LOCKPORT – The Town of Lockport Industrial Development Agency sold 18 acres of land to Yahoo on Thursday, but it’s the second time the Internet giant has purchased this particular lot.
IDA Executive Director David R. Kinyon said this land, north of Yahoo’s existing data center complex in the town industrial park, had been approved for sale to Yahoo last fall.
However, the California company didn’t close on the sale.
“It was delayed because they were focused on getting Phase 2 going,” Kinyon said, referring to the second data center project in the industrial park.
Work began in December, and the new center may come on line by this fall.
In the meantime, another industrial park business, Bison Bag Co., expressed interest in expanding its plant and needed land to do so – some of the same land Yahoo had planned to buy.
Kinyon said Bison Bag bought about 1.5 acres of the property earlier this year for $20,000 an acre.
Thursday, the IDA board approved, or reapproved, the sale of 18.12 acres to Yahoo for $15,000 an acre – the same price as it charged last fall.
But this time, IDA counsel Daniel E. Seaman said, Yahoo has already signed the purchase contract.
The board passed a resolution acknowledging that the price may be “below fair market value.”
But the deal also gives Yahoo seven years to develop the 18 acres.
“In the event it’s not developed, we have the opportunity to repurchase it,” Seaman said.
Yahoo didn’t object to such a “clawback” provision but originally asked for eight years, Seaman said.
Yahoo’s last land purchase in Lockport had a five-year clawback clause.
“They actually developed it in one year,” Seaman said.
With this purchase, Yahoo now owns 61 acres in the industrial park, Kinyon said. Previous buys were 30 and 13 acres.
As for Bison Bag, the IDA scheduled a public hearing for 8 a.m. Aug. 14 on its request for a 15-year payment-in-lieu-of-taxes, or PILOT, arrangement on its planned 42,000-square-foot addition.
Kinyon said the $1.6 million project would create five new jobs.
Also Thursday, the board granted permission for Hashem Enterprises, another industrial park business, to refinance its mortgage with a $550,000 loan.