OpEd: Reflection: On Breach of Contract: Can a breached contract be extended?

If you click on the post, you can see the wikipedia definition of breach of contract. In fact, last week, we had an interesting example of this concept in the case of the Pheasant Lodge that was discussed in the Town of Union Planning Commission. One of the planning commissiion members reflected that it seems as though the Town lived up to its responsibilities and they were pretty clearly laid out, but the other party breached in every respect living up to the agreement---yet...he said it seems we cannot hold them accountable......One can only wonder why that member felt that way. Clearly the planning commission had the right to non-extend the conditonal use permit and chose otherwise.

What was the transaction that happened here? Clearly the notion of breach of contract and material breach must not apply to the Town of Union, Wisconsin. Some other principle of law must apply. I wonder which prinicple it is?