MANCHESTER — Anagnost Investments will not move forward with plans for a 68,374-square-foot medical office building that would have included a small restaurant.

The medical center would have been located near the Dartmouth Hitchcock Medical Center. It was up for approval before the city planning board this week, but the board was informed that the plans have been withdrawn.

Developer Dick Anagnost said the company would have had to build around the Public Service Co. power lines at the site, and found it cost prohibitive to cram the building into the allocated space. In addition to medical office space, the building would have included a 49-seat restaurant.

The property has been owned for nearly 20 years by Shop ‘N Save Supermarkets of Massachusetts, a unit of Hannaford Bros. Supermarkets of Portland, Maine.

Anagnost says his firm still holds an option to buy the land and could propose a different project in the future.

In another project under consideration in the city, the planning board could give final approval to a proposal for a Dunkin’ Donuts shop on Granite Street at its business meeting on Oct. 18.

Board members heard more detailed information about the expected traffic pattens for the new restaurant. Questions had been raised previously about how lines of traffic would queue up for service at the drive-up window, particularly during the morning traffic-and-caffeine hours.

The doughnut shop would be built by the Andrade Management Group, whose coffee shop holdings include the Dunkin’ Donuts stores on Manchester’s West Side.

Andrade is proposing building the shop on a city-owned parcel bounded by Granite, Second and Douglas streets. A nearby Dunkin Donuts shop at Granite and Main streets does not have enough room for a drive-up window, which has become a mainstay of the company’s locations.

Purchase of the city parcel by the Andrade interests is expected to close this month.

bsmith@unionleader.com