A quick feasibility checklist:
Enough parking? Will need an analysis. These kinds of businesses generate huge parking demand. Enough space to build enough structured parking? Economic feasibility of structured parking?
Traffic? Will require a traffic study to make sure the generated traffic can be accommodated on existing streets/roads, especially at peak times (I'm dubious about that - there is basically only one road to take traffic to and fro in east-west fashion. No connecting north-south artery present).
Negative impact on bars and restaurants and other entertainment businesses downtown and the strip? Will need to be studied.
I assume all the land that would be occupied by these businesses are on University owned land. Legal precedent for universities leasing land to an entertainment district of bars and other businesses?
Who would police this distirict - City or campus police, or state police? Proper ingress and egress for EMT?
Water and sewer and dry utilities capacities sufficient? Expansion of UT power generation needed?
Ethical question: Universities are supposed to be schools, not mixed use entertainment districts. Those two things have traditionally been separated. Legal, ethical, cultural, and economic equity questions to be studied?
Separate ethical question: President of UT is also the developer of downtown baseball stadium within ENTERTAINMENT DISTRICT. Conflict of interest?
These came to mind off the top of my head. Any others?