Except in this case, no - they (the Church, a non-profit) filed a legal lawsuit (against a private developer) for what it views as damage it will incur to its property if the (private) developer builds on their (private developer's) property. Everyone has right to do this, and it is up to the judiciary to hear the case and try it - it has nothing to do with the separation of Church and State. Now, I suppose the courts are part of the government, but, I don't see that as playing into any part of the approval process by the city/state or the 'state' requiring money to be given to the Church - again, unless its ruled on in a court of law by the laws of our country that the Church deserves damages.