On December 31, 1960, Guy Payne deeded the Inn to the University, with a life tenancy for himself and his wife. Part of the agreement was that the University would establish a $50,000.00 endowment fund for the Christian Association. The Inn continued to operate until 1971, when it was closed permanently on August 30. The building was razed in 1973.

The center of the original observatory building, which collapsed during renovations in 1962, had been located at the lamppost between the two trees next to Seventh Street. Note also the fire tower which had been constructed as an addition to Trax Hall ( the former East College ). This now became the major entrance to the building.