There are plenty of companies in New York that can be considered antidemocratic, anti-American, and anti-Israeli; it is a damn shame the council is letting irrelevant political views get in the way of their primary job, public service on behalf of the city. If they've got a problem with the UN they can take it up with Washington. I doubt Bush will really care if the UN has an office building in NYC, most Washington Republicans loathe New York, no matter how conservative our elected officials can be.
On the surface, the UN has always been getting a free ride (and dammit free parking!) from NYC, but they offer a great deal of benefits that are very hard to quantify, including self proclamation of the World's Capital. I know that park well and I can say very few kids ever venture to that park; sports leagues are always fun and often hurting for space, give the hockey players 200ft by 85ft of pavement and everything will be o.k.