N.Y. RAT Law § 33-A

§ 33-a. Lease by the city of railroad. 1. Such city may lease from any\nrailroad corporation any railroad or steam surface railroad located\nwholly within one county in such city, or may lease from any railroad\ncorporation any part of any railroad or steam surface railroad within\none county in such city substantially all of the lines of which are\nlocated wholly within one county in such city, for a term not exceeding\nten years, with the right of renewal not to exceed ten additional years,\nupon such terms and conditions as to annual compensation to be paid by\nsuch city for such lease and such other terms and conditions as the\nboard of estimate shall deem best suited in the public interest. Payment\nfor such lease may be made out of moneys raised by taxation or out of\nany proceeds arising out of the sale or lease of real property acquired\nby such city for rapid transit purposes.\n 2. The board of estimate may by contract provide for the maintenance\nand operation of such leased railroad, steam surface railroad or part\nthereof by any railroad corporation which in the opinion of such board\nshall be best qualified to fulfill and carry out such contract. Such\ncontract shall contain such terms and conditions as the board of\nestimate shall deem best suited in the public interest.\n 3. Notwithstanding any other provisions of law, such railroad\ncorporation operating such leased railroad, steam surface railroad or\npart thereof shall be subject to the jurisdiction, regulatory powers and\nsupervision of the public service commission.\n