Maybe the idea was to cow the collective by incurring some kind of political debt. Or maybe the SPD reached out to them as a reaction to the rightist CSU splinter. At any rate, an old brewery on the other side of the river was finally located. When the residents of that neighborhood found out, they all signed a petition that the AKW not be located there because of the noise associated with bands and so forth. The AKW didn't like it much themselves because the natural lighting was so bad.
Memory fails here again.
They took either that place or another one nearby. Then the walls closed in. After they had signed the lease and made some other payments, the city informed them they would have to wait for some certain period while permits for beer or whatever were being approved. Beer and music nights were essentially their livelihood, and maybe they got forced out of the music business by the residential location. They literally went broke running the legal gauntlet.