First of all, yikes.
What is the space, exactly? I would think that a public park wouldn't have that zoning restriction, but- dealing with city administration- good heavens. As for previous experience, there's the infamous Melbourne, Australia game
, but as I understand it, they had their own issues with bureaucracy. Mainly because they had what's claimed to be ~6000 players...
University administration is one thing, but I would really hesitate to try and take on a regional body of government. At this point, you might just want to find another space. I don't know if it's worth it.