IIRC, when the university first announced the needs at the ISC they asked Ames for assistance with the part of the cost of the renovations to improve accessibility. The city said "that's your problem." Which is fine, IMO. But when the university transferred the properties to athletics and stopped subsidizing the cost of tickets to events there, the community had a cow, which led to the exchange from Pollard above.
I believe CyTown should pay property tax, I just don't think it's an open and shut case that it works out that way given how some of stuff has been ruled previously.