Safeway Inc. moved closer yesterday to gaining city approval to build a $3 million supermarket at Charles and 24th streets when Baltimore's Design Advisory Panel backed off from its previous opposition to the proposed demolition of eight buildings to make way for the project.

Panel members, who had disapproved the project twice, expressed qualified support after a community representative, Sandra Sparks, said most neighbors are satisfied with the design and believe the project will be an "important anchor" for lower Charles Village.

"I believe this is a great intrusion into the texture of the city," said panel member Phoebe Stanton. But "since the neighborhood has subsided into a general agreement, I guess there's not much we can do."

Safeway plans to raze the Chesapeake Cadillac showroom at 2401 N. Charles St., two former school administration buildings on East 25th St. and five townhouses on East 24th Street.

The design must be reviewed for compliance with city codes and traffic guidelines before a construction permit is issued, officials say. The city must seek competing proposals before turning over the school buildings.