In 2005, Carson City, Nevada city officials refused to grant First Presbyterian Church a permit to tear down its historic building and construct a new one. The old building, located in an historic district, had ties to Mark Twain who helped build it in the 1860's. However, the city did agree that it would aid the congregation fund the cost of a new building on an adjacent site. In 2006, the city gave the church $67,700 for design costs, and last month supervisors voted the church another $78,800 for sidewalks, landscaping and roof repairs. Now, according to yesterday's Los Angeles Times, Americans United says the funding raises a church-state issue, and threatens to file suit if the Board of Supervisors does not rescind last month's vote.
UPDATE: The Los Angeles Times reported on April 6 that Americans United has decided not to sue at this time because of the reluctance by courts to force religious institutions to return funds already awarded. However AU says it will sue if the city decides to make any more payments in the future.