Officials at the adjacent Presbyterian Campus Ministries told board members that the restaurant's loud, festive crowd had "immediately and substantially" disrupted members' efforts to hold prayer services earlier this year.
Lucy's co-owner Norman Bullard said his restaurant, located on the corner of Henderson and East Rosemary streets, has the right to expand its business within the limits of its property and zoning permit.
The debate came after Lucy's submitted an application asking the planning board to approve the addition of a second bar to an upstairs balcony area.
Church officials say the upstairs bar would be at eye level with the second-floor multipurpose room that UNC students commonly use as a place of quiet study and personal reflection.
Chapel Hill planning staff recommended the application's approval, but after the hour and 15 minute debate uncovered a variety of unresolved issues, the board members voted unanimously to table the issue until its Oct. 1 meeting.
Under Lucy's plan, the restaurant will eliminate two upstairs residences, converting the area and balcony into additional seating and bar space.
Lucy's used the balcony space until last fall when church officials filed an inquiry with the town concerning the legal use of the space.
Bullard said the use of the upstairs space centers on Thursday night, when the restaurant hosts the John Bunting Radio Show.
The crowd drawn by the show, in addition to the steady stream of students who patronize Franklin Street area bars Thursday nights, conflicts with programs hosted the same night by the Presbyterian Campus Ministries.
