I'm all in favor of making this frivolus lawsuit moot. I'm not in favor of doing it by turning more real estate over to the federal government.
A far better method would be to pass legislation to set these type of cases outside the jurisdiction of the court involved-- much as congress set Gitmo outside the rulings of the U.S. courts.
Then congress needs to be prepared to bitch-slap any court who considers cases put outside their jurisdiction . . . up to and including impeachment of any judges who dare violate what has been set outside their limits.
Alas, it is a state court, and the federal legislature has no authority to make such a law.
The voters of San Diego approved this transfer with over 70% YES. A judge has kept that from happening. Federal legislation already designative it a national war memorial.