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It's a great idea. Seems to me if the town is willing to allow for a structure to be placed on town land, and they pay the taxes on said land, then the group, and interested supportive people can raise the funds for the project. I'm speaking as a fundraiser. If funders see a benefit, especially for youth, they'll be willing to fund it. I would suggest working on a detailed program for youth, and then approaching interested folks for donations. Set a goal. I think 7k would be fairly easy to raise for a good youth program.
Great opportunity for all ages to share viewing astronomical events, staying abreast with major scientific developments in Astronomy, Cosmology, and periodic "Astronotes" articles by Claudio Veliz and members of SoVerA.