The section, before it was NYC, was the crooked lake canal.
Also, there is a tiny piece of rail intact in Penn Yan, as you cross over the outlet heading towards where Pudgies and the Beverage Baron are now located, if you look down to your right, towards a lumber yard. You can see a piece of rail in the ground that still remains, or at least it did when I was in Penn Yan in June of 2004
Brooks