On an $8M valuation/appraisal: A bank would likely lend $5.2 million to $6 million.

 Here's a clear, taxpayer-friendly breakdown of the property's market value today (220 SE 6th Ave / Link Innovation Labs building) based on the lease you attached, the property record card, public investment history, and current market data.

1. Total Cash Put Into the Asset ("All the cash that's been put in there")

• 2020 Phase (initial acquisition + Class A office renovation): ~$15 million total project cost. Shawnee County issued $13 million in Industrial Revenue Bonds (IRB conduit financing) + private equity from 220SE6th LLC. This covered buying the old AT&T building, asbestos abatement, major mechanical/HVAC upgrades, and turning it into modern 5-story office space (~134,430 sq ft total).
• 2025 Phase (Link Innovation Labs ground-floor lab fit-out): ~$7–9.5 million in JEDO (public economic development) funding + any additional private costs. This paid for the specialized wet/dry labs, co-working, event space, etc., that TSC Innovation is now leasing (the exact $7M interior remodel permit on the property card).

Grand total cash invested: Roughly $22–24.5 million+ (mix of public grants, IRB debt that the owner repays, and private equity). This is historical cost, not what the building is worth today — markets don't care what was spent; they care what a buyer will pay now.

2. What's the Property Worth Today? (Current Market Value)

Real estate pros use three main methods. Here's what they show:

• Sales Comparison (most direct): The entire 134,430 sq ft building is actively listed for sale at $8,000,000 (~$59.51 per sq ft). This is the strongest real-world indicator of current market value. Topeka downtown/Class A office comps trade in the $60–88 per sq ft range.
• Income Approach (based on your lease + market rents):
  • Ground floor only (17,174 sq ft leased to TSC Innovation/Link Labs): Starts at $257,610/year in 2026, escalating to ~$310k/year by 2031 (10-year term + renewal option).
  • Upper floors: Market rates are ~$17–20 per sq ft (per building marketing). The building is multi-tenant and actively leasing.
  • Topeka Class A office cap rates are ~7.7–8.5%. Using a conservative 8% cap rate on stabilized net operating income (NOI) from the known lease + projected other floors puts the value right around $7.5–9 million.
• Cost Approach: Replacement cost today would exceed $22M+, but this is adjusted downward for market conditions, location, and age (built 1969, renovated 2021 + 2025 labs). It supports the $8M range but isn't the primary driver.

Bottom line on value: The fair market value today is approximately $8 million (centered on the active listing price). The massive public + private cash infusions created a premium lab/office asset, but in Topeka's secondary market, buyers aren't paying the full sunk-cost total — they're paying based on actual rental income and comps.

(Note: The county tax appraisal stays artificially low at ~$2.12M because of the ongoing IRB/PILOT tax abatement. That has zero bearing on true market or bank value.)

3. What Could the Owner Borrow Against It at a Bank Today?

Banks use Loan-to-Value (LTV) ratios of 65–75% for commercial office properties (they'll take the lower of their independent appraisal or purchase price). They also require strong debt-service coverage (rent must cover loan payments comfortably).

• On an $8M valuation/appraisal: A bank would likely lend $5.2 million to $6 million.
• The long-term lease to TSC Innovation (publicly backed innovation hub) plus other tenants helps — it's good collateral. The specialized labs actually add a premium for certain lenders.
• Rates would be market (currently ~6–8% depending on credit/term), with the owner needing solid financials and occupancy.

If the owner refinances or sells, this is the realistic borrowing power. The public money helped build the equity; the private owner now controls the upside.

Summary for taxpayers: Public dollars (~$20M+ across both phases when including the IRB financing) turned a tired 1969 building into a modern innovation hub. That created real value — but the market prices it at ~$8M today, not the full amount spent. The private LLC owns 100% of that $8M asset and its future rental income, while taxpayers still get only the fixed ~$63k PILOT instead of full taxes.