A more that $2 million piece of University land has remained for eight years in what Harvard and city officials last week called an "underutilized state."

The land is home to the blue domed, Georgian-style gas station that has a perenially lit neon "Gulf" sign flashing across Massachussetts Ave. into the windows of Lamont Library and the Freshman Union.

The Cambridge landmark was bought by Harvard Real Estate in September 1979 for $750,000. Since then it has been used for a parking lot and a rent-a-car agency. Harvard officials said they have had no plans to develop the site.

But in the past two weeks, according to the rent-a-car and parking lot managers, a number of unidentified surveyors and photographers have been looking at the land and building.

Harvard Real Estate officials were unavailable for comment.

Other officials said they did not know about the surveyors and that the land was not about to be sold.

"Obviously the current use is not the best use of property." said Jacquelyn O'Neill, associate vice president for state and community affairs, "Eventually we'll get around to it."

"People have not been focusing their attentions there," she said. "It's not particularly attractive but for the time being, it's what's there. The University takes time. Institutions are slow to awaken to their resources."

Land Banking

Buying land with no immediate development plans is a common Harvard Real Estate strategy knowns as "land banking" said Robert Silverman, director of the Harvard Planning Group.

"The University always keeps a small number of building sites in reserve for new construction when it is needed," he said. "They probably bought the Gulf station back then because it's location is an ideal site for long term use."

When the University bought the land and building, the Gulf station had been out of operation. About a year later, Fitz Auto Park, Inc. began leasing part of the building and the parking lot and opened up the gas lines.

Seven years ago, Thrifty Rent-a-Car opened an office, renting part of the building, garage and lot from Fitz. The Cambridge Yellow Cab Co. began renting the upstairs three years ago on a temporary basis.

"Over the years, some people in the business community suggested the site be used for a parking garage," said Silverman. "But no one at Harvard thought that would be a good use for the land. It is located rather close to campus and a more appropriate use would relate better to the principle activities of University life."

In the meantime, the station has become in need of maintenance, including a paint job and electrical rewiring, according to Thrifty manager Dennis Demes. The lease specifies that Fitz maintain the building. They repainted it when they first bought it but haven't worked on it since, according to Fitz Vice President John P. Casey.