On November 30, Kennedy Studios of Newbury Street opened its new branch store in Cambridge. The elite art boutique did not, however, locate its newest store in posh, preppy, Harvard Square.

Rather than pay upwards of $60 a square foot in rent, the gallery's owner moved down Massachusetts Avenue, past Cambridge City Hall, and settled in what many are calling the hottest commercial area in Cambridge-Central Square.

Central Square is a study in contrasts. On the one hand, the infusion of commercial development and civic improvements seem to be slowly having an effect on the square's economic outlook. As trendy stores replace mom and pop establishments, more money is pouring into the city's treasury. The hope, as echoed by city officials, is that gentrification will not place a tremendous burden on Central Square's poorer residents.

Kelvin Richard, general manager for the new art studio, firmly believes in the future of Central Square, the commercial area sandwiched between Harvard and MIT. "We'd like to bring upscale business into the neighborhood. We feel this area is on the upswing economically and want to be a part of it," says Richard.

Directly across the street from Kennedy Studios, Mary Carroll peruses the wares of the Salvation Army Thrift Center, a small-discount store where she buys most of her clothing. Mary, who has lived in Central Square for more than 40 years, laughs at the idea that her neighborhood is undergoing some sort of revitalization.

A Mugger's Paradise?

"This area is mugger's island. All there is around here is robbers and muggers and they're still raising everyone's rents," says Carroll. "This used to be the place to shop. Now everyone is scared."

A short walk up from the thrift center, Morris Nagger paints a glowing picture of the future business potential of his family's newly expanded and renovated clothing store. The Nagger family spent over $100,000 to create Coquette, a trendy fashion boutique.

"There are more people coming into the neighborhood to live and to shop," says Nagger. "We saw the expansion as an excellent business opportunity. The square has a great future," Nagger adds.

Morris Nagger does not understand why many Boston area shoppers are afraid to enter Central Square. "I'm not scared here at all, but when I go to Harvard Square, the punk hangout of Massachusetts, then I worry," says Nagger.

Central Square and its future are not easily defined. While it is clear that the city of Cambridge is determined to make the area more attractive to business and potential residents, no one, including those at City Hall, knows whether their effort will succeed.

A Plan for the Future

After several months of hearings, the city's Central Square Subcommittee, issued an action plan in November 1987 which established several development and business oriented goals:

--improve the physical and visual environment of the square;

--to strengthen the retail base of the neighborhood;