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Sounds identical to what happened to the Outback Adventure Park, and the best of my knowledge they did get the blessing of the local government before they opened and tried dealing with the locals (basically just one or two adjoining landowners who were causing the problems).
Good old backwoods politics at work...Billybob is a friend of the local mayor/judge/township trustee etc... and decides they don't like it so the local government makes up some lame excuse.
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