When you have a firm, that is ran by accountants - odds are, you have a firm that is great at squeezing on line items, but lacks the long term vision to see how that squeeze will lead to deficits and higher cost in the long term.
The fastest way to plummet a successful company, is to take the Industry experts out of the position (I mean people who worked their way up through the industry, and learned management along the way by experts btw), and replace them with an MBA/ Accountant who got hired into their upper management position without really working in the industry prior to.
And I pretty much guarantee you, this is what happened.
Does solving the problem have an immediate political benefit? I actually don't think it does.
Does letting the community argue about the issue have immediate political benefit? Well - it certainly will sweep other issues (read: scandals) under the rug.
So I'm going to say, the community 100% will be brought into it, the location will end up being unselected, and the issue will be kicked down the curb for the next time the government needs an issue to debate about and to distract people with.