A $1.3 million donation from Harvard University to the City of Cambridge brought a stalled project to renovate parts of Harvard Square out of limbo.

The project plans to make Harvard Square more accessible to pedestrians by targeting five different areas, including the Lampoon Plaza—the asphalt expanse outside of Claverly Hall—and Palmer Street.

The project was delayed when the lowest contractors’ bids came in higher than the city’s allotted budget for the program. The donation from Harvard will make up the difference.

“We’re ready to sign a contract with the Harvard funding,” said Cambridge Community Development Project Manager Katherine F. Watkins.

The funding will likely allow the repairs and renovations to begin before students leave for summer break, according to Harvard Square Business Association President John P. DiGiovanni.

The city and the University have been working together on the project since it was first developed.

“It was this past fall that the city came to us and requested that we [financially] support the project,” said Harvard Senior Director of Community Relations Mary H. Power. “After consultation with many at the University, we agreed.”

According to Power, the University supported the donation because they saw it as “strengthening” Harvard’s “shared environment.” She added that pedestrian safety was also a major factor in the decision to approve the donation.

“It’s great to see Harvard step up to the plate,” said City Councillor Henrietta Davis.

All five of the areas to be renovated will have their cobblestone sidewalks and paved streets leveled out. Additional streetlights will also be added.

The Lampoon Plaza will include a landscaped island to help pedestrians cross Mt. Auburn Street.

But Genny E. Orr ’08 said she did not see the Plaza as a particularly unsafe area for pedestrians.

“I feel unsafe crossing most places in Cambridge,” she said.

Palmer Street will be another major target for changes. According to a press release, an outdoor theater screen will be placed on the narrow street connecting Church Street and Mass. Ave.

The street will continue to serve pedestrians and cars, but may close so events can be held in the new space.

Davis said she sees these changes as part of a long-term process started originally by the subway coming into the Square.

“At some point they started to think about how cars would get through the Square. Now they’re starting to think about the people,” she said.

“[The Square] really is an historical place, and it deserves this kind of care,” DiGiovanni said.

—Staff writer Kyle A. Magida can be reached at kmagida@fas.harvard.edu