[proofplan]
Write $y^s=e^{s\log y}$ and split the proof according to the sign of $\log y$. If $y>1$, close the vertical segment to the left; the exponential factor decays on the far left side, and the pole at $s=0$ contributes residue $1$. If $0<y<1$, close to the right; there is no pole in the rectangle, and the exponential factor decays on the far right side. The boundary case $y=1$ is computed directly from the symmetric principal value of $1/s$.
[/proofplan]
[step:Introduce the meromorphic integrand and its residue at the origin]
Let
\begin{align*}
L := \log y.
\end{align*}
Let $\mathcal{L}^1$ denote one-dimensional Lebesgue measure on $\mathbb{R}$. For each $T>0$, define the symmetric truncation
\begin{align*}
I_T(y,c) := \frac{1}{2\pi i}\int_{c-iT}^{c+iT}\frac{y^s}{s}\,ds.
\end{align*}
Define the [meromorphic function](/page/Meromorphic%20Function)
\begin{align*}
F_y: \mathbb{C}\setminus\{0\} &\to \mathbb{C} \\
s &\mapsto \frac{e^{Ls}}{s}.
\end{align*}
The only singularity of $F_y$ is a simple pole at $s=0$. Since
\begin{align*}
e^{Ls} = 1 + Ls + O(s^2)
\end{align*}
as $s \to 0$, the Laurent expansion of $F_y$ at $0$ is
\begin{align*}
F_y(s) = \frac{1}{s} + L + O(s),
\end{align*}
so
\begin{align*}
\operatorname{Res}(F_y,0)=1,
\end{align*}
where $\operatorname{Res}(F_y,0)$ denotes the residue of $F_y$ at the isolated singularity $0$. We shall use the [Cauchy Residue Theorem](/theorems/??? ) for rectangles.
[/step]
[step:Close the contour to the left when $y>1$]
Assume $y>1$, so $L>0$. Fix $T>0$ and let $R>0$. Consider the positively oriented rectangle with vertices
\begin{align*}
c-iT,\quad c+iT,\quad -R+iT,\quad -R-iT.
\end{align*}
For $R>0$, the pole $0$ lies inside this rectangle. By the Cauchy residue theorem,
\begin{align*}
\int_{c-iT}^{c+iT}F_y(s)\,ds
+
\int_{c+iT}^{-R+iT}F_y(s)\,ds
+
\int_{-R+iT}^{-R-iT}F_y(s)\,ds
+
\int_{-R-iT}^{c-iT}F_y(s)\,ds
=
2\pi i.
\end{align*}
We estimate the left vertical side. Parametrize it by
\begin{align*}
\gamma_R: [-T,T] &\to \mathbb{C} \\
t &\mapsto -R+it.
\end{align*}
Then
\begin{align*}
\left|\int_{-R+iT}^{-R-iT}F_y(s)\,ds\right|
&\leq \int_{-T}^{\,T}\frac{e^{-LR}}{|-R+it|}\,d\mathcal{L}^1(t) \\
&\leq \frac{2T e^{-LR}}{R}.
\end{align*}
For fixed $T$, this tends to $0$ as $R\to\infty$.
For the two horizontal sides, using $|\,\sigma \pm iT\,|\geq T$, we obtain
\begin{align*}
\left|\int_{c+iT}^{-R+iT}F_y(s)\,ds\right|
&\leq \int_{-R}^{c}\frac{e^{L\sigma}}{|\sigma+iT|}\,d\mathcal{L}^1(\sigma) \\
&\leq \frac{1}{T}\int_{-R}^{c}e^{L\sigma}\,d\mathcal{L}^1(\sigma) \\
&\leq \frac{e^{Lc}}{LT},
\end{align*}
and the same estimate holds for the lower horizontal side:
\begin{align*}
\left|\int_{-R-iT}^{c-iT}F_y(s)\,ds\right|
\leq \frac{e^{Lc}}{LT}.
\end{align*}
For fixed $T>0$, the improper horizontal-side integrals as $R\to\infty$ exist absolutely, because
\begin{align*}
\int_{-\infty}^{c}\frac{e^{L\sigma}}{|\sigma+iT|}\,d\mathcal{L}^1(\sigma)
&\leq \frac{1}{T}\int_{-\infty}^{c}e^{L\sigma}\,d\mathcal{L}^1(\sigma)
= \frac{e^{Lc}}{LT},
\end{align*}
and the same bound holds with $\sigma-iT$ in place of $\sigma+iT$.
Letting $R\to\infty$ in the rectangular identity gives
\begin{align*}
\left|\int_{c-iT}^{c+iT}F_y(s)\,ds - 2\pi i\right|
\leq \frac{2e^{Lc}}{LT}.
