Paper review: The editor is from the same university as the first author and asking for a meeting
Being from the same university may or may not be an issue (it's hard to judge without knowing more details).  Asking to discuss a manuscript in person, however, is a huge red flag.  

Communication about manuscripts should pretty much always go through official channels only, thus keeping an accessible record of the complete decision-making process.  Only in dealing with exceptional situations (e.g., plagiarism, negotiating transfer to another journal) is there likely to be any communication outside of these channels, and even then it should be written down.  This is to protect both the integrity of the process and also everybody involved---authors, reviewers, editors, publisher---since both acceptance and rejection are capable of ending up quite contentious.

The fact that this editor is asking to talk with you in person before you've even written your review sounds extremely dubious to me, and would cause me to decline to review for reasons of unprofessionalism.  There may or may not be anything incorrect going on, but it's at least evidence of a rather callous sloppiness that I would not like to be involved with in any way.