That's great that any library would still have 16mm. I would ask them if they were willing to sell it, as I can't imagine there are many patrons asking for that format. When I was in college 20 years ago, we watched films off vhs on a projection screen tv, so 16mm wasn't even in demand then.
I can't believe there aren't projectors for sale on ebay, though I bet the ones which claim to be complete and functional will be more pricey than the broken ones.
If I had a print of Falstaff I'd stare at every frame with a magnifying glass.
Sto Pro Veritate