\end{align*}
Dividing by $2\pi i$ and then letting $T\to\infty$ yields
\begin{align*}
\lim_{T\to\infty} I_T(y,c)=1.
\end{align*}
[/step]
[step:Close the contour to the right when $0<y<1$]
Assume $0<y<1$, so $L<0$. Define
\begin{align*}
A := -L > 0.
\end{align*}
Fix $T>0$ and let $R>c$. Consider the rectangle with vertices
\begin{align*}
c-iT,\quad c+iT,\quad R+iT,\quad R-iT.
\end{align*}
The function $F_y$ has no pole inside this rectangle, because its only pole is at $0$ and $0$ lies to the left of the line $\operatorname{Re}s=c$. Hence the Cauchy residue theorem gives
\begin{align*}
\int_{c-iT}^{c+iT}F_y(s)\,ds
+
\int_{c+iT}^{R+iT}F_y(s)\,ds
+
\int_{R+iT}^{R-iT}F_y(s)\,ds
+
\int_{R-iT}^{c-iT}F_y(s)\,ds
=
0.
\end{align*}
On the right vertical side,
\begin{align*}
\left|\int_{R+iT}^{R-iT}F_y(s)\,ds\right|
&\leq \int_{-T}^{\,T}\frac{e^{-AR}}{|R+it|}\,d\mathcal{L}^1(t) \\
&\leq \frac{2T e^{-AR}}{R},
\end{align*}
which tends to $0$ as $R\to\infty$ for fixed $T$.
For the upper horizontal side,
\begin{align*}
\left|\int_{c+iT}^{R+iT}F_y(s)\,ds\right|
&\leq \int_c^R \frac{e^{-A\sigma}}{|\sigma+iT|}\,d\mathcal{L}^1(\sigma) \\
&\leq \frac{1}{T}\int_c^R e^{-A\sigma}\,d\mathcal{L}^1(\sigma) \\
&\leq \frac{e^{-Ac}}{AT}.
\end{align*}
The lower horizontal side satisfies the same estimate:
\begin{align*}
\left|\int_{R-iT}^{c-iT}F_y(s)\,ds\right|
\leq \frac{e^{-Ac}}{AT}.
\end{align*}
For fixed $T>0$, the improper horizontal-side integrals as $R\to\infty$ exist absolutely, because
\begin{align*}
\int_c^{\infty}\frac{e^{-A\sigma}}{|\sigma+iT|}\,d\mathcal{L}^1(\sigma)
&\leq \frac{1}{T}\int_c^{\infty}e^{-A\sigma}\,d\mathcal{L}^1(\sigma)
= \frac{e^{-Ac}}{AT},
\end{align*}
and the same bound holds with $\sigma-iT$ in place of $\sigma+iT$.
Letting $R\to\infty$ in the rectangular identity gives
\begin{align*}
\left|\int_{c-iT}^{c+iT}F_y(s)\,ds\right|
\leq \frac{2e^{-Ac}}{AT}.
\end{align*}
After division by $2\pi i$ and passage to the limit $T\to\infty$, we obtain
\begin{align*}
\lim_{T\to\infty} I_T(y,c)=0.
\end{align*}
[/step]
[step:Compute the symmetric principal value when $y=1$]
Assume $y=1$. Then $L=\log 1=0$, so $y^s=e^{0}=1$ and
\begin{align*}
I_T(1,c)
&=
\frac{1}{2\pi i}\int_{c-iT}^{c+iT}\frac{1}{s}\,ds.
\end{align*}
Parametrize the vertical segment by
\begin{align*}
\alpha_T: [-T,T] &\to \mathbb{C} \\
t &\mapsto c+it.
\end{align*}
Since $d\alpha_T(t)=i\,d\mathcal{L}^1(t)$, we get
\begin{align*}
I_T(1,c)
&=
\frac{1}{2\pi}\int_{-T}^{\,T}\frac{1}{c+it}\,d\mathcal{L}^1(t) \\
&=
\frac{1}{2\pi}\int_{-T}^{\,T}\frac{c-it}{c^2+t^2}\,d\mathcal{L}^1(t).
\end{align*}
The imaginary part vanishes because $t\mapsto t/(c^2+t^2)$ is odd on $[-T,T]$. Therefore
\begin{align*}
I_T(1,c)
&=
\frac{1}{2\pi}\int_{-T}^{\,T}\frac{c}{c^2+t^2}\,d\mathcal{L}^1(t) \\
&=
\frac{1}{\pi}\arctan\left(\frac{T}{c}\right).
\end{align*}
Letting $T\to\infty$ gives
\begin{align*}
\lim_{T\to\infty}I_T(1,c)
=
\frac{1}{\pi}\cdot \frac{\pi}{2}
=
\frac{1}{2}.
\end{align*}
Combining the three cases proves the stated formula.
[/step]