George Lucas Faces Museum Legal Challenge

A lawsuit that aims to block Star Wars creator George Lucas from building a $400m museum along Chicago's lakefront has been given approval to move forward.

Friends of the Parks, a non-profit organisation, wants to halt plans to build the Lucas Museum of Narrative Art.

The group argues the construction project violates public-trust laws that restrict development along Lake Michigan.

Chicago's city council approved the 300,000 sq ft museum site in October.

A judge on Thursday ruled the Friends of the Parks legal challenge could go forward, almost certainly delaying the build.

Chicago aggressively pursued the project - beating San Francisco, which is not far from Lucas' sprawling Skywalker Ranch.

The filmmaker said he chose Chicago because the California city was "doodling around".

The 71-year-old is no stranger to construction wrangles.

Lucas angered his wealthy California neighbours last year when he filed plans to build low-income housing on his Marin County property.

He previously engaged in a bitter dispute with neighbours over plans to build a new movie studio on the estate, which he later scrapped.

Construction on the 224-unit affordable housing complex is expected to break ground in 2018.