Similar situation here in San Diego with an over abundance of consideration given to the Scouts for a lease in Balboa Park.
It's not for any American municipality to endorse (which free rent is) the Scout's exclusionary agenda which they have a legal right to have. However, if they can't pay, they can't lease. The court is correct whether you like the Scouts or do not.
The City of San Diego must be required to repay the Scouts the full value of all improvements made to the property. The city accepted all the labor and materials to maintain the site for years. The city can't have it both ways. The Scouts made the investment in good faith and the city has taken it away without just compensation.