The Kansas Department of Labor wants to put one of its Topeka office buildings up for sale instead of paying for a major heating, ventilation and air conditioning overhaul, agency officials told state lawmakers. The move would shift staff to two other state-owned properties in Topeka and requires parking and interior reconfiguration projects before employees can move.
Cost vs. value drives decision
Dawn Palmberg, chief financial officer for the department, told the Joint Committee on State Building Construction on Sept. 22 that the department’s review found a costly HVAC replacement in the building at 1309 SW Topeka Blvd. would approach $1.5 million. That estimate, she said, contrasted with the Shawnee County appraised value of the property at about $1.8 million, prompting officials to reassess whether investment in the building made fiscal sense.
"The biggest goal is to sell one of our properties on Topeka Boulevard," Palmberg said while outlining the agency’s capital budget plan. She said the department owns three office properties in the capital city: 401 SW Topeka Blvd., 1309 SW Topeka Blvd. and the Eastman Building near SW 6th and MacVicar avenues.
Where employees would go
Palmberg said the labor department believes the other two buildings have enough capacity to absorb staff from the Topeka Boulevard site after renovations and reconfigurations are completed.
- Eastman Building (near SW 6th & MacVicar): has space but lacks sufficient parking; department purchased nearby property to create parking by demolishing an existing structure.
- Administration building at 4th and Topeka: third floor will be reconfigured to accommodate IT and other staff.
She said no staff moves have occurred yet. The timeline for relocation is "contingent upon the parking lot being finished and the third floor at our current administration building," Palmberg told the committee.
Longer-term upkeep and previous estimates
State budget documents from 2025 noted the building has three air-conditioning units near the end of their service life and that maintenance was becoming costly. At that time, a preliminary estimate placed replacement costs at about $500,000. After a more detailed review, officials arrived at the higher figure cited this year.
| Property | Location | Notes |
|---|---|---|
| Topeka Boulevard building | 1309 SW Topeka Blvd. | HVAC estimate ~ $1.5M; appraised ~ $1.8M; being considered for sale |
| Administration building | 4th and Topeka | Third-floor reconfiguration planned for IT and relocated staff |
| Eastman Building | Near SW 6th and MacVicar | Space available; new parking to be added after demolition of purchased property |
Local implications
The agency’s plan has several near-term and longer-term implications for Topeka. Selling a state-owned building downtown could affect property ownership patterns and tax revenues tied to any future private buyer. In the short term, the department must complete demolition and parking work and finish interior renovations before staff relocations occur, which will require coordination with contractors and city permits.
For employees, the changes would mean adjusted commutes and parking arrangements. For residents who track state spending, the department’s decision is an example of a trade-off between capital repairs and real property disposition: officials weighed the cost of a large mechanical replacement against the asset’s appraised market value and concluded sale and consolidation were more prudent.
"We looked at our other two buildings in Topeka and realized some efficiencies," Palmberg said, noting the department would move staff into buildings "in good shape" once necessary projects are completed.
Lawmakers and oversight committees will continue to review the capital plan as the department seeks to finalize parking and renovation work and proceed with any sale. For residents and downtown stakeholders, the next steps will clarify whether the property changes hands and how the vacated space might be reused in Topeka’s urban core.
