Haslam administration lays out plan to outsource office space

NASHVILLE, Tenn. (AP) -- The administration of Gov. Bill Haslam has revealed the scope of its outsourcing of state office space.

The Commercial Appeal reported Haslam's chief of staff, Mark Cates, acknowledged to the state legislature's Fiscal Review Committee that the administration could have been more transparent in the plan.

A $38 million contract with Chicago-based real estate firm Jones Lang LaSalle pays management and expense fees as state workers are moved into leased office space. Another contract gives the firm 4 percent commissions on the 10-year rental fees.

The two-hour presentation Tuesday was the first comprehensive review lawmakers have received on the change, which represents a major shift in state policy.

After the presentation by Cate, Republican Sen. Bill Ketron of Murfreesboro said the contracts were legal and "above board."


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