sean atkinson, the club's general manager, said they were alarmed to discover that the city's plans would disqualify the area from its historic designation. >> it is destroying the historical district, and that is a problem for anybody sitting in a building and wants to keep the district intact. >> reporter: they also objected to the size and frequency of the proposed concert venue and its futuristic look. >> it just seemed very aggressive, and destructive to the park. >> reporter: so, the club challenged the city in court, and one. >> the court said they broke their own laws, their own historic ordinance. they told them, you violated your own laws, and you can redesign it, and you can maybe even change your own ordinance, but you have to be ready for a challenge and do it aboveboard. >> reporter: now the plans are on hold other as the city decides what to do about its own historic preservation law and the park sits in a crossroads, whether to move forward to tomorrow preserve what is left of yesterday. >> in its new ruling, the court of appeals said san jose cannot approve its own permit