I suspect it's more the latter. I've been told that there's a key councilman who has it in for the Scouts for, shall we say, personal reasons. The rest of the council supports him. I've never heard that there's an alternate use that is driving this. Given Philadelphia's financial situation, I doubt they'd be good custodians of it, but perhaps they'd rent it out for a dollar to some "rainbow" group, which might or might not maintain it. Pure speculation on my part, but since this has been dragging on for years, I don't think there's a renter waiting in the wings. They've have given up long ago.
Getting rid of him would probably solve the problem, then. When's the next election?