So they just take bikes that arnt registered with them? That seems very aggressive and strange to me to begin with. I've never heard of trying to tax bycicles like that.
University is the key. They're often trying to deal with absolute masses of bikes but even so this sounds like an overreach (and probably should have been handled via small claims court or similar).
Yep it was a mistake, and they admitted such. I thought of small claims but for a then old 10 speed bike no longer made, i figured i'd squander more time and effort than the cost of replacing it.
Small claims court is self serve, no lawyer needed. It's as simple as filling out a form and plonking down $75 or so. And you can add that fee to the damages so it costs you nothing.