The borough's response also publicly named the officers involved in Osagie's death for the first time ever.
A Bally's press release said the casino's unspecified location will be "near the Nittany Mall."
Council voted 4-3 to approve the $69 million budget, which includes no tax increase.
The threat came amid Monday night's virtual meeting in which dozens of community members spoke for three hours about the boroughs' 2021 budget.
The decision reverses a lower court's 2019 ruling that found Spanier's conviction to be unconstitutional.
The center is currently treating 13 coronavirus-positive inpatients aged 33 to 96.
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