2006 New York Code - Transit Projects.

 
    §  1207-m.  Transit projects. 1. The term "transit project" as used in
  this section shall have the meaning given to such term from time to time
  in section twelve hundred sixty-six-c of this article. The provisions of
  this section shall be controlling and the authority and its subsidiaries
  shall have the powers  provided  in  this  section  notwithstanding  any
  contrary  provision  of  this  title  or of local law or of any lease or
  other agreement with the city.
    2. (a) The authority is hereby authorized to request the  metropolitan
  transportation  authority  to  undertake  any  transit  project  and the
  authority and its designated subsidiaries are each hereby authorized (i)
  to enter into agreements with the metropolitan transportation  authority
  concerning  transit  projects;  (ii) to acquire in its own name by gift,
  purchase or condemnation any real or personal property (or any  interest
  therein)  which  is  needed  or  useful  for  or in connection with such
  project, and to surrender the use, occupancy, control or  possession  of
  or to transfer the same, or any other such real or personal property (or
  any  interest  therein)  which it owns, leases, operates or controls, to
  the metropolitan transportation authority  or  its  designee;  (iii)  to
  accept  a transfer, transfer back, lease or sublease of any such project
  or part thereof upon its  completion;  and  (iv)  to  make  its  agents,
  employees  and  facilities  available to the metropolitan transportation
  authority in connection therewith.
    (b) The authority  and  its  subsidiary  corporation  is  each  hereby
  authorized  to  sell  or transfer, without regard as to how or from whom
  acquired, all or part of its interest in any equipment which  is  deemed
  to  be a mass commuting vehicle under the United States internal revenue
  code or the regulations thereunder, including, without  limitation,  any
  of  the  same  obtained as transit projects or obtained from or financed
  with money received from the Triborough bridge and tunnel authority, for
  such consideration and on such  terms  or  conditions  as  it  may  deem
  appropriate, and to obtain a lease from the transferee on such terms and
  conditions  and  for  such period as it may deem appropriate pursuant to
  which it may operate,  use,  control  or  possess  such  mass  commuting
  vehicle  in  furtherance  of the statutory purposes of the authority and
  its subsidiaries, provided (i) such lease  contains  an  option  to  the
  authority  or  its  subsidiary corporation to repurchase its interest at
  the expiration of the scheduled lease term  for  nominal  consideration,
  and  (ii) the aggregate of the regularly scheduled rental payments which
  the authority  or  its  subsidiary  corporation  is  obligated  to  make
  pursuant to such lease during each twelve month period of the lease term
  shall  not  exceed the aggregate amount receivable, whether by principal
  or interest, by the authority or its  subsidiary  corporation  from  its
  transferee  during  each such twelve month period. Without limitation of
  the foregoing, any lease entered into pursuant hereto may  also  contain
  provisions  requiring  the  authority  or  its subsidiary corporation to
  indemnify the transferee  for  any  loss  resulting  from  the  loss  or
  destruction  of  any mass commuting vehicle which is the subject of such
  lease, or any  loss  arising  out  of  any  misrepresentation,  act,  or
  omission  of  the  authority  or  its subsidiary in connection with such
  lease, and requiring the authority  or  its  subsidiary  corporation  to
  undertake to replace, repair or restore any such mass commuting vehicle,
  but  such  obligations  shall  not  be deemed regularly scheduled rental
  payments for purposes of the preceding  sentence.  Rental  payments  and
  other  payments  or  costs  incurred  by the authority or its subsidiary
  corporation in discharge of its obligations under any lease entered into
  as hereinabove provided shall  not  be  deemed  capital  costs  for  the
  purposes  of  section  twelve hundred three or twelve hundred three-a of
  this title, and the considerations received  by  the  authority  or  its
  subsidiary  corporation in connection with any transactions entered into
  pursuant to the authorization of this paragraph may be expended free  of
  any  restriction  set  forth  in  subparagraph  (ii) of paragraph (b) of
  subdivision  one  of section twelve hundred three or in paragraph (c) of
  subdivision five of section twelve hundred three-a of this title.
