signed  on February twenty-seventh, nineteen hundred fifty,
  between the United States and Canada, but  also  a  large  part  of  New
  York's  share  of such water. To provide for the retention and expansion
  of existing industry and the attraction of new  industry  vital  to  the
  economy  of  the  area  and  to  the defense of the United States, it is
  essential that power authority of the state of New York complete a power
  project to utilize all of the waters of the  Niagara  available  in  the
  United  States.  The  destruction  caused  by the rock slide resulted in
  reducing to the extent of some ten million dollars the  total  valuation
  of  real property subject to taxation in the city of Niagara Falls. This
  will result in a temporary tax loss to the county  of  Niagara  and  the
  city  of  Niagara  Falls of approximately seven hundred thousand dollars
  per year with resulting hardship to taxpayers.  An increase in  the  tax
  base  sufficient  to  offset  such  loss  cannot  be brought about until
  industrial activities in the area are expanded and increased through the
  availability of low-cost power from such  new  New  York  hydro-electric
  power project. An emergency justifying financial relief to the county of
  Niagara  and city of Niagara Falls exists and will continue until such a
  project  is  completed.  It  is  recognized  that   public   authorities
  constitute  valuable  governmental  entities  in  the  state, performing
  important functions on a businesslike basis through the use  of  private
  funds borrowed from prudent investors without state or municipal credit,
  and  that  the  integrity  and independence of these authorities must be
  maintained and their present exemption from taxation protected.
    2. Power authority of the state of New York is  hereby  authorized  to
  include  in  financing the cost of its Niagara river project a total sum
  of (1) three million dollars in addition to that otherwise required  and
  to  contribute  such  additional  total  sum  as emergency relief to the
  county of Niagara and city of Niagara Falls on the basis  of  decreasing
  annual  allotments  over  a five-year construction and expansion period;
  such annual allotments shall be allocated for school and other  purposes
  in  the same proportion as other moneys collected as real property taxes
  in such city; and (2) the power authority of the state of  New  York  is
  hereby  authorized to expend the sum of one and one-half million dollars
  for local improvements in the city of Niagara  Falls  incidental  to  or
  reasonably related to the Niagara power project of the authority.