Vanderbilt University is coming to West Palm Beach.
Palm Beach County commissioners gave final approval Tuesday to a contract with the Nashville-based university to build a graduate campus here. The contract calls for Vanderbilt to spend at least $2.4 billion in the first 25 years and $5.3 billion in the first 50 years “in connection” with the school and related operations. It essentially requires Vanderbilt to follow through on much of what was contained in its own “independent” economic impact study that was presented to the commission earlier this year.
During the first five years following closing on the contract, “Vanderbilt FL” will be required to submit semiannual project development reports and annual reports thereafter until the graduate campus is completed.
“We are overjoyed,” Vanderbilt Vice Chancellor Nathan Green told The Post. He expects “shovels in the ground” by 2029 if not sooner. The approval, he noted, will give a boost to fundraising efforts that are already about one-third toward the final goal of reaching the necessary $300 million.
A reverter clause would be triggered if Vanderbilt FL failed to commence construction within five years, or if it at any point ceases using the land for educational purposes. Should the county take back the property, it would have to reimburse Vanderbilt for any improvements it has undertaken.
Commissioners declined to include an extra layer of protection called for by the county’s Property Review Committee (PRC) that would have resulted in the land also reverting back to county taxpayers if Vanderbilt fell 10% below its projected economic metrics.
Commissioners Sara Baxter and Mack Bernard called the recommendation an “overreach,” claiming there is enough protection in the contract to ensure that the Vanderbilt graduate campus goals are met. Vanderbilt attorney Harvey Oyer called the recommendation for additional protection “absurd,” noting that the county would have to take back the property should the financial impact be off by 10% at any point. “That is not the result you would want but we expect to easily meet all those financial impact goals,” he added.
How much land will the new Vanderbilt campus occupy in downtown West Palm Beach?
The county will donate a five-acre parcel of land appraised at $46 million. The city of West Palm Beach has already agreed to donate an additional two acres, resulting in Vanderbilt FL owning seven downtown acres worth nearly $60 million. The properties are along South Tamarind Avenue, from Datura Street south to Fern Street, in a section of the city dubbed Government Hill. At least 90% of the seven acres must be used for educational purposes, but there is an exception for Transit Village that may be temporarily using part of the land for parking.
Kelly Smallridge, president of the Business Development Board of Palm Beach County, claimed Tuesday that the project has already begun to pay dividends. She said a major employer is considering coming to the county but is concerned about the lack of artificial intelligence programs. Smallridge said Vanderbilt’s Green agreed to speak with the company to discuss the school’s plans, a move that may result in it bringing more than 2,000 jobs to the county.
The contract requires Vanderbilt FL to to begin building Phase 1 of the graduate campus within five years. It must include a $300 million facility that creates at least 4,500 construction jobs, have an annual enrollment of at least 900 students and employ at least 200 people. Its annual budget within five years must be at least $70 million. The county will have the naming rights for a services-oriented facility such as a student union building.
To be sure, there has been public criticism that the county should have obtained some money for the land it gave away, especially since Vanderbilt has an endowment of more than $11 billion. But Oyer emphasized that the return on investment for the county is more than 20-to-1, noting: “There is no better use of this five-acre parcel.”
Commissioner Gregg Weiss agreed, calling the transfer of land “an investment,” not a donation, that is “transformational” for the region. He said the true value of this graduate campus cannot be calculated.
The additional protection sought by the PRC appears to be designed to prevent a repeat from the oft-criticized Scripps Research deal that resulted in the bioscience research nonprofit receiving 70 acres of prime real estate in Jupiter for $1. Scripps was contractually obligated to create 545 jobs and remain in the county for 15 years, after which it would receive 70 acres for a biotech village on the southeast corner of Interstate 95 and Donald Ross Road, an area known as the Briger tract. It never built the biotech village.
Vanderbilt’s master plan must meet certain standards
To avoid a Scripps repeat, Vanderbilt must prepare a master plan within 12 months that will meet or exceed the economic projections. If it does not, it could trigger a default but not the reverter clause. The master plan will detail the initial two-year, five-year and 10-year plans for the development, planning, design, permitting, construction, operation and maintenance of the graduate campus. At a minimum it will address:
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Academic offerings.
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Community engagement.
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Initial operations.
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Economic impact.
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Naming opportunities.
Other features of the contract that will benefit the region include:
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A partnership with the Palm Beach County School District to create programs that focus on students in under-served areas.
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A fellowship program for a minimum of 25 county students per year that allows them to be exposed to Vanderbilt’s faculty and students for mentoring and and internship opportunities.
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A partnership with existing literacy programs in the county to promote and achieve greater literacy.
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Development of workforce development programs to help county residents learn skills associated with new jobs that are expected to be created.
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Creation of salary and wage incentives tied to residency for employees who live within a quarter-mile of the graduate campus.
The county is requiring Vanderbilt FL to mitigate traffic impacts. The school has agreed to work with students and staff to urge the use of Tri-Rail, PalmTran or Brightline. On-campus showers and changing facilities will be provided for staff and students who ride bicycles or walk to the graduate campus.
The final contract agreement culminates months of negotiations between county staff and Vanderbilt officials.
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Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government and issues impacting homeowner associations. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: County gives green light to Vanderbilt campus in West Palm Beach
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