The city yesterday threw in the baton on its plan to tear down the 70-year-old Naumburg Bandshell in Central Park after the state Court of Appeals refused to hear its case.

"We've lost, we're going to lose graciously," Parks Commissioner Betsy Gotbaum said, explaining why the city would not press the issue any further.

"I don't want to keep fighting this thing."

"That's it, we've won," proclaimed Christopher London, an architectural historian and chairman of the Coalition to Save the Naumburg Bandshell.

The Parks Department sought to demolish the limestone Beaux Arts arena after it fell into disrepair and became a hangout for drug addicts and derelicts.

A $1.2 million renovation of the park mall called for the razing of the bandshell, which sits on the concert grounds at the mall's northern end.