6/4/2014 9:23:55 AM
The Buffalo News: 500 new IBM jobs to call nearly vacant Key Center building home
The Buffalo News
ALBANY – About 500 new jobs that IBM Corp. previously promised to create in downtown Buffalo, as part of a state economic development initiative, will take up a big portion of the Key Center office building that is otherwise being vacated in a year by Delaware North Cos.
Gov. Andrew M. Cuomo today will announce the selection of the Fountain Plaza site as the planned new home of his proposed information technology “hub” that envisions everything from training new workers in the field to developing cutting-edge software.
The announcement ends weeks of speculation about where IBM’s new software research facility and jobs would be located, as more than 15 city sites and multiple developers vied for the high-profile project.
In an unusual transaction, the state will spend $15 million to purchase a portion of the building and build it out for IBM, while the rest of the building would remain in private hands. Details of the final contract are still being finalized.
Another $40 million will go for the purchase of equipment and software that IBM, and potentially others drawn to the center, can use. This structure – in which the state retains ownership of the facility and equipment that the tenants can use – is based on a model of the state’s successful nanosciences center in Albany.