    (c) Neither the authority nor its  subsidiary  shall  enter  into  any
  transaction  authorized  by paragraph (b) of this subdivision unless the
  following standards and procedures have been met:
    (i) notice of intention to negotiate shall be published  in  at  least
  one newspaper of general circulation, and a copy thereof shall be mailed
  to all parties who have requested notification from the authority or its
  subsidiary  to  engage  in transactions of this type.  Such notice shall
  describe the nature of the proposed transaction and the factors  subject
  to negotiation, which shall include, but not be limited to, the price to
  be paid to the authority or its subsidiary;
    (ii)  the  authority  or  its  subsidiary  shall  negotiate with those
  respondents whose response complies with the requirements set  forth  in
  the notice;
    (iii)  the  board  of the authority or its subsidiary shall resolve on
  the basis of particularized findings relevant to the factors  negotiated
  that such transaction will provide maximum available financial benefits,
  consistent with other defined objectives and requirements.
    (d)  The  authority  and its subsidiary shall provide to the governor,
  the temporary president of the senate, the speaker of the assembly,  the
  minority  leader  of the senate and the minority leader of the assembly,
  notice of each lease entered into pursuant  to  paragraph  (b)  of  this
  subdivision  and supporting documentation of compliance by the authority
  and its subsidiary with subparagraphs (i), (ii) and (iii)  of  paragraph
  (c) of this subdivision.
    (e)  Paragraphs  (c)  and (d) of this subdivision shall be of no force
  and effect with respect to any lease transaction entered  into  pursuant
  to  a  commitment  approved  prior  to  January  first, nineteen hundred
  eighty-five by the board of the authority or its subsidiary or the board
  of the metropolitan transportation authority.
    3.  The  authority  and  its  designated   subsidiaries   are   hereby
  authorized,  in  connection with any transit project, to pay or agree to
  pay, in a manner  and  on  terms  and  conditions  satisfactory  to  the
  metropolitan  transportation  authority, any portion of the costs to the
  metropolitan transportation authority of such transit  project  and  the
  financing  thereof  which is not paid to the metropolitan transportation
  authority from any federal, state or local aid or assistance or from any
  other  moneys  made   available   or   payable   to   the   metropolitan
  transportation authority by others for such project.
    4.  (a) Such agreements with the metropolitan transportation authority
  may, without limitation, contain provisions obligating the authority  or
  its designated subsidiary to:
    (i)  issue  its  notes  or  bonds,  or  execute and deliver its lease,
  sublease and other  such  contractual  obligations,  in  payment  for  a
  transfer,  lease  or  sublease  of  a  transit  project  to any of them,
  provided, however, that in no event shall the aggregate principal amount
  of all notes and bonds together with the capitalized value of all lease,
  sublease and other such contractual obligations, exceed the sum  of  one
  billion  six hundred million dollars, excluding from such limitation (A)
  the principal amount of any bonds or  notes  of  the  authority  to  the
  extent  the  amount thereof is paid, is payable or has been agreed to be
  paid by the federal government or any agency or instrumentality  thereof
  to  the  authority  or  to  the  holders of such bonds or notes, (B) the
  principal amount of any bonds or notes of the authority issued to refund
  or otherwise repay other obligations issued for such  transit  projects,
  (C) the principal amount of any bonds or notes and the capitalized value
  of  any  lease,  sublease  or  other such contractual obligation, to the
  extent such obligations are paid or agreed to be paid, subject to annual
  appropriation,  under  service  contracts  issued  by  the  state to the
  metropolitan transportation authority for the benefit of  the  authority
  or its subsidiaries pursuant to the provisions of section sixteen of the
  transportation  systems  assistance  and financing act of 1981, or under
  any similar contract of the metropolitan transportation authority or the
  authority with any other governmental entity  for  the  benefit  of  the
  authority  or its subsidiaries, (D) the principal amount of any bonds or
  notes  of  the  authority  issued  to  the  metropolitan  transportation
  authority  in  connection  with  the funding of any debt service reserve
  fund required by  any  resolution  of  the  metropolitan  transportation
  authority  pursuant  to which special obligation bonds of that authority
  to fund a transit project were issued, and (E) a principal amount of any
  bonds or notes of the authority equal to  the  amount  of  any  original
  issue discount from the principal amount of the special obligation bonds
  or   notes  issued  by  the  metropolitan  transportation  authority  in
  connection with the financing of a transit project by that authority;
    (ii) give security for  the  payment  of  such  notes,  bonds,  lease,
  sublease  or other contractual obligations, including a pledge of all or
  any part of its revenues or  other  moneys,  which  pledge  may  contain
  covenants  with  respect  to  the charging and fixing of fares, fees and
  rentals, the use and disposition of such fares, fees, rentals and  other
  charges, and the setting aside of reserves therefrom.
