There was a statecollege.com article this week that kind of hit on this. The township had basically given penn state all this land very cheaply, and had kept hotel tax rates low to help out penn state (town & gown) since penn state gave back with parking, use of rec hall/IM building, tennis courts, hosting the fireworks. Now that penn state shut off use of everything to the locals, and said "nope, can't even park here" the township has said eff you guys also and raised the hotel tax from the 2nd lowest in the state, to the highest allowed by law in PA (and they're trying to get that raised).
Edit: I see norm posted it while I was typing about it