Citing Harvard's unwillingness to dramatically increase its in-lieu-of-tax-payments to the city, the Cambridge City Council last night went on record in opposition to a Graduate School of Design (GSD) request for a beer and wine license.

"We asked Harvard for money--they didn't listen to us, did they?" Councilor Alfred E. Velluci asked. "Now they dare to go before the license commission seeking a license," he added.

"Maybe they have drinks to get up the guts to evict working people from their homes," Councilor Saundra Graham added, referring to the GSD's two-year battle to clear an apartment house on 7 Summer Rd. to make room for office space.

The council vote is only a recommendation, and the city's license commission, which will consider the application later this month, does not have to follow the advice. Edith Groden, manager of buildings and services for the GSD, said last night the school did not intend at the moment to sell beer and wine during the day.

"It's so we can run receptions at night," she said, adding that other of the University's graduate schools have liquor licenses.

The council also voted to investigate other Harvard and MIT facilities serving liquor to see whether they might be forced to charge sales tax on the beverages. "We shouldn't be extending privileges to Harvard University, and the granting of a liquor license is nothing but a privilege." Velluci said. "Since they haven't heard our plea for help in this time of fiscal crisis, I don't see why we should help them,: he added.

Vellucci said the liquor license attack was part of an overall effort embarrass the University in hopes of winning increases in voluntary in-lieu-of-tax payments. If we continue the bombardment, the attack, the pressure, pretty soon they'll give in," he said.

University officials were unavailable for comment.