Section 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.