This is the Observatory of the LEGO City. It is destinated to investigate the cosmos in various wavelenghts, Radio, InfraRed, Visible, UltraViolet and Gamma.
It's an optical observatory, whose primary mirror is two meters wide (in minifig scale).
The Galilego Observatory depends on the LEGO City Gobrickment, and can be visited while the scientifics are working.

To wach the video of the Observatory working go here: http://www.flickr.com/photos/lokosuperfluolegoman/4907514225/in/photostream/

Also you have more information here:
http://www.flickr.com/photos/lokosuperfluolegoman/4907952278/in/photostream/
http://www.mocpages.com/moc.php/220835
http://www.hispalug.com/foro/index.php?topic=10838.0