>So Google can't build property in Mountain View, what about building another campus outside of the Bay Area? Maybe an hour south of Mountain View or something, where they could still recruit in the area.

Google is doing that to an extent. They have a lot of campuses world wide, mostly due to their acquisitions. It also decreases the amount of sway an individual municipality has over their growth and operation, which isn't a bad reaction given how much MV is mucking around with them.