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Harvard to Pay $40M for Boston Land

"We could expect in light of this to have a substantial increase," Duehay said.

He said that Harvard's increased property holdings in Cambridge since the agreement was formed and "the way that they have negotiated with Boston" are both encouraging signs that Harvard will give the city more money.

University officials, however, said they do not expect the new deal to change their agreement with Cambridge.

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"I expect there to be inquiries from Cambridge officials as to what this means," said Paul S. Grogan, vice president for government, community and public affairs. "But the agreement does not trigger a change."

Under the new plan, Harvard will pay about the same amount to both cities in lieu of taxes, and Harvard officials said this should satisfy both Cambridge and Boston.

Building Tension

The $12 million increase in payments to Boston reflects an increased Harvard presence in the Boston neighborhood of Allston and a mutual desire to improve town-gown relations.

Routine discussions on payments in lieu of taxes began in October 1997, when the Business School revealed plans to build several three- to five-story buildings and renovate others on its Allston campus.

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