Community Board 1 members find Chabad a private lot to use for its TriBeCa sukkah, avoiding what could have become a court fight over Chabad's request to place it in a tiny park on a traffic triangle.
You can read about the consitutional issues here.
Information on the compromise – which was praised by Chabad, the community board, and Separation Clause activists – is in the New York Times.
One key fact of the compromise is that use of the sukkah is limited to the hours of 7:30 am to 7 pm. If those hours are followed, it will be very difficult for the sukkah to be used for evening holiday meals.