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They'd never get away with that in California. Cities and counties here need the property tax revenues too badly; and once the university takes title, the land is off the tax rolls forever. Also, once a gov't agency takes land, it can disregard all local zoning regulations and general plan guidelines.
Some university tries that in these parts, they'd get their heads handed to them. When our local university expands its property holdings, it pays the asking price. And even so, people are pissed at them because they'll build whatever they want, even in a residential neighborhood.
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