    (b)  Such  agreements,  and any notes, bonds, lease, sublease or other
  contractual obligations issued or entered into by the authority  or  its
  designated  subsidiary  pursuant  thereto, may, without limitation, also
  contain provisions as to:
    (i) limitations with respect to the use  and  disposition  of  transit
  projects and with respect to any other transit facilities;
    (ii)  limitations  on  the issuance of additional bonds, notes, lease,
  sublease or other contractual obligations, the terms upon which they may
  be secured and the funding or refunding thereof;
    (iii) with respect to bonds or notes, vesting in a trustee or trustees
  such property rights, powers and duties in trust as  it  may  determine,
  which  rights,  powers  and duties may include, but shall not be limited
  to, those set forth in section twelve hundred seven-h of this title;
    (iv) defining the acts or omissions to act which  shall  constitute  a
  default and providing rights and remedies in the event of default;
    (v)  any  other  matters, of like or different character, which in any
  way affect the security or protection of the metropolitan transportation
  authority or any lessor; and
    (vi) consenting to the extending or  assignment  by  the  metropolitan
  transportation  authority  or by any lessor to the holders of any of its
  bonds, notes or lease obligations of all of the benefits and  rights  of
  the  metropolitan transportation authority or of such lessor provided by
  any such agreement or other instrument.
    (c) The term "revenues" as used in this subdivision shall include  all
  those  moneys  referred to in section twelve hundred of this article, as
  well  as  all  operating  subsidies  provided  by  any  public   benefit
  corporation or by any governmental entity, federal, state or local.
    (d)  The  term  "capitalized  value" as used in this subdivision shall
  mean the present value of all future payments required  under  a  lease,
  sublease  and  other such contractual obligation discounted at a rate of
  interest determined on the basis of the net interest cost  of  the  last
  metropolitan  transportation authority's special obligation bonds issued
  prior to the execution of any such lease, sublease or other  contractual
  obligation  or,  if  no such bonds have been issued, on the basis of the
  net interest cost of the last bonds issued by the Triborough bridge  and
  tunnel  authority, issued in payment for the transfer, lease or sublease
  of any such transit projects.
    5. It is the intention hereof that, subject to  such  agreements  with
  bondholders  or noteholders as may then exist, any pledge of revenues or
  other moneys made by the authority or its subsidiaries  shall  be  valid
  and  binding from the time when the pledge is made; that the revenues or
  other moneys so pledged and thereafter received by the authority or  its
  subsidiaries  shall  immediately  be  subject to the lien of such pledge
  without any physical delivery thereof or further act, and that the  lien
  of  any  such  pledge  shall be valid and binding as against all parties
  having claims of any kind in tort, contract  or  otherwise  against  the
  authority  or its subsidiaries irrespective of whether such parties have
  notice thereof. Neither the agreement nor any other instrument by  which
  a pledge is created need be recorded.
    6.  So long as the authority or any of its subsidiaries shall have any
  outstanding and unpaid obligation in connection with a transit  project,
  the authority and such subsidiaries shall have the power at all times to
  fix or adjust the rate or rates of fares, fees, rentals or other charges
  to  be  charged for the use of their transit facilities as may, together
  with all other lawfully available moneys, be necessary in their judgment
  to produce sufficient revenues to  pay  such  obligations  as  the  same
  become  due, in addition to paying as the same shall become due expenses
  of  operation  of  the  transit  facilities  and  satisfying  all  other
  obligations   of  the  authority  and  such  subsidiaries.  No  acts  or
  activities taken or proposed to be taken by the  authority  pursuant  to
  this  subdivision  shall  be  deemed to be "actions" for the purposes or
  within the meaning of article eight of  the  environmental  conservation
  law.
