I would avoid that situation.
If one of the parties really wants the deal to go down where he feels he will be the safest, then it would probably be worthwhile to call the PD and A) ask for 'permission', B) ask for legality, and C) ask for advice on not getting shot by an officer returning to file a report.
A serious consideration could be whether or not there are a jail or other holding cells on site; or if there's a courthouse attached.
In some jurisdictions, it is illegal for a civilian to have a firearm on the premises, even if it's not a controlled area, if there are holding cells, official detention facilities, or court facilities.
That, alone, keeps people in my area from being able to go to the local PD or sheriff's office for a transfer. The sheriff's office is also the county jail, and the PD has holding cells (...and is also attached to a courthouse annex).
For FTF transfers, I prefer parking lots that have a lot of traffic, but aren't always packed.
...But calling around to see if a dealer will handle the transfer for a nominal fee isn't a bad idea, either.