I am not surprised of the red tape involved given the organization (I have solved this puzzle and searched for this cache.). They tend to be slow and inefficient in most aspects of their business, when it deals with the public (personal experience). The parameters of a clear container and contact information on file, I think is a reasonable request.
I am surprised that they are not sure if they want this on their property, considering that they have had GPS/geocaching related contests in the past. I also think that some levels of their bureaucracy are not very knowledgeable of the activity given their previous attempts to use geocaching as a marketing tool through social media.
I personally would try to work it out. It was a fun puzzle and the location is perfect. I might complain about the place, but I am there at least once a month.
Also, I selfishly would love to add it to my list of smiling faces.
. It looks like some illegal hunting there.