§ 80. Connecting routes and extension of lines. a. The commission,
from time to time, with the approval of the board of estimate and of the
mayor may grant a right or franchise or enter into a contract, upon
application to such commission of any railroad corporation for the
purpose of constructing and operating a tunnel railroad from an
adjoining state under the North or Hudson or Harlem river to a terminus
within the city; or under the North or Hudson river and thence
transversely across and under the surface of the borough of Manhattan
and thence under the East river by the shortest practicable route; such
railroad to be connected with some trunk line railroad whose terminus is
in this or an adjoining state, thereby forming a continuous line for the
carriage of passengers and property.

b. A similar grant may be made, or a similar contract entered into,
upon the application of a railroad corporation, owning or actually
operating a trunk line railroad whose terminus is within the city, or of
a railroad corporation owning or actually operating, or by the
certificate of the commission required to own or actually operate, a
railroad wholly or partly within such city and engaged or intended, and
in such certificate so recited and required, to be, in interstate
commerce in connection with a trunk line railroad and which shall have,
or be required by such certificate to have a terminus in such city, for
the purpose of constructing and operating a railroad from such terminus
by the shortest practicable route to and under or over the East river or
the North or Hudson river, or the Harlem river, to any point in this or
an adjoining state, or to connect such terminus with the railroad or
terminus of any other such railroad or trunk line railroad in this state
or to straighten or improve the grade or alignment of any such railroad
or more directly connect any points thereon.

c. If and when in the judgment of such commission the public interests
so demand, the commission, with like approval, may fix and determine the
route by which any such railroad corporation making such application may
so establish and construct or so extend its lines into or within such
city, and may authorize any such railroad corporation to construct and
operate any such railroad or connecting railroad under any streets, and
also in the case of any such railroad or connecting railroad which is,
or by the terms of such certificate is required to be, operated or used
as a part of an interstate trunk line, to construct and operate the same
over and across any such streets, but not over and lengthwise of any
streets, with all necessary devices and appurtenances and with the right
to emerge to the surface upon private lands at the termini, and to
transport over the same passengers or freight or both and to run over
the same either passenger trains or freight trains or mixed trains.

d. The commission, with like approval, shall fix and determine the
locations and plans of construction of the railroad upon such route, the
times within which portions thereof shall be constructed, the
compensation to be made therefor to the city by the railroad corporation
to which the grant shall be made, or with which the contract shall be
entered into, and such other terms, conditions and requirements as to
the commission may appear just and proper. Every such grant shall be
made and every such contract entered into, however, upon the condition
that the railroad corporation to which the grant shall be made or with
which the contract shall be entered into, from the time of the
commencement of the operation of any such railroad, shall annually pay
to such city a sum or rental. 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
grant or contract. Every such grant or contract 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 of the amount of such annual payment at
intervals each of not more than twenty-five years. The grant may also
provide that the city shall have the right after the expiration of a
period fixed in the grant which shall not be more than twenty-five years
from the date on which operation of any portion of such railroad shall
commence to purchase and take the right or franchise so granted and any
tunnel and railroad, thereby authorized, or any portion of such tunnel
and railroad, provided the city shall determine that such tunnel and
railroad or such portion of such tunnel and railroad is necessary or
desirable for use as part of some municipal system of rapid transit to
be owned by the city, upon giving a specified notice and upon payment of
the value of such tunnel and railroad, or portion of tunnel and
railroad, but not including the franchise thereby granted, nor to exceed
the actual cost in money of construction thereof and of property
connected therewith. The grant may provide in default of agreement
thereon for ascertainment and determination by arbitration or by the
court of the amount to be paid by the city therefor. Any certificate
granted by the board of rapid transit railroad commissioners or by the
public service commission before the twenty-sixth day of May, nineteen
hundred nine authorizing the construction and operation of any tunnel
and railroad under the provisions of this section, and any right
theretofore given to the city in or by any such certificate so granted
to purchase and take any tunnel and railroad, or any portion of such
tunnel and railroad shall be deemed to have been authorized, and every
such certificate is hereby ratified and confirmed as to such right given
thereby.

e. 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 and grant made or contract entered into by the
commission with respect to such railroad 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
grant or contract as provided in this chapter. Each 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 railroad corporation upon the
receipt by such commission of a written acceptance of the terms,
conditions and requirements of the grant or contract, duly executed by
such railroad corporation, so as to entitle it to be recorded.

f. 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 in which such railroad is situated, and
thereupon, and upon fulfillment by such railroad corporation, so far as
it relates to such railroad, 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, and upon fulfillment by such
railroad corporation 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
railroad corporation shall in such cases possess in addition to its
already existing franchises all the powers conferred by this chapter
upon corporations with respect to its railroads authorized to be
constructed as aforesaid. When any routes, rights or franchises, shall
be so fixed and determined, and a certificate as aforesaid shall have
been duly filed, such railroad corporation may construct the same with
all the rights and with like effect as though the same had been a part
of the original route of its railroad then in actual operation, or as
may be provided in such certificate, but in every case subject to all
the provisions and conditions of such certificate. Every certificate
prepared by the commission or any of its predecessors as aforesaid when
delivered to and accepted by such railroad corporation, shall be deemed
to constitute a contract between such city and such railroad
corporation, 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 corporation according to the terms
thereof, but subject to the provisions of this chapter. The terms of
such contract, from time to time, with like approval and with the
consent of such corporation, may be modified by the commission.

g. But the construction and operation of such railroad is authorized
only upon the 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 the mayor be first obtained, provided that such board of
estimate and mayor, upon the presentation to them of any such grant or
contract, without requiring the execution of any other agreements than
those herein provided for, shall either approve or disapprove the same.
Every such approval shall be and be deemed to be, free of all
limitations except those contained in this chapter or the constitution.
In case the consent of such property owners can not be obtained, the
appellate division of the supreme court in the department in which such
railroad is 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 parties interested, whether such railroad ought to be
constructed or operated, and their determination, confirmed by the
court, may be taken in lieu of the consent of such property owners.

h. No grant or contract shall be made hereunder affecting in any way
the liabilities and obligations of the grantee or contracting railroad
corporation with reference to taxation for state or local purposes. The
state shall not be liable for injuries to persons or property in
connection with any railroad or other construction which may be
authorized under the provisions of this chapter, nor shall the state be
liable for any damages in any event for any act or omission of the
commission.