While expansion has all but stopped, newconstruction on Harvard buildings near residentialareas remains a source of tension.
"Real estate encroachment on residentialneighborhoods, while slowed for the moment,remains a potential source of anxiety," says citycouncillor Kathleen Leahy Born.
"Development and the congestion it brings arethe major source of contention between Harvard andresidents," adds Duehay.
The city takes two key financial hits forHarvard, one because of the University'stax-exempt status and another because if Harvard'sinfluence in escalating Cambridge rents, accordingto Duehay.
The councillor says Cambridge used to belargely blue collar, but it became more businessand service-oriented as skilled, specializedgraduates of Harvard and MIT settled down in thecity.
"The housing market in Cambridge is so hotbecause of Harvard and MIT," Wolf says.
Duehay says rent control was imposed inCambridge to protect blue collar workers as wellas artists who wanted to live near the University.
As for its own property, the University is notrequired to pay taxes on any property used foreducational or research purposes.
"Buying more land--and not paying fulltaxes--is a problem," Duehay says. "Institutionsare like business-except in regards to taxes."
Duehay says the $1.2 million payment Harvardmakes annually to the city in lieu of taxes isinsignificant compared to the approximately $30-40million Harvard would pay if it were a for-profitcorporation.
Still, Harvard's payments represent an unusualcommitment for a university. Most with theexception of MIT do not give their cities anymoney in lieu of taxes, according to Duehay, whocalls Harvard's payments "revolutionary."
In part because of Harvard's cooperation inproviding money, the city may actually hold theUniversity to a higher standard.
"We have very high expectations," says Duehay."The more that is done, the more we expect."
Jeffrey N. Gell contributed to the reportingof this story.