People on the street are passing by the bar and grill restaurant with the red awning.
People on the street are walking by an ice cream stand.
In sentence 1 people are passing by (they could be doing other things than walking). A bar and grill is not an ice cream stand.
exists e1 s1 x1 x2 x3 x4 x5 x6 x7.(n_awning(x7) & a_red(s1) & Theme(s1,x7) & n_restaurant(x5) & of(x5,x6) & n_grill(x6) & n_bar(x4) & subset_of(x5,x3) & subset_of(x4,x3) & n_street(x2) & by(e1,x3) & with(x3,x7) & Actor(e1,x1) & v_pass(e1) & on(x1,x2) & n_people(x1))
exists e1 x1 x2 x3 x4 x5.(n_street(x2) & by(e1,x3) & n_stand(x3) & of(x3,x5) & n_cream(x5) & of(x3,x4) & n_ice(x4) & Actor(e1,x1) & v_walk(e1) & on(x1,x2) & n_people(x1))