There's nothing particularly remarkable about it.
Eminent domain used to buy land, and kick people out in order to make room for a National Park. The Fed didn't completely follow through on the idea, and now it sits abandoned and half completed.
Kids started making up stories about it. Kind of like the abandoned camp we used to take our dates to in high school with its stories about albino cannibals, etc. Drive back there, spook the girls, try to leave but slip the transmission into neutral, rev the engine, and announce, "Oh no, the car isn't working." Same reason, you take a date to a scary movie. Fear, comfort, and oxytocin.
Now, if you want to argue about the Feds owning land, there's several threads on it. Eminent domain? Yes, it has been abused, but sometimes it's necessary. In this case, it was a fuck up and a waste of time, money and effort.
Never attribute to malice what can be explained by incompetence, yadda yadda.