Which they can get if the Church rents out their space to others
The church has a "moral clause" in its contracts. The space cannot be rented out to certain types of events, such as the one that was denied here.
The business agreed to the contract, and in fact abode by the entirely legal contract. The fact that the business could not or chose not to find an alternate space to hold the event is what caused the harm.
The only way the church loses here is if they failed to enforce such a morals clause on other contracts.
“Which they can get if the Church rents out their space to others...”
Probably not. Churches are generally allowed a morals clause. Otherwise you could force them to host “Promiscuous Sex Night” at Holy Rosary Church.
“Indeed, the very motivation for opening the church building to a “secular” event might be religious in nature.[24] This is because a church does more than teach from sacred texts. It also tries to embody those teachings—such as the common admonition to love one’s neighbors. This results in community service. Holding the church building out as a safe and comfortable space is a way to love the neighborhood.[25] But because the church is motivated by its faith, it will almost certainly be selective when allocating the use of its property. (This selectivity would also undermine the “openness” prong of the statutory definition.) A traditional mosque or Southern Baptist church would probably not host a beer festival, and it is hard to imagine many churches hosting an atheist convention.”
http://harvardjol.com/2016/11/28/churches-are-not-places-of-public-accommodation/