Community and business groups wrangling over Cambridge Savings Bank's proposal to demolish four historic buildings must strike a balance between historical preservation and urban renewal.

The debated buildings house 14 tenants, including two Harvard Square landmark restaurants, The Tasty and Wursthaus. They were constructed in the late 1700s, joined by a single wooden facade in 1896 and are listed on the National Register of Historic Places.

A new four-story shopping mall and open-air arcade would be constructed on the site of the razed buildings and would offer 60,000 square feet of retail space, according to W. Easley Hamner, president of Stubbins Associates.

Hamner, whose architectural firm prepared the proposal, also suggests overhauling the Pit and redesigning the entrance to the MBTA subway system to permit more open space and easier access to the arcade.

"We've been criticized for being too excellent, too ornate, too grand," Hamner says. "They [said it can't] happen in Harvard Square. Well, it ought to happen in Harvard Square."

But preservationists and several city councillors counter that the small shops, antique buildings and homey atmosphere of the Square are responsible for its popularity among residents and tourists alike.

"Harvard Square doesn't need to be like any other major city," says City Councillor Kathy Born. "Who's going to come here for something they could get anyplace else?"

But James P. Ingram, president of the Cambridge Savings Bank, says the building must be demolished because one-third of the office space and the entire basement has been declared unsafe by fire department officials.

Preserving the building would cost millions of dollars and might not even be possible because of the extent of its deterioration.

"We have looked instead toward the historically responsible redevelopment of that site," Ingram says.

City Councillor Francis H. Duehay '55 says he was unmoved by the bank's proposal. While agreeing that the building is in poor shape, Duehay says any development in Harvard Square must be guided by historical--not economic--concerns.

"They bought that building knowing it was an old building and in disrepair," Duehay says. "All things that are falling down can be repaired."

Battle Plans

Duehay says he has drafted legislation which he hopes will stall the bank's plans to tear down what he calls a historic site.

Duehay says he directed the Cambridge Historical Commission to draft legislation which would declare nearly every older building in the Square a historical landmark, in order to prevent similar proposals to tear down Square buildings.