NY1 News reports that the Moondance Diner will close its doors on July 1, 2007 after 70 years in business and that it is going to be moved to a Museum in Pensylvania.

New Yorkers Bid Farewell To Last Free-Standing Manhattan Diner – NY1 News

Several other sources picked up the same story:

One More Moondance With You In The Moonlight – Gothamist.com
A marvelous run for the Moondance – Metro New York
Moondance Diner: It’s Gone – Lost New York City
Moondance Says Farwell to Manhatten - Queens Crap