The gaping holes punched into the exterior of KD Station do little to illuminate the building's interior.

Beyond the thick brick and concrete walls lies a darkness concealing the answer to the biggest question about the former meatpacking plant and commercial center.

How much asbestos was used in the building's construction in the early 1920s?

For city officials, it's a $5 million question. The price tag they have tentatively set to demolish the hulking structure at 2001 Leech Ave. depends largely on how much asbestos is found inside. The more asbestos, the higher the cost.

"The majority of the structure we are considering at this time is being treated as asbestos," said Jeff Hanson, city Planning and Neighborhood Services Division manager.

Since an arson fire damaged KD Station's fourth floor in December, the city has pushed demolition of the 350,000-square-foot building toward the top of its priority list. Concerned that the building now poses a higher public safety risk, the city moved the two-year budget commitment for demolition up from fiscal years 2009 and 2010 to the 2008 and '09 budget cycles.

"Obviously, we're concerned about safety. We would like to remove hazards like this," said Patty Heagel, the city's community development director.

City officials arrived at the $5 million figure based on the cost of tearing down a similar packing plant in eastern Iowa recently.

The driving force pushing up those costs? Asbestos.

Special precautions that slow the demolition process must be taken when dealing with the cancer-causing mineral that until the 1970s was commonly used in insulation and other building materials.

"Asbestos being a known carcinogen, they just can't knock it down," said Tom Wuehr, an Iowa Department of Natural Resources environmental specialist.

The concern during demolition, Wuehr said, is keeping asbestos fibers from being released into the air and being inhaled.

Hanson said the city likely will have to frequently spray water on the demolition site to keep dust down. Special abatement contractors may be required. Transporting the rubble likely will cost more because the trucking company will have to use plastic liners in its trucks. Landfill rates for asbestos disposal also tend to run higher than regular construction disposal.

Listed on the National Register of Historic Places, the five-story KD Station served as a commercial and entertainment center after the late Kermit Lohry bought the former Swift and Co. plant and reopened it in 1976. The building was vacated in 2004, when the city red-tagged it as unfit for occupancy after a fire in an outdoor electrical transformer sent flames up the building's exterior. Then came the fire in December.

The city accepted a quit-claim deed to the property last month. The city soon will hire an environmental consulting firm to take samples throughout the building, determine its asbestos content and develop a work plan, Heagel said.

Asbestos is suspected to be present in insulation wraps around utility lines, Hanson said. Adhesive used to apply interior insulation throughout the building also is a likely source. The lining inside the smokestack is another possible location.

Until environmental sampling is done, the city won't know exactly what it's facing inside the building.

"It's just a matter of how much (asbestos) and how it can be removed," Heagel said.

Could the project cost more than estimated?

"I hope not, but more issues could be found," Hanson said.

The city has budgeted costs at the high end.

Current funding includes:

-- A $500,000 Rebuild Iowa Infrastructure Grant.

-- A $200,000 federal Housing and Urban Development grant.

-- $2.15 million in the fiscal year 2008 Capital Improvements Program budget.

-- $2.15 million in the 2009 Capital Improvements Program budget.

However, city officials hope to see the city's share of the costs shrink and are looking for more federal and state aid for the demolition costs.

"Even though we've budgeted the total, it is still our priority to seek federal funds," Hanson said.

The city has lobbied Congress for $2 million in HUD funds and is seeking money from the federal Brownfields Cleanup Revolving Loan Fund.

Word on HUD funding could come later this year. A decision on Brownfields funding is less certain.

"We're currently working with the EPA on this," Heagel said.

No matter where the funding comes from, the city could begin some exterior cleanup this summer or fall. An above-ground storage tank containing unknown materials is a possible summer project. A skywalk linking KD Station with the building next door also could be removed, Hanson said.

The targeted completion date for demolition is summer 2009, Heagel said. Once finished, the site will be graded and made available for commercial development.

"We expect there will be interest in the site," Heagel said.