{"id":57803,"date":"2020-02-20T15:26:45","date_gmt":"2020-02-20T21:26:45","guid":{"rendered":"https:\/\/trta.org\/?p=57803"},"modified":"2020-02-20T15:26:45","modified_gmt":"2020-02-20T21:26:45","slug":"trs-discusses-lease-agreement-reverses-decision-to-move-into-indeed-tower","status":"publish","type":"post","link":"https:\/\/trta.org\/es\/trs-discusses-lease-agreement-reverses-decision-to-move-into-indeed-tower\/","title":{"rendered":"TRS Discusses Lease Agreement, Reverses Decision to Move into Indeed Tower"},"content":{"rendered":"<p><em>Executive Summary:<\/em><\/p>\n<ul>\n<li><em>TRTA addressed TRS Board regarding extravagant Indeed Tower building lease.<\/em><\/li>\n<li><em>TRS Trustees defended decision-making process that led to signing a lease at the Indeed Tower.<\/em><\/li>\n<li><em>TRS decided to extend its lease at its current location, 816 Congress Avenue.<\/em><\/li>\n<li><em>TRS reports it\u2019s unable to break the lease at Indeed Tower and is still be liable for the space despite a renewal at 816 Congress Avenue.<\/em><\/li>\n<li><em>TRS will have to sub-lease the space at Indeed Tower, fulfilling its 10-year obligation.<\/em><\/li>\n<\/ul>\n<p>The Teacher Retirement System of Texas (TRS) Board of Trustees met today, Thursday, February 20, 2020 to discuss the agency\u2019s recent decision to lease space in a downtown Austin luxury high-rise office building known as the \u201cIndeed Tower.\u201d TRS has come under fire for its decision to lease the Indeed Tower space for $326,000 per month.<\/p>\n<p>After a lengthy presentation from key decision-makers, including TRS Executive Director Brian Guthrie, the TRS board voted unanimously today to not move into the Indeed Tower. TRS will instead renew its lease at 816 Congress for seven years. TRS will lease additional space at 816 Congress to address its growing staff requirements. The state agency will sub-lease the Indeed Tower space. In total, TRS projects that it will save $9.1 million over the course of seven years, provided that the sub-lease is in place, by staying at 816 Congress.<\/p>\n<p>Public comment was available at the start of the board meeting, and Texas Retired Teacher Association (TRTA) State President Patricia Macias provided public testimony.<\/p>\n<p>\u201cIf all TRTA members were here today, they would tell you and everyone listening that we need a raise!\u201d Macias said. \u201cLast month, we read stories about TRS using our fund \u2013 our money \u2013 to pay for its ever-increasing administrative costs. These costs include not only the lease for lavish office space, but also increased bonuses and salaries for TRS employees. We\u2019re not disparaging the need to provide the dedicated TRS staff pay increases. However, we know that the administrative costs are paid out of our fund\u2014the same fund that TRS said cannot afford to provide retirees with a COLA. This is seen and felt as a double standard.\u201d<\/p>\n<p><a href=\"https:\/\/mcusercontent.com\/139c8c12f5d4628c0bbd65c86\/files\/6364737d-2d0f-4448-9c23-818d8d4d36bd\/TRTA_s_Statement_to_the_TRS_Board_of_Trustees.pdf\"><strong>The full statement is available here<\/strong>.<\/a><\/p>\n<p>Earline Hopkins from the Katy Area Retired Educators (KARE) made a powerful testimony too. She explained how the luxury office building compares to the environments that Texas teachers work in.<\/p>\n<p>\u201cIt hurts. We worked in portables,\u201d Hopkins said. \u201cLuxury isn\u2019t in the vocabulary of an educators\u2019 life.\u201d<\/p>\n<p>Hopkins also highlighted the pain that educators have been feeling from not receiving a cost-of-living increase. \u201cIt\u2019s our money that you\u2019re spending,\u201d she said. \u201cNo amount of explaining is going to take away this hurt.\u201d<\/p>\n<p>The Lieutenant Governor shared the following statement with TRTA today:<\/p>\n<p>\u201cAside from a parent, no one has more impact on the success of a child than a teacher and no group has played a larger role in building the intellectual capital and ingenuity of our state than our retired teachers. That\u2019s why I have taken the lead in providing a secure retirement for our teachers including pension reforms in the last session that will make the retirement system actuarially sound going forward. We have ensured that Texas will not be mired in the pension debt that plagues other states. Since I have been Lt. Governor, we have invested over $1 billion dollars in TRS-Care. I am also particularly proud that we were able to add a thirteenth check for retired teachers in 2019. I spoke up when the TRS Board wanted to raise your health care premiums and I am standing with you now in protesting the outrageous rental costs recently proposed by TRS. I have issued an interim charge to the Senate Finance Committee and they will hold a hearing on this issue later this month.\u201d<\/p>\n<h3><strong>TRS Staff, Board Defends Decision to Lease Indeed Tower Office Space <\/strong><\/h3>\n<p>Guthrie led the board in a discussion about long-term facilities planning. Guthrie explained that he has met with over one-third of Texas legislators regarding the decision about the Indeed Tower building lease. \u201cWe understand and take very seriously that we have a fiduciary responsibility to you, our members, and to the fund,\u201d Guthrie said.<\/p>\n<p>Guthrie then led the trustees through a timeline discussion explaining the agency\u2019s long-term facilities needs, saying the investment division of TRS has been downtown since 2008 at its current 816 Congress location.