Continental Price Set at $1.2 Million

The University signed an agreement Wednesday setting the purchase price of the Hotel Continental at $1,190,000.

The sale itself and the date of transference of the property is still tentative, pending the resolution of several "legal complications," Robin Schmidt, assistant to the vice president for Government and Community Affairs, said yesterday.

Schmidit said, however, that the University expects the transaction will be completed within the next two months.

The hotel will be used to accommodate the overflow of undergraduates next year due to the increase in the number of incoming freshmen women. The increase is a result of President Bok's decision to change the ratio of undergraduate men to women to 2.5 to 1.

Schmidt would not specify the nature of the legal complications preventing completion of the deal.

Chauncey D. Steele Jr., the owner of the Continental, also refused to disclose the cause of the delay.

Nice and Polite

"It's a big situation and there's a lot of be resolved," he said. "We're concerned about doing the thing a nicely and politely as possible for everyone concerned."

Schmidt said that Stephen S.J. Hall, vice president for Administration, has been working on "several areas of prime concern to the University," including relocation of the Continental's tenants and employees, and payments to the City of Cambridge in lieu of taxes.

As a non-profit institution, Harvard is exempt from property taxes. Rather than simply removing the Continental from Cambridge's steadily shrinking tax rolls, Harvard plans to work out an arrangement with the City to insure continued revenues, Schmidt said.

Edward Gulesarian, manager of the Sheraton Commander Hotel, located across Garden St. from the Continental, said that the Sheraton is able to accommodate the 19 permanent tenants currently residing at the Continental.

Both the Sheraton and the Continental rent apartments as well as hotel rooms. Their rates are nearly identical, with apartments rented from $300 to $900 per month.

Gulesarian said that several of the Continental's tenants have already moved to the Sheraton or arranged to do so. "We have spaces to accommodate anyone who wishes to come here," he said.

Gulesarian said that he would give employees laid off due to the purchase of the Continental "first crack at jobs that open up" at the Sheraton.

Schmidt also indicated that Harvard may be able to employ other displaced Continental employees.

Schmidt said the University expects to convert the building into a dormitory to house up to 176 students. Details concerning who will reside there and exactly what sort of renovations will be made will be released when the transaction is completed