But the institute was long in arrears to Harvard, and John L. Dotson III '82, acting president of the institute's graduate board, said last spring that the institute could not pay back Harvard, largely as a result of the restaurant's debt.

"Our ability to pay the rent to a large degree was affected by the restaurant. Unfortunately, the restaurant fell behind, and that in turn infringed upon our ability to pay Harvard," he said in April.

To resolve the latest dispute, Illingworth said that Scott Levitan, director of University and Commercial Real Estate, has been searching for a spot in Harvard Square that Up Stairs could move to. Levitan identifies himself as "the designated agent who acts for Harvard" in dealings the restaurant.

Hughes and Deibel said that they are amenable to the idea of moving their restaurant, if the new site meets all their needs.

"We would need a garden, and a space to do the weddings we do now. But that needs to be in an appropriate time frame, with appropriate support," Deibel said.

But Deibel said that they are taking reservations through 2001 and do not plan on leaving the Pudding building before then.

Illinworth said he hoped to use this academic year to plan FAS renovations for the building, start construction in the summer of 2001 and be done in time for fall 2002.