A group of local businessmen yesterday failed in its first attempt to block construction of a $60 million research center for the National Aeronautics and Space Administration in Kendall Square near M.I.T.

Over the group's objections, the Cambridge City Council voted 6-3 to request $663,000 in federal funds for planning of urban renewal in the square, a step necessary before NASA can begin building.

Earlier in the day, the businessmen, who work in Kendall Square and will be forced to move, had obtained a restraining order to prohibit the Council from requesting the funds. On appeal by the City, however, the restraining order was "dissolved" because no direct "hardship" is involved in the early planning stage.

The City still must face the group's challenge that Kendall Square "cannot and does not legally qualify as a valid subject for an urban renewal project." A hearing on this question in the Middlesex County Superior Court will be held shortly.

Unless the Kendall Square businessmen--known as the Committee for the Preservation of Cambridge Industry--are successful, the City Council's action yesterday begins a series of technical steps which will culminate in the removal of 94 companies from the Kendall Square area and the construction of the NASA project.

The Cambridge Redevelopment Authority will now prepare a comprehensive plan of urban renewal for the area. When completed, the plan must be presented to the public at an open hearing; then the Council must approve it. Finally, the plan must be accepted by the federal and state agencies which will support the project.

The urban renewal money, $15 million, will be used to buy the land in Kendall Square, demolish the present buildings, improve the area's utilities, and make general improvement--all in preparation for the NASA complex.

Relocation Hardest

Almost all observers agree that relocation is the most difficult problem in the project. At yesterday's Council meeting, Paul J. Frank, acting director of the Cambridge Redevelopment Authority, assured councillor Thomas Coates that the agency was "dead serious on wanting to keep every firm in Cambridge," but admitted that "now I can't tell you how we're going to do it."

Although 13 of the development's 42 acres will be set aside for private companies, this space will not be nearly enough for all the displaced firms.

Frank said that a full time management consultant would be hired to study relocation problems.

Vellucci Disagrees

Councillor Alfred E. Vellucci, criticizing the project, told the Council that "I can't see why we must dislocate that whole area when we have other areas we can offer to NASA." He referred to a tract of land near the Arthur D. Little Company on Route 2.

Coates, Vellucci and Councillor Walter J. Sullivan voted against the request for feredal funds.