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DE PERE, Wis.—New Life Christian Fellowship agreed to drop its federal lawsuit against the city in exchange for a cash settlement and the green light to move into a downtown storefront.

The Green Bay Press-Gazette reported that the church dropped its suit Oct. 21 after the city amended its downtown zoning provisions to allow worship services in a central business district.

The church bought a vacant furniture store in April for $245,000, but was denied a conditional-use permit to meet in a building zoned for retail use.

New Life filed suit, claiming religious freedom violations under the Religious Land Use and Institutionalized Persons Act of 2000. Washington-based The Becket Fund and California-based Pacific Justice Institute, legal defense organizations specializing in religious freedom cases, assisted in the suit.

Pacific Justice Institute spokesman Brad Dacus the city was wise to settle out of court and that other community governments should follow the example.

"Our sincere hope is that the other local governments across the country will learn from this episode and not arrogantly presume that they will go unchallenged whenever they deny people of religious faith their protected legal rights," Dacus said.

As part of the settlement, the church was paid $16,000 to cover additional rent and other cost associated with the suit.

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