Final answer:
The allowance for 'K's continued operation despite the area being zoned for single-family residences is known as spot zoning. Spot zoning is when an individual property is zoned differently from the surrounding properties for the private interests of the owner.
Step-by-step explanation:
The allowance for 'K's continued operation despite the area being zoned for single-family residences is known as spot zoning. Spot zoning is when an individual property is zoned differently from the surrounding properties for the private interests of the owner. In this case, the town amended the zoning ordinance to allow 'K' to continue operating the café in the newly annexed area.
Spot zoning can be subject to challenge unless there is a reasonable basis for distinguishing the property. It is important to note that zoning regulations cannot be based solely on race or occupancy.
Overall, spot zoning allows for flexibility in zoning regulations to accommodate certain circumstances or businesses that are deemed valuable to the community or have unique characteristics.