TRS Board Approves Moving Forward with Plan
To Move Headquarters to Consolidated Site
The TRS board approved a massive relocation plan that will lead to housing all of the system’s operations in a new complex just north of downtown Austin.
Between now and the summer of 2024, the adopted plan calls for the TRS:
- To have sold its 47-year-old headquarters building in downtown Austin.
- To no longer be leasing additional space downtown (or anywhere else).
- To have consolidated all of its operations and staff into a two-building complex at 1900 Aldrich St. in the Mueller redevelopment area in East Austin, with easy access to Interstate 35.
Click this photo for the developer’s marketing materials for 1900 Aldrich St.
$15 Million Savings Over 20 Years
TRS Executive Director Brian Guthrie summarized data (webcast) reflecting that the sale of the headquarters building will nearly offset the $250 million to $300 million purchase for the new facility, and will ultimately save the retirement system about $15 million over 20 years (with additional savings after that) — and the new campus could serve the TRS for the next 50 years or so.
A consultant told the board that the eventual purchaser of the current building will likely tear it down and build something else.
The new headquarters campus will provide nearly 1,000 dedicated parking spaces (compared to 437 spaces at the system’s current main building), and will provide easier access to TRS members and the public, the board was told.
Retail Space
It was noted that the TRS won’t exactly own all of the two buildings it plans to buy — the first floor of one of the buildings will not be owned by TRS and will be used for retail space. Two floors of one of the buildings, although owned by TRS, will be leased out to other entities for the time being, and can be put into use to accommodate the system’s future growth needs, staff said.
Guthrie said that a number of options were examined, and it was determined that staying in the current building — which would require extensive maintenance and space upgrades, was not feasible cost-wise as growth in TRS membership is expected to increase from 1.7 million members to as many as 3.7 million members by 2050.
Guthrie described the various efforts that have been made to keep the system’s members apprised of the move. But he conceded not everybody is happy about the plans.
Facebook: 95 Percent Left Negative Comments
TRS, for instance, hosted on its Facebook page a live webcast that was archived (YouTube version) for later viewing (and was viewed about 3,800 times) to brief members about the plan and to answer questions. Still, about 95 percent of the Facebook commentators left negative comments, Guthrie said.
Many of the Facebook comments examined by TEN asked that the TRS remain where it is and concentrate instead on giving retirees a meaningful cost of living adjustment (COLA) — or to find a cheaper location elsewhere in Austin or in another Texas city. (Actually, it is the Legislature, and not TRS, that is responsible for giving TRS retirees a COLA.)
The board received a report from its actuarial consultant that the headquarters move would not negatively affect the health of the TRS pension fund or impact, one way or the other, the ability of the retirement system to offer a COLA to retirees.