BEDFORD — Construction for a new Market Basket, planned at the intersection of Route 114 and Donald Street in Bedford, has been given the go-ahead by the Bedford Planning Board. But a challenge by competitor Hannaford Bros. Co. is still pending in the state Supreme Court.

As approved, Market Basket was given the green light to construct its store at the site of the shuttered Golfland miniature golf course and the existing Slammers Sports Bar and Grill. Those properties — and one additional lot on Cote Lane — were purchased for $3.95 million in December and January by Demoulas Super Markets Inc., Market Basket's parent company.

In a July ruling, a Hillsborough County Superior Court judge “agreed that the zoning board had made a reasonable decision and upheld that decision,” according to Rick Sawyer, Bedford's planning director.

“The judge determined that Hannaford did not have standing to appeal the case, that they weren't an aggrieved party or an abutter,” said Sawyer.

Hannaford Bros. Co., which filed the suit in January, has appealed the decision. Hannaford sued Bedford over the square footage of the proposed Market Basket, arguing that the Bedford Zoning Board acted improperly when it granted a variance for the proposed Market Basket to exceed the square footage allowed for commercial buildings in Bedford. That variance, granted Nov. 16, allows Market Basket to build a store nearly double the town's 40,000-square-foot footprint limit for one-story commercial buildings.

Hannaford also argues the zoning board's decision discriminates among area businesses. In December 2008, Hannaford Bros. opened a 36,541-square-foot supermarket at the intersection of Route 101 and Jenkins Road in Bedford.

Jim Lamp, the civil engineer in charge of Market Basket's Bedford store, said competition is the motivation behind Hannaford's legal actions.

“This store's located within a stone's throw of three of Hannaford's stores,” said Lamp.

Hannaford spokesman Mike Norton said the suit was aimed at fully understanding the town's zoning policies.

“I think it would be a little bit unfair to say we're doing it to prevent somebody from building. I think we're doing it to be sure we know what the rules are.”

DeMoulas Super Markets Inc. operates 64 stores in New Hampshire and Massachusetts. Market Basket is a locally owned company. Hannaford is owned by a Belgian corporation that operates some 2,800 stories in six countries.

A new Market Basket opened several weeks ago in Hooksett, and a new supermarket is under construction on Elm Street in Manchester.

The Bedford store is expected to open in the fall of 2012, with construction beginning in spring 2012.