Every city not having a university is wanting one these days (Brampton, Markham) - and of course Oshawa had UOIT at the periphery and useless for the more suburban-retrofit oriented schemes.
In a world where we are moving towards 80% or more of student moving on to some form of tertiary education (college/uni/apprenticeship) there is demand out there for more space and it makes sense not to concentrate it all at existing schools/campuses.
That said, there remains a need to shift from 'blanket' arts educations to a greater proportion of study places linked to current and future employment opportunities as well as moves to choose new campus locations thoughtfully.
By that, I mean, we ought not to create too many small campuses which lack the critical mass of students/faculty and research to achieve excellence in what they to and provide maximum benefit to the broader society; as well as choose sites that are not only consistent w/good urban planning, but also which have the highest prospect of being good, long-term viable sites.
In the context of the immediate discussion, there remains under-used land in and around downtown Oshawa that I think would be better suited to a master-planned university for that City's core, providing a better relationship to transit to benefit of the region and the environment as well as the institution and students.