"The main ballroom, which is below ground and can't be used for day care, may be converted courts or used for storage space. But it will not remain a ballroom," he added.

The hotel garage will not open until later in the year after its floors-are repainted for leakage.

Rents for married graduate students will be higher than at Peabody Terrace because utilities are included in the rest rate, Cutler said.

Cutler said that the University had dropped the Continental name from the building--now officially known as "29 Garden Street"--because "we don't want tourists knocking at our door."

The dozen permanent tenants who lived in the Continental prior to its sale were relocated with the help of Chauncey, D. Steele, Jr., former owner of the hotel.

Cutler said that Harvard hired a few of the Continental's employees while Steele and the Harvard Employment Office placed most of the rest.

Under state law, the building and land at 29 Garden Street became tax exempt when Harvard purchased them. Donald C. Moulton coordinator for community affairs said that University would soon to enter negotiations with Cambridge payment on is total payment in lieu of taxes including the Continental property.

Discussions concerning an increase in Harvard payment broke off in the spring at the request of the City Council when it appeared that a new City Manager would be appointed