This was about 20 years ago, but the relations were almost non-existant. Durham's tobacco and textile industry had seriously faded and there were some very rough spots. We ventured into town to go to Satisfaction (I understand still a great bar) or did some shopping but truthfully there was little reason to leave campus. THe drinking age was 18 so kegs flowed all over campus especially on weekends, and anything you needed was available on campus. Durham's economy is much better now but also very reliant upon Duke as an employer and generator of income (e.g. tourism). The reality is that Duke does not have serious ties to the local area anymore (despite its founders and namesake) and the university could be plopped down anywhere and it would make no difference.
None of us were truly surprised that Durham officials leapt at the chance to stick it to Duke, especially during an election, but I also think we underestimated how deep the Duke hatred went.
Thanks for the insight. Seems the hatred has been brewing long before this case. Is it just a rich vs. poor thing?