The negotiations also sparked skepticism about whether the Bills would have ultimately abandoned New York without a large government subsidy, though the owners never publicly threatened to uproot the team.
Pegula Sports and Entertainment is owned by Terry and Kim Pegula, a wealthy couple based in western New York; Mr. Pegula, who made his fortune through fracking, has a net worth of $5.8 billion, according to Forbes.
The new open-air stadium, which would be built across the street from the Bills’ current home in Orchard Park, a Buffalo suburb, would hold just over 60,000 fans, about 10,000 fewer than the current venue. But it would have a larger footprint overall and include about 60 box suites, a more lucrative source of revenue for teams.
A partial roof would cover about 80 percent of all seats, an attempt to protect fans from the region’s frigid wind and snowfalls during winter games. The new stadium could open as early as 2026 if construction begins within a year, according to team officials.
The N.F.L. approved the $200 million loan for the construction during its annual meeting in Florida on Monday morning, shortly before Ms. Hochul’s announcement.
Local legislators in Erie County must also approve the county’s part of the financing, which will be raised partly through bonds, according to Mark Poloncarz, the county executive, who added that the Bills would be on the hook for any cost overruns.
State Senator Sean Ryan, a Democrat from Buffalo who represents the district where the new stadium will be constructed, said he was satisfied with the final deal.
“Subsidies for sport stadiums are a bitter pill,” he said. “Nobody is happy about doing this, but this is the best deal we could expect under the circumstances.”
Ken Belson contributed reporting from Palm Beach, Fla.