Hey, it could happen

Rico says that they can build the damn mosque at Ground Zero, and some cranky American (no, not Rico) can flip a Molotov cocktail in it and make them start all over. When the insurance company gets tired of paying, they'll build it somewhere else. But here are two stories on the issue:
From the New York Daily News, by Thomas DeFrank and Kenneth Bazinet:

President Obama says he had no second thoughts about wading into the Ground Zero mosque flap, even though polls show he's out of touch with voters on the issue. "The answer is: No regrets," Obama told reporters after a town hall-style meeting on the economy in Ohio.
A new Gallup Poll that found 37% of Americans disapprove of Obama's comments supporting Muslims' right to build the mosque and only 20% approve.
Obama's stand gained support from an unlikely source, former Bush administration Solicitor General Ted Olson, whose wife, Barbara, died on 9/11 on the hijacked plane that hit the Pentagon. "It may not make me popular with some people, but I think probably the President was right about this," Olson said on MSNBC. "We don't want to turn an act of hate against us by extremists into an act of intolerance for people of religious faith."
Meanwhile, New York Archbishop Timothy Dolan said he liked the idea, also pushed by Governor Paterson, to find a new, compromise site. Dolan recalled Jewish concerns when Carmelite nuns moved into a building near Auschwitz, the Nazi death camp, in 1984. Pope John Paul II interceded and asked the nuns to move, though a controversial cross remains. "Keep the idea, move the address," Dolan said. "It worked there, might work here."

From CNN.com:

New York Governor David Paterson says he'd like to discuss plans for an Islamic community center and mosque near ground zero in Manhattan with its developers to see whether a compromise site can be found. "If people put their heads together, maybe we could find a site that's away from the site now but still serves the area. That would be a noble gesture to those who live in the area who suffered after the attack on this country, and at the same time would probably in many ways change a lot of people's minds about Islam, which is really a peaceful religion practiced by peace-loving people," Paterson told CNN's Larry King Live.
Paterson had been scheduled to meet with the center's builders Monday, but the meeting was postponed because developer Sharif el-Gamal was traveling. "We're hoping to get together, but only if they want to get together," Paterson said. "There's no attempt at pressure or coercion here. I'd just like to talk about what might be a magic moment in our history."
The Islamic center's leaders say they plan to build the $100 million, thirteen-story facility called Cordoba House two blocks from the site of the 11 September attacks. El-Gamal describes the project as an "Islamic community center" that would include a 500-seat performing arts center, a lecture hall, a swimming pool, a gym, a culinary school, a restaurant, and a prayer space for Muslims.
Some New Yorkers say an Islamic center two blocks from the site of a terror attack by Islamic extremists that killed more than 2,700 people is a painful affront, and a CNN/Opinion Research Corp. poll released on 11 August marked nationwide opposition to the proposed facility at 68 percent.
"What that tells me is the wounds of 9/11 haven't healed, and I think if they haven't, perhaps we can find ways to bring about that healing by perhaps creating a situation where people will feel more comfortable," Paterson said. The governor did, however, note that "there is no local, state, or federal statute, or any clause of the Constitution that would prohibit the mosque from being there, and so, therefore, anybody that thinks otherwise clearly is not realizing what has really been the bedrock core of the principles of our liberty."