The panel gave its approval for the project, ruling againstcharges brought by a group known as San Franciscans Upholding theDowntown Plan, which filed a Superior Court lawsuit against theBloomingdale's developers, saying that the proposal violated statelaw and the city planning code. The group says that the proposalcalls for demolishing part of the historic Emporium building,located on Fifth and Market Streets.

The court ruled that the Emporium building has no market value,so it could be demolished. The proposal by Forest City DevelopmentCalifornia Inc. will save the Emporium's historic dome and itsMarket Street façade. However, it will demolish the rest of thebuilding to build approximately 500,000-sf of retail space.

The $500 million Bloomingdale's project includes 1.58 millionsf, consisting of a 275,000-sf Bloomingdale's, 220,000-sf of officespace, a nine-screen theater, 125,000-sf of additional retailspace, and a 230-room hotel.