§ 33-a. Lease by the city of railroad. 1. Such city may lease from any railroad corporation any railroad or steam surface railroad located wholly within one county in such city, or may lease from any railroad corporation any part of any railroad or steam surface railroad within one county in such city substantially all of the lines of which are located wholly within one county in such city, for a term not exceeding ten years, with the right of renewal not to exceed ten additional years, upon such terms and conditions as to annual compensation to be paid by such city for such lease and such other terms and conditions as the board of estimate shall deem best suited in the public interest. Payment for such lease may be made out of moneys raised by taxation or out of any proceeds arising out of the sale or lease of real property acquired by such city for rapid transit purposes.

2. The board of estimate may by contract provide for the maintenance and operation of such leased railroad, steam surface railroad or part thereof by any railroad corporation which in the opinion of such board shall be best qualified to fulfill and carry out such contract. Such contract shall contain such terms and conditions as the board of estimate shall deem best suited in the public interest.

3. Notwithstanding any other provisions of law, such railroad corporation operating such leased railroad, steam surface railroad or part thereof shall be subject to the jurisdiction, regulatory powers and supervision of the public service commission.