Topeka's Astra Innovation Center taking phased approach due to rising construction costs

The Astra Innovation Center in downtown Topeka will move forward with putting a new face on the community's economic efforts.

On Wednesday, Topeka and Shawnee County’s Joint Economic Development Organization Board voted to approve a phased approach, proposed by GO Topeka, for the construction of downtown Topeka’s ASTRA Innovation Center.

City and county officials had three options of approving the phased construction, continuing with New market tax credit's or terminating the agreement made with BioRealty Inc.

In 2021, GO Topeka announced it partnered with BioRealty Inc. to close on multiple properties in downtown Topeka as part of the multimillion-dollar effort to stand up an innovation campus. Topeka's JEDO Board approved the partnership between GO Topeka and BioRealty to develop the $14.5 million innovation campus.

Located in the former Wolfe's Camera Shop while encompassing three storefronts on the block — 635, 633 and 627 S. Kansas Ave., ASTRA is an acronym for Animal, Science, Technology, Research and Agriculture.

The center is expected to serve as the hub for Topeka's Plug and Play accelerator program and other innovative endeavors in the capital city.

The construction will move in two different phases. Phase one of construction is expected to begin July 1.

What will the first phase of construction entail?

Stan Wendzel, founder of BioRealty, said part of the reason for taking the phased construction route is because of rising commercial construction, interest rates and commercial real estate factors.

"I think there's some positive news there and we are returning back to normal levels of change in terms of construction cost and interest rates," Wendzel told city and county leaders, "and that's all we need in order to make our phasing plan work."

Wendzel said the plan will defer Wolfe's building improvements, complete improvements to the middle and Woolworth buildings, defer improvements that aren't integral to the project and project financing.

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Phase one of the ASTRA Innovation Center buildout covers about two-thirds of the project and encompasses about 50,000 square feet. It can now commence without the need to meet the original pre-lease thresholds, subject to completing final documentation, a Wednesday news release said.

Construction factors for phase one include building purchase, pre-development cost, tenant improvement allowances, financing costs and more that total $14.5 million.

GO Topeka’s Innovation Advisory Board recommended the phased approach to construction so available investments of $14.5 million could be efficiently used in Phase 1, as final funding for Phase 2 is secured. The decision provides flexibility and ensures progress continues, as developers adapt to evolving circumstances such as increasing construction costs, the release said.

“In Phase 1, our key focuses will include essential infrastructure and lab space, because the need for such amenities is already evident,” Wendzel said.

Several actions need to happen so construction can start July 1

In order to begin construction July 1, a design will need to be completed, all final documents executed and property tax abatement approved and documented, Wendzel said. Confirmation of construction costs and quick risk estimates, along with release of pre-development efforts and documentation, will also need to be completed.

In August of last year, Stephanie Moran, senior vice president of innovation for GO Topeka, told The Capital-Journal she estimated that construction within the building will take up to a year to complete.

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Much of the pre-construction work has begun, Moran said. That includes such things as elevator inspections, structural engineering reports and more. So, although it's not visible from the street, there is activity going on as far as getting prepared for when construction can begin, she said.

“We are dedicated to creating an environment that fosters collaboration and creativity," Moran said. "There’s a shortage in our region of the type of lab space this innovation center promises, so we’re eager to meet the demand we know is out there.”

Keishera Lately is the business reporter for the Topeka Capital-Journal. She can be reached at klately@cjonline.com. Follow her on Twitter @Lately_KT.

This article originally appeared on Topeka Capital-Journal: Construction of Topeka's Astra Innovation Center to begin July 1