Update 6:23 p.m.
Central Health voted to approve a 99-year lease of a portion of the former University Medical Center Brackenridge campus for use by Dell Medical School.
Update 4:30 p.m.
The Travis County Commissioner’s Court voted unanimously July 10 to approve Central Health’s proposed lease with The 2033 Fund. The Central Health Board of Managers will vote on the final approval at its special meeting at 5:30 p.m.
Original post 11:18 a.m.
After months of uncertainty, plans for the former University Medical Center Brackenridge and its surrounding properties known as the Brackenridge Campus are beginning to take shape and could include a mixed-use development and office space for Dell Medical School.
Terms of a lease agreement between Travis County’s health care district, Central Health, which owns the campus, and The 2033 Fund, a nonprofit entity created for the benefit of The University of Texas at Austin, are expected to be approved by the Central Health board of managers at a July 10 meeting, according to a news release.
If terms of the agreement are approved at the July 10 meeting, Central Health will lease blocks 164 and 167 of the campus along Red River Street and 15th Street, respectively, to The 2033 Fund for use by Dell Medical School and other potential tenants. Over 99 years, the lease will generate approximately $450 million for Central Health, the release stated.
In its first year, the lease agreement is expected to result in $6.6 million in upfront payments and about $1.4 million in rental income. The rent will adjust annually and be reset every 15 years to ensure it matches fair market values.
Block 164 on Red River Street will be redeveloped into office facilities for Dell Medical School as well as space that will “include opportunities for mixed use, retail and commercial space,” the release stated.
The 2033 Fund will pay for demolition costs and pre-pay three years rent for Block 164. Additional revenue generated from the mixed-use, retail and commercial development could support UT’s health care goals, according to Central Health.
All buildings in Block 167 will be demolished and redeveloped except for the main hospital tower. Plans for the tower are still undetermined. When plans for Block 167 are finalized, The 2033 Fund may make additional upfront payments to Central Health.