Gov. David A. Paterson has signed two critically important measures that somehow got through an extremely dysfunctional Legislature this year, and that merits some rejoicing, and some praise for the Western New York delegation.

Because of these new laws, Western New York redevelopment efforts stand to benefit from some of the revenues raised by the sale of Niagara power, and redevelopment based on historic rehabilitation gets a major boost from expanded tax credits. Both measures are investments in the future of this region, well made.

Legislation sponsored by Assemblyman Sam Hoyt, D-Buffalo, and Sen. David Valesky, D-Oneida, amended the current state historic rehabilitation tax credit law to allow banks and insurance companies to now claim the tax credit. An immediate result was the announcement of redevelopment work on the Hotel Lafayette in the heart of downtown.

Paterson's signature on the bill (A10839/S7556) followed hard-earned approval in the Assembly, especially. It expands the pool of potential investors in rehabilitation projects. Banks and insurance companies are among the most frequent, aggressive and experienced users of the federal rehabilitation tax credit, and this change will now bring more of their investments into New York State and close a financing gap to make more historic rehab projects real.

That could mean hundreds of millions of new dollars for current and future redevelopment in Western New York. Developer Rocco Termini understandably glowed during his recent press conference about the $35 million Lafayette project, for which he credits the changes in the state's historic preservation tax credit program and Hoyt for shepherding the bill through the State Legislature in a difficult year.

Also expected to gain from the amended legislation are planned projects at AM&A's, the Horsefeathers building, the Genesee Gateway Project, the Alling & Cory Building, Bethune Hall and the Cooperage. Other building projects in upstate and Western New York have been waiting for this change.

Paterson also rightly ignored some downstate grumbling and signed another bill, A8712A/S5783A sponsored by Assemblyman Dennis H. Gabryszak and Sen. William T. Stachowski, that justifiably keeps the benefits of a regional treasure in this region. The new law sets aside profits from New York Power Authority sale of unused hydropower meant for local industry to promote economic development in the region. There are estimates that that could mean millions of dollars per year for development incentives.

The Power Authority, which supported the concept, cautions that most of the unused power already has been recommited to such regional development efforts as a Yahoo Inc. center and Globe Metals, reducing the probable pot of money. And the agency notes that the state still must clarify the way the law is implemented. But, as Rep. Brian Higgins has noted, this is the right use for those power-sale proceeds.

Paterson also signed another Hoyt bill, the Smart Growth Public Infrastructure Policy Act (A8011B/S5560B), in last week's flurry, requiring state agencies to use "smart growth" and sustainable criteria when deciding how to spend infrastructure dollars for roads, sewers, water line and utilities. The law targets infrastructure investments toward main streets, downtowns, brownfield areas, central business districts and "municipal centers."