Vanderbilt University chancellor: Why we want to build a graduate campus in West Palm Beach

Vanderbilt University wants to open a campus in downtown West Palm Beach that would feature a business school as large as its existing one in Nashville, plus a college for computer science and artificial intelligence, Vanderbilt Chancellor Daniel Diermeier said on Wednesday.

"We have been thinking for a while about a potential second campus, and it became clear that South Florida, and West Palm Beach and Palm Beach, would be a great location," Diermeier said in an exclusive interview.

The campus would be built on 7 acres of government-owned land formerly slated for a University of Florida graduate campus.

Diermeier's comments followed his April 1 visit to Palm Beach County, where he met with several government officials to drum up support for the Vanderbilt campus in West Palm Beach.

During the evening of April 1, Diermeier attended a fundraiser at the Palm Beach home of billionaire Stephen Ross. Florida Gov. Ron DeSantis also attended the gathering, according to the governor's public schedule.

The Palm Beach event raised $100 million out of the $300 million sought by the university for the expanded campus, the sources said. Diermeier would not comment on the fundraising details.

But Diermeier was eager to talk about why Vanderbilt wants to have a campus in two of the nation's fastest-growing cities, Nashville and West Palm Beach.

University campus expected to capitalize on Wall Street South

A West Palm Beach campus would capitalize on Palm Beach County's growing reputation as Wall Street South and provide students jobs in finance companies. A Vanderbilt campus also would "turbocharge" the creation of new businesses established by students, creating an innovation industry, Diermeier said.

Diermeier lauded the sophistication of Palm Beach's residents, whose business and financial acumen, as well as their deep pockets, could invest in and guide companies created by graduates of the business and computer schools. Having a university of Vanderbilt's caliber is needed "to unlock the full potential of West Palm Beach and Palm Beach County," Diermeier said.

The Vanderbilt West Palm Beach campus would provide graduate degrees geared to the finance, data and technology industries and enroll roughly 1,000 students, he said.

The Vanderbilt campus is being pitched for 2 acres owned by the City of West Palm Beach and 5 adjacent acres owned by Palm Beach County. The properties are along South Tamarind Avenue, from Datura Street south to Fern Street, in a section of the city dubbed Government Hill.

The land is the same property that both the county and the city had planned to donate for free to UF for a graduate campus in business and artificial intelligence.

But the deal fell apart last year after efforts to secure an adjacent 5 acres from Palm Beach billionaire Jeff Greene failed. The Vanderbilt campus would not need the Greene land.

Deiermeier said he was aware of the former UF campus plan, and he was approached by someone about the downtown land during a Vanderbilt football game.

Vanderbilt's top ranking and its strong alumni network

While not an Ivy League school, Vanderbilt is known as a “Southern Ivy” because of its selective admissions process and strong academic reputation.

Vanderbilt is ranked No. 18 among national universities, and its business school, the Owen School of Management, is No. 27 in the nation in a three-way tie with the University of Texas-Dallas and the University of Rochester, according to U.S. News & World Report.

Current enrollment at Vanderbilt's business school is 617 students, a university spokesman said. The business school has 97 faculty members, and the annual cost of attendance is about $103,000.

Vanderbilt boasts a $10 billion endowment and counts many wealthy alumni and business leaders among its supporters.

These supporters include Vanderbilt trustee Jon Winklereid, a Hobe Sound resident and chief executive of TPG Holdings/TPG Capital LP, an asset management firm with a market value of $16 billion.

There's also Cody Crowell, a Vanderbilt University graduate, a managing partner at Frisbie Group in Palm Beach and a key figure in the Vanderbilt deal. During a recent talk before a Palm Beach chamber meeting, Crowell was credited with coming up with the idea of bringing Vanderbilt to West Palm Beach.

The plan, in the works for about a year, is being advanced by Ross' Related Cos., a global real estate developer, and the Frisbie Group. Both companies are building offices, condominiums and apartments in West Palm Beach.

In a March interview, Related Urban Chief Executive Ken Himmel said having a Vanderbilt University business school campus in West Palm Beach would transform the city into a major destination.

"Every single city we've worked in has been anchored by a great university," Himmel said.

How would Vanderbilt get control of the taxpayer-owned land?

Diermeier said Vanderbilt would only build a sizable West Palm Beach campus if it received support from the business community — and government officials. He said that no Vanderbilt officials have discussed receiving state money for the venture, "although we would welcome that."

Driermeier said he met with some but not all county commissioners on April 1. He said there was interest in the campus plan, which he said still is in early stages. He added there were discussions about the government-owned land and how the university would be able to "have access to it."