    7.  (a)  In  connection  with  (i)  the lease between the city and the
  authority dated June first, nineteen hundred fifty-three, and  (ii)  the
  lease  between  the  city  and  the  Manhattan and Bronx surface transit
  operating authority dated March twentieth,  nineteen  hundred  sixty-two
  (such  leases,  as  heretofore supplemented, amended or renewed, and the
  tenancies originally created thereby, being referred to in this  section
  as "the existing leases"), the city, acting either by the mayor alone or
  by  resolution of the board of estimate, or by instruments authorized by
  such  resolution,  and  the  authority  are  authorized  to  enter  into
  agreements  for  renewal or extension of the existing leases, or for new
  leases, for such terms of years and upon such other terms and conditions
  as the parties thereto shall agree and the  metropolitan  transportation
  authority  shall  approve,  provided  that  under the terms thereof, the
  rights, privileges and obligations of the parties are  not  inconsistent
  with  the provisions of, or in derogation of the powers of the authority
  all as provided in title nine of  article  five  of  this  chapter,  and
  provided  further that such agreements shall in no way impair the rights
  or powers of the authority or the Manhattan and  Bronx  surface  transit
  operating  authority to fulfill the terms of any contract made by either
  of them with the holders of any  of  their  then  outstanding  bonds  or
  notes,  and  such  agreements  shall provide that such leases may not be
  terminated or permitted to expire or be amended in any way  inconsistent
  with  the  provisions  of  any agreement, bond, note, lease, sublease or
  other contractual  obligation  given  or  made  by  either  of  them  in
  connection with a transit project. Neither the provisions of section one
  hundred  ninety-seven-c  of  the  New  York  city charter, relating to a
  uniform land use review procedure, nor the provisions of any other local
  law of like or similar import shall apply to the renewal or extension of
  the existing leases or to the making of new leases as herein provided.
    (b)  Notwithstanding the provisions of any other law, general, special
  or local, or the provisions of the existing leases,  if  either  of  the
  agreements  authorized by paragraph (a) above is not entered into, but a
  note, bond, lease,  sublease  or  other  contractual  obligation  for  a
  transit project has been issued or entered into, then (i) no party to an
  existing  lease  may terminate the same, serve any notice of termination
  pursuant thereto, exercise any option to terminate reserved  therein  or
  permit  the expiration thereof, (ii) the city shall not in any way limit
  or disturb any right of the tenant to use, occupy, control  and  possess
  any  of  the properties, facilities or revenues which are the subject of
  such existing lease, and (iii) the city shall not seek to  enforce  such
  existing lease in any way inconsistent with or contrary to the manner in
  which  such  existing lease had been administered prior to the enactment
  of this section or inconsistent with or contrary to the interests of the
  metropolitan transportation authority or any lessor under any agreement,
  notes, bonds, lease, sublease or other contractual  obligations  of  the
  authority  or  any  of  its  subsidiaries  issued  or  entered  into  in
  connection with a transit project (and to the extent the  provisions  of
  such leases conflict at any time or in any manner with the provisions of
  any  such  note,  bond, lease, sublease or other contractual obligation,
  the provisions of such note, bond, lease, sublease or other  contractual
  obligation shall be controlling and conflicting provisions of the leases
  with  the  city shall be disregarded), unless prior thereto the city has
  satisfied all of such outstanding  notes,  bonds  or  other  contractual
  obligations  and  provided  for  the termination of all such agreements,
  leases and subleases, all in accordance with their terms.  If and to the
  extent moneys are paid by the city to the authority or its  subsidiaries
  to   satisfy   their  obligations  to  the  metropolitan  transportation
  authority under such instruments, the authority  and  such  subsidiaries
  shall  remit  such  moneys to the metropolitan transportation authority,
  which shall, in turn, apply the same to the satisfaction and termination
  of its own notes, bonds and leases issued or entered into in  connection
  with a transit project in accordance with their terms.
    (c)  Upon  termination or expiration of a new lease or of a renewed or
  extended  existing  lease  as  permitted  in  paragraph  (a)   of   this
  subdivision,  or  upon satisfaction of the requirements of paragraph (b)
  of this subdivision, title to any real  or  personal  property  (or  any
  interest therein) constituting all or any part of a transit project then
  vested  in  the authority or any of its subsidiaries or the metropolitan
  transportation authority pursuant to  the  provisions  of  this  chapter
  shall  be  transferred  without  further consideration or payment to the
  city.
