I would go for Xavier and never look back. It is a better academic fit (since he can study business), it sounds like a better social fit (with sports etc.), and he will be at the same school in the same program for all four years.
Also would he need a certain GPA at the CC to switch to Binghamton? If so, that is a consideration and a risk. And if he doesn’t live at Binghamton his first year with the program then he will be essentially coming in as a transfer for his sophomore year which can make thinks harder as many social groups are formed freshman year.
I also think you need to recognize that there is a very big difference between being an economics major and being in a business school Economics is a liberal arts course of study and it is very theoretical at the upper levels. In a business school students take a busienss core including intro classes in things like accounting, finance, business law, IT, management etc. and then will major in one of those disciplines. One is not better or worse per se, but they are very different. It would be worth your S’s time to look at the classes he would have to take as an economics major and as a busienss major to see if one path or the other is more appealing to him.