New Appraisal: Medical is Best Use for Tent Site
July 24, 2014
(West Palm Beach, FL) – A new appraisal of the city-owned land known as the Tent Site concludes a plan to build a health and wellness campus on the property is “consistent with the highest and best use of the subject site.”
The new appraisal, which was paid for by the Community Redevelopment Agency (CRA), also values the property at $15 million dollars, an amount significantly higher than the last appraisal for the land several years ago.
Anderson & Carr, the firm hired for the appraisal, concludes “based on allowable uses, building height and density, the proposed use as the West Palm Beach Health and Wellness Campus [submitted to the city by FRI Investors] appears consistent with the highest and best use of the site.”
Appraisers examined whether other possible uses, such as general office space would be a good option for the property. Their conclusion is “standard office demand is not sufficient at this point to support new construction.”
The report also rules out residential as a good idea for the Tent Site, concluding “the market for new residential development has not rebounded to the point that new-off water condominium development is feasible at this time. Additionally, rental rates for rental housing are not sufficient to support new construction on a prominent parcel such as the subject.”
Members of the City Commission, sitting as the Community Redevelopment Agency Board, decided to open negotiations with FRI investors to see if an agreement for the property can be reached.
FRI is proposing a medical campus that would include outpatient services, medical office space and retail. FRI says they have several organizations ready to commit to the property including Mt. Sinai, Jupiter Medical Center, The Fresh Market and Miami Children’s Hospital.
The city has set aside three months to talk with FRI to determine if a deal for the land can be reached.