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City environments often lack textured areas, contain repetitive structures, strong lighting changes and therefore are very difficult for standard 3D modeling pipelines. We present a novel unified framework for creating 3D city models which overcomes these difficulties by exploiting image segmentation cues as well as presence of dominant scene orientations and piecewise planar structures. Given panoramic street view sequences, we first demonstrate how to robustly estimate camera poses without a need for bundle adjustment and propose a multi-view stereo method which operates directly on panoramas, while enforcing the piecewise planarity constraints in the sweeping stage. At last, we propose a new depth fusion method which exploits the constraints of urban environments and combines advantages of volumetric and viewpoint based fusion methods. Our technique avoids expensive voxelization of space, operates directly on 3D reconstructed points through effective kd-tree representation, and obtains a final surface by tessellation of backprojections of those points into the reference image.