CalPERS Begins Master Plan Process of Headquarters Expansion; Community Workshops Top Agenda.

SACRAMENTO, Calif.--(BUSINESS WIRE)--Nov. 10, 1999--

The California Public Employees' Retirement System (CalPERS) announced today that it is embarking on the creation of a master plan for the System's headquarters expansion on the R Street corridor in Sacramento, California.

Over the next three months, CalPERS will begin development of a master plan that will seek input from the City and local Sacramento community. The master planning process will include community workshops, presentations to interested community groups, and an advisory review by the City of Sacramento Planning Commission and Design Review Preservation Board.

"CalPERS is proud to be part of the local community fabric in Sacramento," said Charles P. Valdes, Chair of CalPERS Investment Committee. "This master plan process reflects our commitment to build a high quality building that honors the R Street Corridor policies and meets our own important needs and those of the City and its citizens."

The first of four community workshops is scheduled for November 15, 1999 at 7:30 p.m. at the Hart Senior Center, 915 27th Street in downtown Sacramento, immediately following the monthly Neighborhood Association Advisory Group meeting. The workshop will address preliminary issues in the master planning process, including:

-- CalPERS vision statement for the headquarters expansion;

-- Review of the existing planning policies for the R Street Corridor; and

-- Establishment of urban design framework principles.

"We want to build a building that the City and CalPERS can take pride in and that contributes to the attraction and retention of the best employees," said James E. Burton, CalPERS Chief Executive Officer.

Future workshop topics and dates are as follows:

Identifying Master Plan Features November 29, 1999 6:30 p.m. tour of Lincoln Plaza followed by a 7:00 p.m. meeting Lincoln Plaza, 400 P Street, Sacramento, California Rooms 2170 & 2180

Testing Master Plan Alternatives January 5, 2000 Location to be announced 

Presentation of the Master Plan February 16, 2000 Location to be announced

The public can follow the progress of the master planning process and identify future workshop times and locations on the CalPERS Web site at www.calpers.ca.gov.

In February, CalPERS announced its $9.82 million purchase of 6.1 acres in the R Street corridor to expand its headquarters. The purchase includes two blocks located across the street from the System's headquarters building bordered by 3rd, 5th, Q and R Streets, the portion of an additional block which fronts R Street between 6th and 7th, and partial blocks fronting R Street between 5th and 7th Streets.

CalPERS is expected to build approximately 550,000 square feet of Class A office and ground floor commercial property. The master plan will include approximately 180,000 square feet of residential development in accordance with Sacramento's R Street planning policies. CalPERS Board's fiduciary responsibilities do not allow the System to subsidize residential housing, but the System intends to work with the Redevelopment Agency and the City of Sacramento to explore appropriate financial solutions.

The demand for additional space is being driven by the System's need to provide additional services to its members and manage the Fund's multi-billion dollar investment portfolios. The headquarters expansion is expected to accommodate future CalPERS staff and provide the support and technology for better asset and benefits management.

CalPERS headquarters expansion project is expected to be completed in 2003.

CalPERS is the nation's largest public pension fund with assets totaling nearly $157 billion. The System provides retirement and health benefits to more than 1 million state and local public employees and their families.