That works for me.
It works for me, too - especially since it finally
pays some due respect to Diane Duane's books! Awesome, iguana_tonante
I always assumed it was a Vulcan colony on Earth's moon, Luna.
Then, again, I like this too, and it probably works out better in consideration of .... stuff.
As to why the Vulcans would have a colony there, maybe it's a way for them to have an ongoing diplomatic presence at Earth, but enough of a "piece of home" with them to be comfortable. I imagine Vulcan embassies are a little more elaborate than a lot of races need, with considerations of Pon Farr and similar, and the need to maintain secrecy with them.