CEO Memo to the Calverton Staff

June 13, 2017

All Calverton Staff,

We have some good financial news.

We have successfully negotiated a sub-lease with Alertus, and they have agreed to a two-year lease with two one-year options. This agreement will take us to the conclusion of our Calverton lease.

This will mean significant savings in Net Assets over the next four years, enabling us to maintain savings for other important investments and development activities.

This will also mean significant savings for the Calverton Center – reducing unnecessary overhead expenses and using what is now unused space.

Alertus will assume all of the 9th floor offices beginning August 1, 2017. We will retain the server room and shared use of the Large Conference room and kitchen on the 9th floor. Scheduling of the Large Conference room will continue as it is currently. Use of the mailroom is to be determined.

The obvious result is that the current 9th floor staff will move to the 10th floor.  We will maximize all the space on the 10th floor.  We are moving as few of the 10th floor staff as possible. When those moves are completed by June 30th, staff on the 9th floor will move upstairs.  Your supervisor will have room assignments, as we finalize the floor plan and will be talking with you about the floor plan and moving needs.  Furniture on the 10th floor will be used, and we will leave most of the 9th floor office furniture in place.

Moving is a challenge; however, this move creates a solution that management and the Board have been deeply concerned about for some time. We obviously do not need all the space we have and we are obligated to pay for all the space. This is a real financial burden that has troubled management and the Board for years. While moving offices is not ideal, this is a very workable plan and a very good solution, given the unused space and the significant financial savings. Your anticipated cooperation is appreciated. The Board too appreciates our work on this issue and your cooperation that will yield significant financial savings to PIRE.

Thank you,