A citizens group has lost another legal battle in efforts to stop commercial development on the 207-acre site of the former Dixmont State Hospital in Kilbuck.

Pennsylvania Transportation Secretary Allen Biehler issued a ruling Thursday denying an appeal by Communities First! to gain legal standing in the case.

At the same time, Biehler dismissed the 400-member organization's challenge of a PennDOT-issued highway occupancy permit. The permit will enable Emsworth-based developer, ASC, to widen Ohio River Boulevard and install signals at a new intersection providing access to the project --River Pointe Plaza -- near Camp Horne Road.

"Our group will hold a pow-wow with our attorney and determine our next move," said Bob Keir, spokesman for Communities First!, whose concerns include increased traffic, environmental impacts and lower property values in the Ohio River corridor. "They haven't ruled on the merits of our case, only to claim once again that we do not have standing to oppose the permit. We have to find a way around it."

In June, a PennDOT hearing officer ruled the citizens organization does not have legal standing to intervene.

In a seven-page opinion, Biehler concluded that the hearing officer, Atty. Andrew H. Cline, "correctly applied the law."

Communities First! contends PennDOT used outdated information in calculating traffic and, therefore, it should never have issued a permit to ASC. It claims the impact will be more far-reaching, affecting Emsworth, Glenfield, Avalon, Ben Avon, Osborn and Ohio Township as well as Kilbuck.

ASC has been trying for years to develop the site where a Wal-Mart Supercenter and other retail stores are planned.