Timber supply has been the main challenge for the upcoming $27 million Cimitiere Street build.
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It has been almost a year since the "synergetic" development was proposed in October 2021, the development was approved by City of Launceston council in December.
The timber-forward building was proposed by health insurance provider St.Lukes Health.
The eight-storey build has been designed in partnership with architectural firm Terroir and project management group Commercial Project Delivery, and plans include a café and a large open space on the ground floor for events, meetings or artistic displays, with the rest of the space comprising offices.
Chief executive Paul Lupo said the building of the $27 million office was "well and truly underway" with foundational work which started earlier this year.
"Piling work to build a solid base is going well, and we will shortly start pouring footings at the front of the site," he said.
A key aspect of the building was the use of sustainably sourced timber which Mr Lupo said securing the timber was paramount to the build.
"We have now secured the timber resources needed for this ambitious build," he said.
"Going for such a unique, sustainable design has created some challenges. The main hurdle we've been working through is timber access. Due to the amount required, and the specific size of the columns and beams, we will need to supplement our Tasmanian timber resources with some from Victoria as well as spruce from Europe. International freight continues to be a challenge."
The location is classed as urban mixed zone, allowing an office space like this build.
The building will have seven levels, a roof level and a basement. Mr Lupo said the company was "blown away by the response from the community."
"The feedback we've received has been fantastic - people love the design and the ethos behind a multi-purpose hub with spaces for health education and public meeting and mingling," he said.
Mr Lupo said they are negotiating with two national tenants for the office building. "If we are successful, they will employ up to 100 Tasmanians in new hi-tech jobs. We anticipate the building could house around 500 people."
St.Lukes Health employed around 140 people, the new office will mean all employees will be under the same roof and not spread across four locations. By September 2023, the building should be fitted out for tenants with St.Lukes Health staff to be in the building by early 2024.
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