The University of Texas Board of Regents approved a lease of two blocks adjacent to the Dell Medical School complex at a board meeting Tuesday.

Those two blocks are part of the former Brackenridge Hospital campus owned by Central Health. Central Health reversed course last week on its contract negotiations with Wexford Science + Technology to redevelop the six-block Brackenridge Hospital campus, citing a need to speed up redevelopment and revenue return on the project.

Instead, Central Health will move forward with a two-block development deal with the 2033 Fund, a nonprofit organization started by University of Texas alumnus Sandy Gottesman. A Central Health Budget and Finance Committee recommended the shift to the 2033 Fund during a meeting Feb. 21.

UT has agreed to lease two tracts. One tract, Block 167, is the site of the former Brackenridge Hospital tower. The other, Block 164, is on Red River Street, south of the existing parking garage. Block 164 would be used for future health-related needs and to support the partnership between Central Health-Dell Medical School and the University of Texas at Austin, according to Central Health.

Portions could be subleased to other entities or businesses aligned with the Dell Medical School's mission.

“We appreciate Wexford Science & Technology participating in our procurement process — it’s a time-intensive process that requires a thoughtful, comprehensive response and we wish them future success,” Central Health CEO Mike Geeslin said in a statement. “At the same time, I commend our board for having the foresight to give Central Health flexibility in pursuing a number of redevelopment options, whether it’s working with a master developer or redeveloping the campus tract by tract."

Wexford is well-known for its large-scale life sciences campuses, typically attached to academic research institutions.

“Redeveloping the Brackenridge Campus provides a unique opportunity to improve health care in Central Texas and to continue to align the missions of UT’s Dell Medical School and Central Health,” University of Texas President Greg Fenves said in a statement. “UT Austin has always been open to working with a master developer, or directly with Central Heath or its designee to use the land to promote clinical care, health and research operations.”

Gottesman led the Trammell Crow office in the mid-1980s. At that time, he was a key player in the development of The Arboretum, Braker Center and Southpark Center. He is a principal with Live Oak Real Estate Development, Brokerage & Services.