With Major Subsidies, Paterson Lures Yahoo! to Upstate New York

Dangling a carrot in the form of a hefty subsidy package, the Paterson administration appears to have successfully wooed Yahoo!–the company has agreed to build a data center in Lockport, N.Y., in the Buffao area.

Last week Yahoo!’s board of directors accepted a low-cost electricity offer from the New York Power Authority. The governor announced the accepted deal today, when additional public approvals are expected.

The offices of Chuck Schumer and David Paterson have been eager to trumpet the officials’ involvement in attracting the tech firm, an attempt to show growth and progress with upstate economic development efforts amid a recession. (With Albany in chaos, the governor didn’t head out west for the announcement this morning, but participated via video conference.)

Still, the number of new jobs is hardly mind-blowing: the governor’s office puts the figure at “up to 125 full-time jobs” for the $150 million server facility.

The subsidy package, however, is substantial. The Buffalo News puts the offer at $101.2 million over 15 years, or $809,940 per job.