The California State Teachers’ Retirement System (CalSTRS)’s anticipated $300 million headquarters expansion has been delayed due to issues with the curtain wall, Chief Investment Officer has reported. “The delay is expected to cost CalSTRS at least $15 million, meaning the pension will have to look for alternative ways to finance the project,” the published report says.
Ideas include leasing parts of the building while it is still under construction or issuing additional bonds to cover construction expenses.
“We want to make sure we build that risk into our budget numbers,” said Lisa Blatnick, chief operating officer (COO) of CalSTRS. “Based on initial research, issuing additional bonds to cover the construction expenses is looking super positive.”
Blatnick told the pension fund’s board that she would have a more definitive report about total costs ready in time for the January board meeting. At that point, she expects she will be able to completely confirm financing options and ask the board to approve a new finalized budget. “We really feel like between now and then, all of the variables that we still have left will be figured out,” she said.
The new headquarters building in West Sacramento has been in the works since 2018.