Resale value is not in the equation, IMO. They're pretty much worn out when the PD gets done with them. Operational cost? Don't see that being any more than would be on a HD, and may, in fact, be less. That remains to be seen.
Also, I don't know about this particular case, but most government entities I'm familiar with put out bid requests for fleet vehicles...odds are pretty good that Victory (Polaris) low bid HD to get a foot in the door if for no other reason.
Cops around here ride anything from 'Wings, the ST1300 mentioned above, HD, and I've even seen a Beemer or two. It depends on what year they put the bid out...PD's are not necessarily interested in looking pretty, only about function and operational costs...particularly with the tight budgets most are faced with these days.
Whether you like the looks of a Victory or not, it's competition, which IMO, is always a good thing...keeps everybody on their toes.