On Tuesday, the Palm Beach County Commission unanimously approved a major land donation to establish a Vanderbilt University campus in downtown West Palm Beach. Vanderbilt, based in Nashville, has committed at least $300 million to the first phase of construction, which will include graduate-level programs focusing on business, artificial intelligence, and an innovation hub for local business collaborations. By five years after opening, the campus is projected to house at least 1,000 students and employ over 200 full-time staff. The estimated annual operating budget during this period will be at least $70 million.
The new campus could significantly boost local economic growth and attract corporate relocations, with Kelly Smallridge, President and CEO of the Business Development Board of Palm Beach County, noting that the prospect of Vanderbilt has already helped recruit a company bringing 2,000 jobs to the area. "Education is the currency of economic development," Smallridge said, adding that Palm Beach County is competing with three other states to secure this employer, which seeks local AI talent. J. Nathan Green, Vanderbilt’s vice chancellor of government and community relations, has been working with local organizations to foster partnerships similar to those the university has developed in Nashville.
The land donation includes two acres at 386 S. Tamarind Ave., as well as properties on Evernia and Fern streets, granted by the West Palm Beach City Commission in August. On Tuesday, the County Commission added five neighboring acres, appraised at $46 million, to the donation. However, the donation comes with conditions: Vanderbilt must use at least 90% of the land for educational purposes, including student housing and research. If not, the land could revert to the county. Outpatient health care and hotels are explicitly excluded.
The development of the Vanderbilt campus must also navigate a prior agreement involving the same five-acre site. Transit Village LLC, a mixed-use project by Related Group, BH Group, and Globe Invest Limited, holds a license to use the land temporarily for parking and construction material storage. The County Commission voted to revoke this license but encouraged Vanderbilt and Transit Village to reach a new temporary agreement, given that construction on the Vanderbilt campus is not expected to start for a year or two.
In terms of timelines, Vanderbilt has 180 days to conduct due diligence on the donated property. After acquiring the land, the university will have 12 months—potentially extendable by another year—to finalize a master development plan. The minimum investment for the first phase is $300 million, the total build-out is expected to reach $519.6 million.
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