CalSTRS New Headquarters Construction Delayed

The setback is expected to cost the pension between $15 million to $21 million.


The California State Teachers’ Retirement System (CalSTRS)’s anticipated $300 million headquarters expansion has been delayed due to permitting issues, which took longer than expected due to COVID-19. 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.

Currently, 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.

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The new CalSTRS headquarters building, which will be located in West Sacramento, has been in the works since 2018. It reflects CalSTRS’ desire to keep as much of its portfolio management in-house as possible. “The more investments we can manage in West Sacramento, the less we have to pay external Wall Street firms,” CIO Christopher Ailman said of the project.

This story has been updated to reflect that COVID-19 was the main reason for the delay, not issues with the curtain wall. 

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Why Is Elon Musk Really Dumping Tesla Stock?

He wins popularity with the Twitter crowd, but don’t think he is making any sacrifice here.



The people spoke, and Elon Musk obeyed. Federal filings show that this week he has sold $5 billion of his Tesla shares, after asking Twitter followers if he should trim his stake. The majority said yes. Wall Street is busily debating what is really behind this move, aside from jangling social media.

But don’t doubt that his eccentric behavior endangers his standing as the nation’s second wealthiest man (behind Amazon’s Jeff Bezos). Forbes lists Musk’s fortune at $190.5 billion. And much of it is tied up the electric vehicle (EV) maker. Previously, he was listed as owning 17% of Tesla, which means his stake falls to something close to 16.5%.

What’s more, his position in Tesla is a moving target. He didn’t point out in the tweets that he has 21.6 million of stock options that must be exercised before August, when they expire. That would send his ownership in the company back up, of course. Part of this week’s sale was to cover the taxes on previous options he converted to shares.

One thing’s for sure: His actions have sent Tesla stock skidding. It plunged Monday and Tuesday by 16.2% and since has recovered part of that lost ground. As of late Thursday morning, Tesla is down just 11.8%.

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The bottom line is that Musk has lost money on this transaction—although we don’t know what the cost basis is of the shares he unloaded, or how his tax accountants can use any loss to benefit him.

Despite the recent drops, Tesla stock still is up more than 20% this year. Whatever way you look at it, Musk has not emerged hurting in any way.

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