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Opinions on the state government aside, the benefits of having a campus in an urban setting like Stamford as opposed to Storrs means you don't need as much land. Buildings are bigger and can house more programs and lecture halls. Can also reduce the number of dorms in an urban campus as more students will be able to find affordable apartments as the total number of housing is more readily available than in Storrs-Mansfield.
It wouldn't be an easy undertaking by any means and there would be a ton of time needed to get it done, but if you are looking for a way to stimulate UConn and the entire state's economic growth in the future, that's where the solution is.
Total pipe dream on my end, but hey, I think it would be great for the school and the state in the longterm.
To be an urban university and a land grant university at the same time is almost a conflict as a land grant university, such as UConn and most state flagships universities are, need land for the agricultural programs, which do still play an important role. U Minnesota, for example, is located in the hear of Minneapolis; but, also owns a huge tract of land on the north side of St. Paul for their agricultural programs.
As for urban living, the 'old' was for students to live in non-university residences in place like Boston and New York; but, do to costs, public relations/conflicts, fostering strong university communities, and money (universities want student to spend money on the school instead of a third party) that trend has flipped and most urban universities like Temple, NYC, BU, Northeastern, and even Emerson are no building their own residences. Such residences can be larger in an urban environment and thsi trend does not apply to 'commuter' schools; but, the top universities now want 75% of their students 'on campus.'