They needed to not only come up with contractual agreements with Israeli government to rent the land but also offered to pay rent to the Palestinian authorities because they also claimed the land. However, Israel wouldn’t allow rent payments to also go to Palestinians because that would legitimize them. So, BYU offered full scholarships every year to a certain agreed upon number of Palestinians to appease them and keep the peace. The Palestinians agreed to this especially because BYU is seen as a great school for Muslims.