Do we have any link that confirms this story and its details?
I found this response statement from the United Jewish Community of the Virginia Peninsula:
The Jewish Community of the Virginia Peninsula is shocked and alarmed at LoveLight Placemaking’s decision to cancel a menorah lighting scheduled for the Second Sundays Art and Music Festival on Dec 10 in Williamsburg – claiming it did not want to appear to choose sides in the Israel-Hamas conflict. To be clear, the menorah lighting, which was to be led by a local community rabbi, had nothing to do with Israel or the conflict.
Yet, appallingly, the event organizer claimed that a Chanukah celebration would send a message that the festival was "supporting the killing/bombing of thousands of men, women, and children," -- and even went a step further, by offering to reinstate the event if it was done under a banner calling for a ceasefire.
https://ujcvp.org/ujc-chai-lights/f/statement-on-second-sunday%E2%80%99s-cancellation-of-hanukkah-celebration