(Austin) – During a special meeting Tuesday evening, the Central Health Board of Managers voted to approve leasing a portion of its Downtown Campus – formerly the Brackenridge Campus – with a local limited partnership called the 2033 LP.
During the first year, which could start as early as January 2019, the lease could generate for Central Health up to $6.6 million in upfront payments including $1.425 million in rental income to help pay for health care for people in Travis County with low income.
The 2033 LP was established by a University of Texas (UT) alumnus for the benefit of UT Austin and Dell Medical School at UT Austin, at no economic gain or profit for itself. The LP will serve as UT’s development partner in utilizing the Downtown Campus redevelopment to support Dell Medical School’s clinical and research operations.
Under the agreement, the 2033 LP would lease approximately 2.6 acres of the 14.3-acre Downtown Campus and then sublease it to UT, once the two entities reach a final agreement. The Board of Regents, the governing body for The University of Texas System, is expected to vote on the proposed lease later this week.
Over 99 years, the ground lease will generate approximately $450 million for Central Health (in today’s dollars the amount would exceed $55 million).