The University lost the first round yesterday in its attempt to have part of its Observatory Hill land rezoned to permit apartment house construction. The Cambridge Planning Board recommended to the City Council that the University's petition for a zoning change he denied.

The planning board further suggested that the Observatory grounds be turned into a neighborhood park since the College has "no immediate need" of the land for expansion of its academic plant.

Board Sees Park Dearth

The suggestions by the council were referred to its committee on ordinances. Edward Reynolds '15, Administrative Vice-President of the University, withheld comment last night on the action, pending a closer study of the board's report.

M.L.T. professor Frederick J. Adams, chairman of the Planning Board, said that the University failed into explain at the public hearing on October 13 exactly how it planned to develop the land if the petition were granted.

Lack of parks, the board pointed out, has become a serious problem in Cambridge.