Yeah, I am dropping it...no use fighting battle that does not need to be fought...we will find another location...
Also, there is a potential legal issue for the church here.
Any time a non-profit entity that does not pay property taxes allows their facilities to be used in competition with a taxed, for-profit facility, they open themselves to an attack on their tax-exempt status.
Again, good luck.
At present there is some concern that, if you rent the facility, it becomes a “public accommodation”, meaning you would be required to rent to anyone, including people/groups whose use would be inimical to your faith, similar to the gay wedding cake issue. May end up being adjudicated, but we are being told we can avoid the problem by not renting at all.