    8. The state of New York does hereby pledge  to  and  agree  with  the
  authority  and  its  subsidiaries  and  the  metropolitan transportation
  authority and the holders of bonds or notes or lease, sublease or  other
  contractual  obligations  issued  by  any  of  them in connection with a
  transit project or in connection with the transfer of  the  interest  of
  any  of  them  in  and  the  lease  from  the transferee of any property
  furnished to it pursuant to chapter  twelve  of  the  laws  of  nineteen
  hundred  seventy-nine  or  section  fifteen  of  chapter  three  hundred
  fourteen of the laws of nineteen hundred eighty-one,  or  in  connection
  with  any  transaction  entered  into  pursuant  to the authorization of
  paragraph (b) of subdivision two of this section, that  the  state  will
  not  limit  or alter the denial of authority under subdivision eleven of
  this section, or the rights and powers vested in the authority  and  its
  subsidiaries by this title to fulfill the terms of any agreement made by
  any  of them with the metropolitan transportation authority or with such
  holders, or in any way impair  their  rights  and  remedies  until  such
  agreements,  bonds,  notes,  and obligations, together with the interest
  thereon  and  all  costs  and  expenses in connection with any action or
  proceedings by or on behalf of the metropolitan transportation authority
  or such holders, are fully met and discharged.  The  authority  and  its
  subsidiaries  are  each  authorized  to  include  this  pledge  and  the
  agreement of the state in any agreement with the holders of  such  bonds
  or  notes  or  lease, sublease or other obligations and in any agreement
  with the metropolitan transportation authority  relating  to  a  transit
  project which may extend the same to the holders of its bonds, notes and
  lease obligations.
    9.  The provisions of this section and of all agreements undertaken by
  the authority or any of its subsidiaries in accordance  therewith  shall
  in  all  respects  be  subject  to  the  rights  of  the  holders of any
  outstanding bonds or notes of the authority and its subsidiaries.
    10. In connection with the negotiation, award  and  implementation  of
  contracts  of the authority relating to transit projects, the provisions
  of paragraphs (a), (b), (c) and (d) of subdivision thirteen  of  section
  twelve  hundred sixty-six-c of this article shall apply to the authority
  as if it were the "authority"  referred  to  therein,  and  the  officer
  designated  by  the  metropolitan  transportation  authority pursuant to
  paragraph (e) of such  subdivision  shall  perform  the  duties  therein
  described with respect to such contracts of the authority.
    11.  So  long  as  the  authority  or  any  of  its  subsidiaries,  or
  metropolitan transportation authority, shall have outstanding any notes,
  bonds, lease, sublease or other contractual  obligations  authorized  by
  this  section  or  section  twelve hundred sixty-six-c or twelve hundred
  sixty-nine of this article, or which have been  issued  or  incurred  in
  connection  with  the transfer of the interest of any of them in and the
  lease from the transferee of any property furnished pursuant to  chapter
  twelve  of  the laws of nineteen hundred seventy-nine or section fifteen
  of chapter three hundred  fourteen  of  the  laws  of  nineteen  hundred
  eighty-one, neither the authority nor any of its subsidiaries shall have
  the  authority  to  file  a voluntary petition under chapter nine of the
  federal bankruptcy code, or such  corresponding  chapter,  chapters,  or
  sections as may, from time to time, be in effect, and neither any public
  officer nor any organization, entity or other person shall authorize the
  authority or any of its subsidiaries to be or become a debtor under said
  chapter  nine or said corresponding chapter, chapters or sections during
  any such period.
    12. A project financed by the authority's issuance of its bonds, notes
  or other obligations, pursuant to subdivision one-a  of  section  twelve
  hundred  seven-b  of  this title shall be deemed to constitute a transit
  project for the purposes of this section and any  notes,  bonds,  lease,
  sublease  or  other contractual obligations with respect to such project
  shall, for purposes of this section, be deemed to have  been  authorized
  by  this  section;  provided,  however,  that  such project shall not be
  deemed to constitute part of any capital program plan for  the  purposes
  of  section  twelve  hundred  sixty-nine-b of this article nor shall the
  principal amounts of any bonds or notes, nor the  capitalized  value  of
  any  lease,  sublease, or other contractual obligation of the authority,
  issued or entered into by the authority  pursuant  to  such  subdivision
  one-a,  be  included  in any computation pursuant to subdivision four of
  this section.