Section 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.