Answer: Yup I do think they did realize what they owed to James and did that to repay him.
Explanation: So, yes, I believe they did it to reimburse James because he built a trail that hundreds, if not thousands, of people utilized and received nothing in return. So, I'd say they recognized they owed him something and named the park after him.
Just my opinion: As amazing as it is that they (whoever they are) are naming the park in his honor, I do not believe that is the best way to repay someone who has helped many lives, because simply naming the park in his honor will not do anything if he cannot enjoy it to the fullest because he is not present. However, I am aware that that was their best effort.
Hope this helps!