This kind of thing absolutely flys in bureaucracy. I guarantee your local bodega either doesn't have a sidewalk license (if they have stuff on the sidewalk of course) or only got it when the city cited them and forced their hand.

And as I said before, she thought she had permission. The government was literally funding and endorsing the project. It's just that not the right part of the government was involved, which is the classic example of excessive red tape.