Harvard Hillel officers said yesterday that they have begun negotiations with Harvard Real Estate Inc. (HRE) to erect a building on the University-owned lot adjacent to the Fly Club garden.

According to Richard S. Rosenbloom, president of Hillel's board of directors and Sarnoff professor of business administration, in an effort to secure a site for a new home, the campus Jewish organization has begun talks with HRE, which manages the University's non-academic holdings.

"We are in the process of negotiations with Harvard for the use of the land at the corner of Mt. Auburn and Plympton St., and those negotiations are not complete," Rosenbloom said yesterday.

Hillel, now housed at 74 Mt. Auburn St., has been looking for a new site for three years, Rosenbloom said.

According to Hillel Student Coordinating Council Chair John S. Savett '90, initial talks began after the Hillel learned this spring that the half-acre site between the Fly Club's portion of the garden and Plympton St. "might be available."

Rosenbloom said the project for a new building is still in its very early stages. No designs have been made, and Hillel has not yet hired an architect, he said.

Savett said Hillel has set approximate costs for a new structure but has not specified funding sources.

"We haven't pinned down the exact amount--[it will be] something like $3 million," Savett said.

HRE President Kristin S. Demong could not be reached for comment.

Dean of the College L. Fred Jewett '57 and Dean of Students Archie C. Epps III, who oversee student use of the University-owned lot, said yesterday they did not know of the plans.

Hillel needs a new building to accommodate offices and a library now housed at other sites, Savett said. In addition, the organization needs more spacefor audiences at speaking events, he said.

"[With] the facility we're in now, with thenumber of things we do and with religious servicesgoing on at the same time, we don't have enoughroom," Savett said.

Hillel, whose existing building belongs to theUniversity, will return it to the Faculty of Artsand Sciences when it moves, Savett said.

Although the half-acre site under discussionlies adjacent to the Fly Club's garden, Savettsaid the final club is not involved.

"There is no dealing with the Fly Club. This iscompletely a deal with Hillel and the University."

Fly Club president Jeremy V. Stein '90 couldnot be reached for comment