Bluffton Town Council on Tuesday voted to partner with the county to buy the property, which sits next to a future elementary school and a 100-acre swath of wetlands.
The vote was the last major hurdle in two months of negotiations with county officials and the landowner, Quinnco-D'Amico, Shultz LLC.
Bluffton will pay $250,000 while Beaufort County will contribute $1.75 million for the 9.65 acres that had been slated to become 87 townhomes. As part of the deal, the town will build a boardwalk with educational displays at a cost of about $158,000.
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Architects are redesigning Red Cedar Elementary School to fit 800 students, an upgrade Beaufort County School District officials hope will ease some of the area's growing pains. The school will be built on 18.5 acres on Red Cedar Lane near its intersection with Bluffton Parkway.
District officials had hoped the school would open in August 2008, allowing students to begin the academic year in the new building.
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