The State College Borough Council last night approved plans for restructuring the annual Phi Psi 500, which will no longer include alcohol or a race.

Matthew Swartley, co-chairman of the Phi Psi 500, said the philanthropy has been changed in hopes of increasing interest in the event. Last year's Phi Psi 500 raised only about $7,500 -- compared to three years ago when it generated $22,000.

The event will instead concentrate on a parade and skit performances. The charitable event will be held March 31 to benefit the local Association for Retarded Citizens.

In 1987, council asked Phi Kappa Psi to start a three-year plan to phase alcohol out of the race, which had participants running a course through town in costume and stopping at various bars to drink a beer.

"I think the brothers are to be commended. They've lived up to a promise they made to council a few years ago," said Councilman R. Thomas Berner after the meeting.

Council approved the event on the condition that officials also screen for costumes that may be religiously offensive or racial. Organizers, who had already arranged for members from the Center for Women's Students to check for sexist costumes, agreed to the concession.

The event will also include a food court in the McAllister parking lot after the parade.

In other business, council voted against the borough manager's recommendation to buy an option on a downtown student apartment complex, which would have been converted into low-cost senior citizen housing.

Planning Commission Director Carl Hess said the source of subsidies to purchase the $1.2 million property was uncertain.