Baba tried to get them to give up their desire for a Center for him, but after being badgered he relented.

The following is excerpted from Lord Meher, both the original 1986 print edition and the current online version.

[On March 31, 1938,  in Panchgani] Norina and Elizabeth suggested to Baba that if he established a "Universal Center" somewhere his messages could be conveyed to other centers throughout the world. And if he were more publicly known, enthusiastic workers would have a chance to actively spread his messages among the general public. In reply, Baba stated:

It is a good idea indeed, but by attaching to it great significance or giving it too much importance, it develops into a regular organization or system, and I do not wish to limit myself or bind myself with any such thing. I create things on a firm foundation and then pull them down.

Neither do I want an organization, nor any society. That is exactly what I am afraid could happen. If such centers are allowed to prosper, they form themselves into organizations or societies. For that reason, I create institutions and then dissolve them. The more changes I make, the more changeless I become! My organizations are like the foam which brings unwanted debris up to the surface of the sea, letting the real substance lie beneath, submerged in the depths.

The following day, April 1, Baba continued saying why a Center was antithetical to his manner of working:

Vagueness, building plans in the air, regular shifts from one place to another, and changes from one plan to another are the principal traits and characteristics of all the Avatars. If one reads the lives of Avatars like Ram, Krishna, Buddha, Jesus and Muhammad, and if one minutely marks the trend of events throughout their lives, it will be found that they had no definite program or any scheme or organization, except a purpose to spread their teachings and impress upon humanity the worthlessness of the world and worldly life, through the very vagueness of their own plans and schemes. 

For ordinary people involved in organizations, definite plans are necessary to maintain the organizations according to the funds available. For this, plans are to be made in advance, all arranged ahead, to establish the organization and conduct it; otherwise, the whole scheme would fail. 

But in the case of the Avatar, quite the contrary is true. His methods are strange, peculiar and quite the opposite of the world's. First of all, Avatars do not plan anything, and if at all they do, it is all an outward show, a bluff — all without any sound basis or firm foundation (such as provision of funds, et cetera). All is in the air with the risk of apparent failure at any moment.

Yet, they do take the risk and indulge in the game, but their schemes hang in the air! And even if their schemes are going well and are on a sound basis, they may destroy them any moment. Such plans and schemes are created for some definite purpose as a means to a certain end. No sooner the end is achieved, the Avatars and Sadgurus will not continue running them, however flourishing they might be. Once their purpose is served, they are dropped. If the Avatars and Sadgurus prepared their schemes on a safe, firm, sound, permanent basis, what would the difference be between them and ordinary human beings?

Baba continued with this elaborate protest for another full page in Lord Meher. But Norina and Elizabeth persisted with their idea of establishing a center and told Baba, 

For ourselves, it is not necessary; but it will be necessary for the other Western women who will be coming.

Baba replied:

It is also true that many women in the West want to come to stay with me and share in my work, and for them a center is necessary for the purpose of their work and as a means to my work. There is no center for the women who are going to come here to stay. Although we have Meherabad, there is no arrangement for anyone wishing to come and stay there.

Norina, Elizabeth and the mandali suggested various places for creating a center, including the Himalayas, Mount Abu, Nilgiris Hills and other scenic locations.

In June 1944, Elizabeth wrote to Baba,

Dear Baba,

You have received a number of cables from me about the property in South Carolina, which I hope you will accept for one of your spiritual centers in the United States. When I first cabled, the land had been promised to me by Father, but as it belonged to a company of which he was part owner, called the Myrtle Beach Farms Company, it took considerable time to be made available. In fact, the whole tract of 1800 acres which was used as a hunting and fishing preserve by all the partners of the company and others to whom they gave permission to use it, is now being divided up in a legal way and Father's share is approximately 800 acres of this timber land and includes two lakes. This preserve is unique in the respect that it has six fresh water lakes, fed by springs, which are so close to the Atlantic Ocean that everyone wonders how they can remain sweet water!

So, in spite of his explaining why it was antithetical to his manner of working, in 1944 Baba wound up with a Center in America. 

In 1951 Baba's biographer Charles Purdom wrote of Baba:

To be importunate with him usually meant that he gave the answer desired, just as any devotee who greatly wished to take any action was, after warning, allowed to do it.

(Life Over Again, C.B. Purdom, J.M. Dent & Sons Ltd., London, 1951, p. 258)

In 1954 Meher Baba said:

You can establish 100 centers for Baba, and I will have no concern with any of them. You yourselves will be concerned with them. It is all your concern, not mine.

(Lord Meher, 1986 print edition p. 4360)