MAJOR DEAL BETWEEN IBM AND NEW YORK IN THE WORKS

ALBANY _ State officials and IBM Corp. are working on a deal to invest $90 million in state aid to spur more than $2 billion in private-sector investment over five years at IBM facilities in East Fishkill and Albany.

The goal, according to state officials, would be to retain and expand high-tech jobs at the East Fishkill semiconductor facility and to boost IBM's presence at the College of Nanoscale Science and Engineering of the University at Albany.

The negotiations come after former Gov. Eliot Spitzer was criticized by Republican lawmakers for not doing more to bring the deal to fruition.

But Gov. David Paterson and former Senate Majority Leader Joseph Bruno, R-Brunswick, Rensselaer County, has taken the reins of the package, which could be announced soon.

Bruno hinted Tuesday that a major economic-development announcement in Albany was near, but didn't elaborate on the project.

Sen. Stephen Saland, R-Poughkeepsie, said Paterson and legislative leaders have had ongoing discussions with IBM about the potential agreement.

Paterson "has been receptive to trying to put together an agreement with IBM that will result in job retention and job growth," Saland said. "Former Gov. Spitzer didn't want any part of it."

Saland confirmed that any deal should include a commitment from IBM to retain jobs at the East Fishkill semiconductor plant, which together with the Poughkeepsie facility employs more than 11,000 people.

"I know job retention is critically important," Saland said. "If and when the deal is done, that will be an element of it."

On Wednesday, IBM announced plans to cut about 200 jobs in its microelectronics division, mainly at its Burlington, Vt. plant. The dvision also includes the East Fishkill facility.

Jeff Couture, a spokesman at IBM's Vermont semiconductor plant, said IBM has no announcements to make at this time and had no comment on the talks of the proposed deal.

Assemblyman Marcus Molinaro, R-Tivoli, said any deal with the state should include attempts to retain jobs.

"Keeping IBM and those employees in our region is critically important," he said.

Anne Conroy, president of the Dutchess County Economic Development Corp., said IBM's future is vital to the future of the county.

"They are critical to our economy, and we believe their job retention is absolutely essential," she said. "Their reinvestment is what we are working toward."

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Includes reporting by Poughkeepsie Journal reporter Craig Wolf.