You can read the whole episode here, here and here.
I remember the public dispute over selling part of Main Street to the Church.
This is a PR disaster, BTW. The LDS Church's brand strategy seems to be increasingly tied to its disdain for gays. This doesn't play well in the America I live in.
Update: Apparently, there's no easement. The city sold it to the Church in 2003. It's unclear to me what rights if any the public now has to walk down this section of Main Street. A timeline of events can be found here.