refused permission to add on two levels of office space above the rear carpark.

But a development application submitted by the West End Development Corporation for a third retail building at Dockyard was given the go-ahead.

The Development Applications Board cited three main reasons for turning down ACE's November, 1992 application: The proposed development would bring the building height to five stories which would exceed the maximum height permitted in the Pitts Bay Road Commercial Area under the 1992 Bermuda Plan; By virtue of its height and massing it would have "an adverse impact'' on the amenity of the residential environment of the area; and The addition of two levels of office space would increase traffic and increase the need for parking -- the extra parking plan submitted was "insufficient''.

Scarborough Property Holdings Ltd., jointly owned by BF&M and ACE, may appeal the decision, a spokesman said.

Wedco was given the go-ahead for phase three of its retail-space expansion project at the Dockyard.

Wedco wants to create a second retail centre in a building next to the two-storey Clocktower mini-mall, which has just been extended by 4,000 square feet.

A Wedco official said the additional shop spaces were already being marketed.

The application was submitted in January.