What's the different between them having a police force, and them having private security??
The ability to arrest, and less liability.
I wouldn't be opposed to granting them a private security with a permanent police substation on campus, allowing private security to detain on property and a legitimate police officer doing the official arrest. They could absolutely reimburse the municipality for the cost of the additional officers. Some kind of public/private partnership, splitting this mess down the middle.