<\/p>\n<p><a href=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S1-1.png\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-large wp-image-57808\" src=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S1-1-1024x576.png\" alt=\"\" width=\"770\" height=\"433\" data-wp-pid=\"57808\" srcset=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S1-1-1024x576.png 1024w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S1-1-300x169.png 300w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S1-1-768x432.png 768w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S1-1-1536x864.png 1536w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S1-1-2048x1152.png 2048w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S2-1.png\"><img decoding=\"async\" class=\"aligncenter size-large wp-image-57807\" src=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S2-1-1024x579.png\" alt=\"\" width=\"770\" height=\"435\" data-wp-pid=\"57807\" srcset=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S2-1-1024x579.png 1024w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S2-1-300x170.png 300w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S2-1-768x434.png 768w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S2-1-1536x868.png 1536w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S2-1-2048x1157.png 2048w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>TRS staff and trustees provided the following rationale for selecting the Indeed Tower:<\/p>\n<p><a href=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S3-1.png\"><img decoding=\"async\" class=\"aligncenter size-large wp-image-57806\" src=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S3-1-1024x579.png\" alt=\"\" width=\"770\" height=\"435\" data-wp-pid=\"57806\" srcset=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S3-1-1024x579.png 1024w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S3-1-300x170.png 300w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S3-1-768x434.png 768w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S3-1-1536x869.png 1536w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S3-1-2048x1158.png 2048w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/p>\n<h3><strong>TRS Board Votes to Renew at 816 Congress, Will Sub-Lease Indeed Tower Space<\/strong><\/h3>\n<p>TRS staff discussed what\u2019s changed since the decision to lease space at the Indeed Tower was made in 2018. The staff emphasized that additional space wasn\u2019t available at 816 Congress when the decision to move to the Indeed Tower was made.<\/p>\n<p>The TRS board was presented with the following options:<\/p>\n<p><a href=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S4-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-57805\" src=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S4-1-1024x575.png\" alt=\"\" width=\"770\" height=\"432\" data-wp-pid=\"57805\" srcset=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S4-1-1024x575.png 1024w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S4-1-300x169.png 300w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S4-1-768x432.png 768w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S4-1-1536x863.png 1536w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S4-1-2048x1151.png 2048w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/p>\n<p>TRS stated it does <strong>not <\/strong>have unilateral right to terminate the lease at the Indeed Tower and will essentially become landlords to whatever tenant or tenants sub-lease the space. TRS will still be liable for the lease fees whether a tenant for the space is found or not for the full lease term of 10 years.<\/p>\n<p>TRS staff asked the Board of Trustees to adopt a resolution to negotiate a renewal and expansion of their lease space at 816 Congress, signing on for additional seven years once the current term ends in March 2021. The resolution includes TRS pursuing the subleasing of the space they have at the Indeed Tower. Trustee David Corpus made a motion to approve the resolution, which was seconded by trustee Nanette Sissney. The motion was passed unanimously.<\/p>\n<p><a href=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S5-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-57804\" src=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S5-1-1024x576.png\" alt=\"\" width=\"770\" height=\"433\" data-wp-pid=\"57804\" srcset=\"https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S5-1-1024x576.png 1024w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S5-1-300x169.png 300w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S5-1-768x432.png 768w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S5-1-1536x864.png 1536w, https:\/\/trta.org\/wp-content\/uploads\/2020\/02\/S5-1-2048x1152.png 2048w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/p>\n<h3><strong>TRS Called to Testify to Texas Legislature<\/strong><\/h3>\n<p>Now that the TRS Board of Trustees have made a decision to renew their lease at 816 Congress Avenue and sub-lease the space at the Indeed Tower, TRS will address the Texas Legislature.<\/p>\n<p>TRTA is grateful for the Lieutenant Governor Dan Patrick for making TRS a priority by having a Senate Finance Committee hearing next week. The meeting will be held at the Texas Capitol on Tuesday, February 25 at 10:00 a.m. in Room E1.036.The House Pensions, Investments, and Financial Services Committee will also host a hearing on March 9, 2020 at 10:00 a.m. in Room E2.026. TRTA will provide more details about these scheduled meetings soon.<\/p>","protected":false},"excerpt":{"rendered":"<p>Executive Summary: TRTA addressed TRS Board regarding extravagant Indeed Tower building lease. TRS Trustees defended decision-making process that led to signing a lease at the Indeed Tower. TRS decided to extend its lease at its current location, 816 Congress Avenue. TRS reports it\u2019s unable to break the lease at Indeed Tower and is still be [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":55795,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-57803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>TRS Discusses Lease Agreement, Reverses Decision to Move into Indeed Tower - Texas Retired Teachers Association<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trta.org\/es\/trs-discusses-lease-agreement-reverses-decision-to-move-into-indeed-tower\/\" \/>\n<meta property=\"og:locale\" content=\"es_ES\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TRS Discusses Lease Agreement, Reverses Decision to Move into Indeed Tower - Texas Retired Teachers Association\" \/>\n<meta property=\"og:description\" content=\"Executive Summary: TRTA addressed TRS Board regarding extravagant Indeed Tower building lease. 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