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Sorry, but I think actual human beings who lack (affordable or at all!) shelter might just trump a park that was popular in the hippy scene.
If there weren't outstanding legal challenges this would be a no-brainer for me. Fuck the hippies. I'd rather see people sleeping on the streets having options that don't include, you know, sleeping on the streets.
With the outstanding legal challenges, though, I tilt against the university.
They're not planning a homeless shelter or any kind of housing for "human beings who lack (affordable or at all!) shelter." They're planning student housing — dormitories.