Frank Arthur Vanderlip Jr., 86, key developer of Palos Verdes Peninsula. Born in Scarborough, N.Y., Vanderlip was educated at Scarborough School, Phillips Exeter Academy and Harvard University. He was president of Palos Verdes Corp., which developed the Palos Verdes area where his family had maintained a home since the early part of the century. He was also chairman of the Reo Automobile Co. and assistant to the chairman of TWA. During World War II, Vanderlip rose from captain to lieutenant colonel and earned, among other awards, the Crown of Italy, the French Legion of Honor and the Ouisan Alouette of Morocco. On April 23 in Los Alamitos of cancer.