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Computer Task Group is expanding with a third area location to handle a $20 million, three-year contract for KeyBank.

The Buffalo-based computer consulting firm has leased 23,500 square feet at Audubon Commerce Park in Amherst. CTG expects to put about 100 employees in the new facility, and has already offered jobs to 72 workers being laid off by KeyBank.

Two other companies, Balzers Tool Coating Inc. and Buffalo Filter, have also expanded their local operations by leasing additional space in Audubon.

KeyBank, headquartered in Cleveland, is contracting out much of its information technology work. CTG will manage KeyBank's operating systems for loan processing and deposit accounting.

KeyBank is eliminating 107 jobs. Employees laid off by the bank will receive severance pay and outplacement services. Employees who turn down a CTG job offer with comparable pay, which KeyBank defines as 90 percent of present salary, are not eligible for severance pay.

"I believe we made comparable offers. We're not talking about 90 percent. I'm pretty sure they were identical salary offers," said Janet Owczarczak, managing director for upstate New York with CTG.

KeyBank's employees will officially shift to the CTG payroll Oct. 1. CTG already has about 350 employees at two locations on Delaware Avenue in Buffalo, but wanted a space near KeyBank's customer service center on Main Street in Amherst.

The influx of talent gives CTG a stronger position to attract other clients in the financial services industry.

"This is a very important contract for CTG. We're not only expanding our Buffalo presence, but also expanding within the financial services industry," MS. Owczarczak said.

CTG will move into the former Electronic Data Systems office. EDS is building a new 25,200-square-foot computer center on North French Road in Amherst and creating 45 jobs.

Balzers Tool Coating will put about 30 employees into a new headquarters at 495 Commerce Drive. The corporate office will relocate from Erie Avenue in North Tonawanda in October.

Balzers is moving adjacent to its coating service center on Commerce Drive. The company employs a total of more than 400 people at the Amherst coating center and three similar centers outside Western New York. Balzers makes specialty coatings for cutting, forming and molding tools.

"This site is convenient to the airport and all major Western New York thoroughfares. That was a major factor in our decision," said Fred Teeter, marketing director for Balzers.

Buffalo Filter, a division of Medtek Devices Inc., moved into a 14,421-square-foot headquarters at 595 Commerce Drive in July.

The company with 22 employees specializes in assembly of medical equipment, smoke evacuation equipment, filters and tubing utilized in surgical procedures.

All three buildings are owned by Ciminelli Development Co. of Williamsville. The development company said about 95 percent of its 390,000-square-feet in Audubon is now occupied.

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