Not at all. The Scouts are free to continue restricting their membership. Philly is saying that they just need to do it in another building.Philadelphia is violating the Scouts constitutional right to association which the SOTUS already established. Philly officials should go to jail.
That's fair enough, if the city owns the property free and clear. It doesn't; the city is contractually obligated to rent the property to the Boy Scouts for $1 per year. I'm sure the Boy Scouts could be compensated for the abrogation of that contract. How much? The city has stipulated how much rent the building is worth; if the city wants out of the contract, the price for doing so is obviously that annual rent figure - divided by the interest rate the scouts can obtain at zero risk, in perpetuity.
The city does own the property and if there was a contrct with the Boy Scouts then we wouldn't be having this discussion. There was, apparently, an informal agreement which the city has chosen to void.