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    • County approves Vanderbilt University in downtown West Palm Beach
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    County approves Vanderbilt University in downtown West Palm Beach

    Seren Anwen Posted on

    For the first five years following closure, Vanderbilt FL will be required to submit semi-annual project development reports and annual reports until the graduate campus is fully constructed.

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    • Vanderbilt University will build a graduate campus in West Palm Beach, Florida, after county commissioners approved a contract.
    • The county will donate a five-acre parcel and the city of West Palm Beach will donate another two acres for the campus.
    • Vanderbilt must spend at least $2.4 billion in the first 25 years and $5.3 billion in the first 50 years on the school and related operations.
    • The graduate campus will focus on the finance, data and technology industries and the annual cost is estimated at $103,000.
    • The project is expected to create jobs and boost the local economy, with a projected return on investment of more than 20 to 1 for the county.

    Vanderbilt University is coming to West Palm Beach.

    Palm Beach County commissioners gave final approval Tuesday, Oct. 22, 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 implement much of what is contained in its own “independent” economic impact study submitted to the commission earlier this year.

    Vanderbilt FL is required to submit semi-annual project development reports for the first five years following the completion of the contract 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” no later than 2029. He noted that the approval will give a boost to fundraising efforts, which are already about a third of the way toward the final goal of the required $300 million.

    A reverter clause would be triggered if Vanderbilt FL did not begin construction within five years or if the land ceased to be used for educational purposes at any time. If the county were to take back the property, it would have to compensate Vanderbilt for any improvements made.

    Commissioners declined to implement an additional layer of protection requested by the county’s Property Review Committee (PRC), which would have resulted in the land also reverting to county taxpayers if Vanderbilt fell 10% below its projected economic metrics.

    Commissioners Sara Baxter and Mack Bernard called the recommendation an “overreach” and claimed the contract contained enough protections to ensure the goals of the Vanderbilt graduate campus were met. Vanderbilt’s attorney, Harvey Oyer, called the recommendation for additional protections “absurd” and noted that if the financial impact were to decrease by 10% at any point, the county would have to take back the property. “This is not the outcome you would want, but we expect we can easily achieve all of these financial impact goals,” he added.

    How much land will the new Vanderbilt campus take up in downtown West Palm Beach?

    The county will donate a five-acre property valued at $46 million. The city of West Palm Beach has already agreed to donate an additional two acres, giving Vanderbilt, Fla., seven downtown acres valued at nearly $60 million. The properties are located along South Tamarind Avenue, from Datura Street south to Fern Street, in a neighborhood called Government Hill. At least 90% of the seven acres must be used for educational purposes, but there is an exception for Transit Village, which may temporarily use some of the land for parking.

    Kelly Smallridge, president of the Palm Beach County Business Development Board, claimed Tuesday that the project has already started paying dividends. She said a large employer is considering coming to the county but is concerned about the lack of artificial intelligence programs. Smallridge said Vanderbilt’s Green has agreed to speak with the company to discuss the school’s plans, a move that could result in more than 2,000 jobs being created in the county.

    The contract requires Vanderbilt, Fla., to begin construction on the first phase of the graduate campus within five years. It must include a $300 million facility that creates at least 4,500 construction jobs, has an annual enrollment of at least 900 students and employs at least 200 people. Its annual budget within five years must be at least $70 million. The district receives the naming rights for a service-oriented facility, such as a student union building.

    However, there was public criticism that the county should have received some money for the land it gave away, especially since Vanderbilt has assets worth more than $11 billion. However, 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 property.”

    Commissioner Gregg Weiss agreed, calling the land transfer “an investment” rather than a gift that would be “transformative” for the region. He said the true value of this graduate campus cannot be calculated.

    The additional protection sought by the PRC appears designed to prevent a repeat of the oft-criticized Scripps Research deal, which resulted in the life sciences research organization receiving 70 acres of prime Jupiter real estate for $1. Scripps was contractually obligated to create 545 jobs and remain in the county for 15 years. It then received 70 acres of land for a biotech village at the southeast corner of Interstate 95 and Donald Ross Road, an area known as the Briger tract. The biotech village was never built.

    Vanderbilt’s master plan must meet certain standards

    To avoid a Scripps repeat, Vanderbilt must create a master plan within 12 months that meets or exceeds economic forecasts. Failure to do so could trigger a default, but not the reverter clause. The Master Plan details the initial two-year, five-year and ten-year plans for the development, planning, design, approval, construction, operation and maintenance of the graduate campus. This involves at least the following:

    • Academic offerings.
    • Community involvement.
    • First operations.
    • Economic impact.
    • Naming options.

    Other parts of the agreement that will benefit the region include:

    • A partnership with the Palm Beach County School District to develop programs focused on students in underserved areas.
    • A scholarship program for at least 25 county students per year, allowing them to meet Vanderbilt faculty and students for mentoring and internship opportunities.
    • A partnership with existing literacy programs in the county to promote and achieve better literacy.
    • Develop workforce development programs to help county residents learn skills associated with new jobs expected to be created.
    • Create residency-linked salary and wage incentives for employees who live within a quarter-mile radius of the graduate campus.

    County requires Vanderbilt FL to mitigate traffic impacts. The school has agreed to work with students and staff to promote the use of Tri-Rail, PalmTran or Brightline. Showers and changing rooms are available on campus for employees and students who cycle or walk to the graduate campus.

    The final contract agreement is the culmination of months of negotiations between district staff and Vanderbilt officials.

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    Mike Diamond is a journalist at The Palm Beach PostPart of the USA TODAY Florida Network. He covers Palm Beach County government and issues impacting homeowner associations. You can reach him at [email protected]. Help support local journalism. Subscribe today.

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