The state has released $140 million for the construction of the University of Hawaii Cancer Center in preparation of its ground breaking on Thursday.

The six-story center, previously known as Cancer Research Center of Hawaii, was renamed to underscore its connection with the university, according to a release issued today by Gov. Linda Lingle’s office.  

The project will include 150,000 square feet of laboratory space and offices for more than 300 research faculty and staff and will help the facility maintain its National Center Institute designation, as well as a $1 million per year federal grant for ongoing research, the release said.

The center is expected open in early 2013. 

Meanwhile, the UH Board of Regents are expected to approve on Thursday a proposed $2.5 million settlement of a breach-of-contract lawsuit brought by Townsend Hawaii LLC, the project’s original developer.

UH chose Townsend to negotiate a deal on designing, financing and building the center, but talks with Townsend broke off in June 2009. The university later selected Kobayashi Group LLC to oversee design and construction. The suit sought damages, including lost profits.

In November 2009, the state released $28 million to pay for planning and design of the project. The center’s total estimated cost is $120 million, with $20 million for unanticipated construction expenses.