New York Consolidated Laws, Railroad Law - RRD § 173-b. [Power of cities, towns and villages to grant terminable permits]  1]

Every city, town and village of this state, in addition to such powers as it may have relating to the granting of rights, privileges, franchises, powers or consents to use the streets, roads, highways, avenues, parks or public places for the construction and operation of street surface railroads within its corporate limits, shall have power, subject to the provisions of sections one hundred and seventy-three-a to one hundred and seventy-three-h, both inclusive, of this article, to grant to a duly incorporated railroad corporation of this state, organized to construct, maintain and operate a street surface railroad, a terminable permit to occupy or use any of the streets, roads, highways, avenues, parks or public places of such city, town or village for the construction and operation of a street surface railroad, and to agree upon and contract for the terms and conditions thereof;  provided that no street surface railroad or extensions or branches thereof shall be built, extended or operated unless the conditions set forth in section one hundred and seventy-one of this article have been complied with.