A multi-million dollar settlement over the rejection of a north Jersey mosque has put Shore towns on notice, as they mull their own legal battles with local Orthodox Jewish groups.

On Monday, Bernards Township, Somerset County, agreed to a $3.25 million settlement with the Department of Justice over its rejection of a 4,200-square-foot mosque proposed by the Islamic Society of Basking Ridge. The town's zoning board denied the mosque last year, citing "insufficient parking."

MORE:Bernards to pay mosque $3 million

Under the terms of the settlement, the Islamic Society will cut the number of parking spaces and limit occupancy while Bernards will conduct diversity training for its employees.

"Municipalities around the country should pay close attention to what happened in Bernards Township," said Adeel A. Mangi, lead counsel for the mosque.

In a statement, the township said it agreed to the settlement to avoid "exceeding insurance coverage and the possibility of denial of coverage."

The Justice Department's suit focused on the Religious Land Use and Institutionalized Persons Act, a federal law that prohibits municipalities from placing burdensome land use restrictions on religious groups looking to expand or build on its property.

While the Bernards mosque has drawn national attention, it's only one in a series of RLUIPA-based religious discrimination suits filed in New Jersey:

In March, the Bayonne zoning board denied an application to build a mosque. The Muslim group sued the city and zoning board last week.

Last summer, a federal judge greenlit an Ocean Township yeshiva and ruled the town had violated RLUIPA.

In May 2016, the Justice Department announced it was investigating zoning laws in Toms River after its zoning board said a rabbi needed a variance in order to use his home as a chabad.

In November 2016, an Orthodox Jewish congregation sued the Howell zoning board after it rejected plans for a religious school.

Also, in Toms River, the zoning board is scheduled June 8 to hear plans for a mosque and Islamic school following several postponements.

In neighboring Jackson, the Orthodox Jewish advocacy group Agudath Israel filed suit against that township over ordinances that prohibited the construction of schools in residential areas and banned all construction of dormitories.

Watch Jackson residents' opinion on the dorm ban in the above video.

Many Jewish high schools and colleges, known as yeshivas, are operated as boarding schools. Such schools are commonplace in Lakewood, a booming city located next door.

Like the Bernards case, the Jackson lawsuit cites alleged violations of RLUIPA. But it also accuses the town of First Amendment and Fair Housing Act violations, detailing various allegedly anti-Semitic statements made and actions taken by township officials and residents, mostly on social media.

“In our situation, we feel that it’s not about the houses of worship. It’s not about the building of a synagogue,” said Avi Schnall, director of the state chapter of Agudath Israel of America. “It’s about a movement to keep a certain element out of the town. There’s a much broader intent they’re trying to accomplish. It’s not about the building.”

Township attorney Jean Cipriani and attorneys representing Agudath Israel did not return requests for comment.

“We’re not looking for any monetary gain out of this,” Schnall said.

MORE:Jackson sued over 'discriminatory' dormitory ban

Instead, Schnall hopes a judge will reject the dormitory and school ordinances, opening up the opportunity for the township and Agudath Israel to work out compromise legislation.

“Our hope is that, when that happens, we’re able to sit back at the table with the council members and work something out to preserve the quality of life in Jackson,” Schnall said. “But to say you can’t have a dormitory anywhere or can’t have any schools in residential areas? That’s a little extreme.”

Mike Davis: 732-643-4223; mdavis@gannettnj.com

Courier News staff writer Mike Deak contributed to this report.