Driermeier said Vanderbilt did not ask for anything at this point. But he was vague when asked if Vanderbilt would be willing to pay for the 7 acres of taxpayer-owned land.

Vanderbilt would only open a West Palm Beach campus "if the community wants us," Diermeier said. " One way to demonstrate that is by co-investing. We 100% need that. … This is a marriage that has to work for us."

People familiar with the Vanderbilt campus plan say its backers want the city and county to donate the land for free. Private money raised for the venture would go toward the university's endowment, which generates income that finances the university's programs and this expansion.

But not every business leader is on board with handing over taxpayer land, especially to a university with a $10 billion endowment.

More: Is University of Florida's grad school campus in West Palm Beach in peril?

Some business officials, who asked not to be named, privately said that any effort to attract an out-of-state private university using public land should be done via a public request for proposals, not a behind-the-scenes deal with one institution.

Two county commission members said the meeting with Driemeier was introductory and didn't get into specifics.

"I’m very proud that a prestigious university like Vanderbilt is considering building a graduate school in Palm Beach County. This was really a just-get-to-know-me meeting," said Palm Beach County Mayor Maria Sachs.

"This was all very preliminary," Commissioner Gregg Weiss said. "It's getting to know what Vanderbilt is about. There is a real workforce need for the business school graduates that would be attending this school. The details still need to be worked out, but it is a step in the right direction."

Palm Beach County's uneven record on public land donations

Ambitious ventures involving free taxpayer land have a mixed record in Palm Beach County.

To lure California-based Scripps Research Institute to Jupiter in 2006, $580 million in state and county money went to Scripps to create its Florida campus.

In addition, 70 acres in public and private land was leased to Scripps after Scripps officials promised that a "biotech village" of companies and jobs would be built on the vacant Palm Beach Gardens property. The land is next to the Alton community on Donald Ross Road.

The land was to be conveyed to Scripps after a 15-year contract between the county and Scripps was up. While the county staff said Scripps met the contract requirement to create 545 jobs and operate in the county for 15 years to be eligible for the land transfer, the biotech village never materialized.

Nevertheless, in 2022 the 70-acre parcel was transferred to Scripps for $1, as per the agreement with the county. UF Health now controls the land as part of its acquisition of Scripps Florida.

Meanwhile, the UF graduate school in downtown West Palm Beach didn't go as planned for Florida taxpayers, either.

The 12-acre campus, first announced in 2021, was supposed to offer graduate-level programs in business, engineering and law with a focus on financial technology, or fintech, and cybersecurity.

More: Much-touted UF campus plan for downtown West Palm Beach dies, leaving huge disappointment

In 2022, the Florida Legislature awarded UF $100 million for the West Palm Beach campus. But the legislation contained a giant loophole.

If the West Palm Beach campus didn't happen, the $100 million could stay withUFto use as it sees fit elsewhere in the state in a location outside Palm Beach County.

The campus didn't happen, and UF kept the money anyway.

Soon after the UF deal showed signs of dying, West Palm Beach Mayor Keith James said talks were afoot to bring a top, private, out-of-state university to the downtown land.

More Vanderbilt meetings planned with public officials

Diermeier said he plans to return to Palm Beach County during the next month to meet with more county commission members about the Vanderbilt campus.

He said Vanderbilt is skilled at having good relationships with state and local officials in Tennessee, and he expressed confidence that county and city government leaders in Palm Beach County would feel comfortable working with the university, too.

He also believes the more people learn about Vanderbilt's plans for the West Palm Beach campus, the more they will be supportive.

In addition to a doubling of Vanderbilt's business school size, the West Palm Beach campus also would feature degrees in the university's newest college, the College of Connected Computing.

This just-created interdisciplinary college would feature computer science, AI, data science and related fields. It also would collaborate with all of Vanderbilt’s schools and colleges.

Diermeier likened the potential effect of a Vanderbilt West Palm Beach campus to the effect that Stanford University had on Silicon Valley — and the resulting explosion of innovative technology companies that emanated from there.

"The impact that research universities can have on a community is very significant," Driemeier said.

Prior to becoming chancellor at Vanderbilt, Diermeier formerly was an assistant professor at the Stanford Graduate School of Business, then held key leadership positions at Northwestern University and the University of Chicago.

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Staff writer Mike Diamond contributed to this report.

Alexandra Clough is a business writer and columnist at the Palm Beach Post. You can reach her at aclough@pbpost.com. Twitter: @acloughpbp. Help support our journalism. Subscribe today.

This article originally appeared on Palm Beach Post: Vanderbilt chancellor shares plans for West Palm Beach business campus