Re: How did it get to this point ...
Yes, this happened where I live just last year. A property, including a historically important mansion and land that was used as a park, and an endowment fund to keep everything operating and maintained, was bequeathed to the city by a rich guy who died. The terms of the will stated that the property may only be used for that purpose in perpetuity.
The city just successfully completed a decade-long legal effort to void the "in perpetuity" part. Now, they've sold it to a developer who razed the whole thing in order to build some new eyesore. The whole thing is disgusting, but really brings home the fact that any claim that something is "in perpetuity" is bullshit.