I'm not sure why a land-use permit was required for the camp or what stipulations were placed on granting it but whatever they were doing required a permit it was not by right and the Town Board may very well have the rightful authority to revoke it. The town is being sued and a court will decide
The denial of the permit is based strictly on the communities disagreement with the type of religion that is practiced there,
No there were allegations of crime and unsavory behavior, too. Officials say there was no evidence of crime but that doesn't mean bad things weren't happening. The revoking of a permit is not the same as a criminal prosecution and standards of evidence are not the same. Nobody is being threatend with jail. All that's being said is that what we had allowed you to do earlier you are no longer allowed to do. The camp is claiming a violation of religious freedom and a court will decide the matter.
The same way some christians on this thread have suggested that homosexuals and pedophilies cloak themselves in a "religion" in order to disguise their activity, I suggest this town and town board has cloaked this issue in the guise of "possible illegal activity and satan worship" to hide their own motivation which is religious bigotry.