Harvard's real estate dealings in the Square often resemble a vast game of Monopoly, complete with real houses and hotels.

But on at least one of its properties this year, the University has found itself unable to pass Go. Plans to build a five-story hotel on the Gulf station site across the street from the Harvard Union have been up in the air since December, when members of the Faculty of Arts and Sciences (FAS) demanded that Harvard Real Estate (HRE)--the manager of Harvard's non-academic properties--reconsider the project.

Although FAS last month reached an "understanding" with Harvard's central administration that it would eventually be allowed to develop the Gulf site for academic use, the Faculty has yet to come up with a concrete proposal for the lot.

But time may have run out for the University. On Monday night, the City Council approved a change in the site's zoning which drastically curbs Harvard's ability to develop it. Harvard is threatening to sue the city, claiming that the new zoning unfairly focuses on the Gulf land.

Harvard's lack of a plan for the property may now be leading it into a legal battle, which City Solicitor Russell B. Higley says could take at least a year and cost tens of thousands of dollars.

"The lack of a specific plan for what we want to do with that site has been a problem," says Director of Planning Kathy A. Spiegelman, who argued against the new zoning for Harvard in the council. "I personally had to get up in City Council a couple weeks ago and say, 'Gosh, I don't really know what we want to do, but we want to preserve our flexibility.'"

The way Harvard operates its holdings in the Square has led many to conclude that some sort of conspiracy is afoot. During the last year, Harvard has contracted with a private developer to destroy the Harvard Motor House hotel. E-6