Court of Queen's Bench Justice Alan MacInnes has dismissed an application to stop the demolition of the Eaton's building in downtown Winnipeg.

The reasons for the decision will be provided in the next few days, but MacInnes did say the application by the Coalition to Save the Eaton's Building was without merit. MacInnes also ordered the coalition to pay the costs for court proceedings.

"I'm obviously happy about the ruling," said Mayor Glen Murray. "Change comes with losses sometimes and I think that this is overall a very positive step forward."

Colin MacArthur, the lawyer for the True North Project, which wants to build a sports and entertainment complex on the site of the vacant building, says he is pleased the decision will allow his client to proceed with construction plans.

Coalition members say they are disappointed with the decision, but not surprised.

"I don't feel a sense of defeat at all," said coalition head Christine Common-Singh. "I feel we brought out some very important points in court. The judge has a very different view of the world from the coalition's view, and that's fair."

The group will review the judge's written reasons for the decision before considering an appeal.

On Thursday, the group plans to announce an alternate use for the 97-year-old building. The coalition had argued that the City of Winnipeg prevented the public from expressing views on the future of the Eaton's building before approving plans to demolish the structure.

The court battle has delayed construction plans for the True North project. The developers must now obtain a demolition permit. If successful, the Eaton's building will start to come down in October, and the new arena will be completed by October 2003.