Cambridge Savings Bank (CSB) dropped the construction veil off its new Harvard Square building, once home to the 81-year-old Tasty diner, in front of more than 150 onlookers yesterday morning.

The building has undergone multi-million dollar renovations since November 1998 when CSB received final permission to make official changes to the historical Square plot.

During a speech given at the unveiling, CSB Chair James P. Ingram said the two-year project ran smoothly.

"We are fully leased, under budget and ahead of schedule," he said.

The site located across the street from the Harvard Coop and Au Bon Pain has traditionally been referred to as the Read Block. With its new renovations, CSB is calling the space the Farwell-Read block in honor of the two families who originally occupied the area.

"It's the center of the world," said Iten Fales, one of the founders of the Harvard Square Defense Fund.

The building will offer retail opportunities for the square in addition to much needed office space for CSB employees, according to Nelson G. Goddard, senior vice president of the bank.

Pacific Sunwear, Abercrombie & Fitch and Finagle-a-Bagel should move into the first two floors of the building and be operating by the end of summer, Goddard said.

The space was offered to the owners of the Tasty, but due to the high cost of rental and the prospect of starting over after a two-year hiatus, Tasty officials decided against moving back in.

The top level of the building will be home to CSB offices. The building's interior will combine the four stores that originally occupied the block into one grand structure that will occupy 38,000 square feet.

Goddard the biggest challenge in renovating Read Block involved aesthetic issues, since Cambridge officials must approve any changes to a Square building Crimson Erica C. Hutchins A NEW LOOK:Developers unveiled the Cambridge Savings Bank building in Harvard Square yesterday. The former home of the Tasty restaurant will feature retail stores.

that is more than 50 years old.

Project coordinators planned the building's newlook with the Cambridge Historical Commission inorder to ensure that the structure did not loseits historical character in the process of theface-lift.

The result is a new facade with the exactcharacteristics of the 1897 building, completewith the same sized windowpanes and the orange andyellow paint present more than 100 years ago.

The only additions to the appearance of thebuilding are the fiber-optic lights that outlinethe three stories.

"The lights make the building more alive-moreof a landmark," Goddard said.

Other Harvard Square and Cambridge officialswho spoke at yesterday's grand opening said theywere happy about the makeover as well.

"I think everyone who saw it was pleased abouthow it looked," said CSB Marketing RepresentativeHeidi T. Clough.

According to Goddard, Fales wore her weddinghat to the celebratory unveiling of the newbuilding.

"It's like a wedding," Fales said in a speechat the grand opening. "It brings a bank, city andcommunity together.