In return for $257,000, a Catholic school has agreed to drop a suit against the city of Suwanee over a zoning decision the school said violated its religious rights.

Under the deal, Notre Dame Academy will not attempt to build in a residential neighborhood the city said was off-limits to the school. The school will remain at its existing campus on River Green Parkway in Duluth and “wait out the financial storm,” said one of the school’s lawyers, Thomas T. Tate of Andersen Tate & Carr.

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