PITTSBURGH -- A Pittsburgh Hill District group said it has reached a tentative community benefits agreement with the Penguins, the city, Allegheny County and the Sports and Exhibition Authority.

The One Hill Coalition has been negotiating with the groups about improvements to the community near where the Pens new hockey arena will be built. One Hill leaders said they want to make sure the community isn’t left behind after the arena is built.

"We'll do everything we can to stop the construction until we have a community benefits agreement," Carl Redwood of One Hill said in February. "We're negotiating now, but that's our formal position."

"I am very pleased with the positive progress we have made to date," Mayor Luke Ravenstahl said on Wednesday. "We are closer to our goal of ensuring the Hill District grows stronger with the new arena development."

"Obviously it's real close," said Allegheny County Chief Executive Dan Onorato. "And it's because both sides were willing to take some of the controversial issues off the table and focus on where there was common ground with five or six major points. Once it's signed by all the parties, I'll be happy to really explain where we were, what's in, what's out and how we'll deal with these issues."

When Hill District residents started on the negotiations, they began with what they called a blueprint for a livable Hill.

"We're very pleased to say we believe most of the aspect of our original platform that we've been able to achieve victories in," said one Hill District leader.

The agreement says the Pens will contribute $500,000 a year for six years toward Hill District development with an option for six more years. Also, the first week of hiring for jobs in the development will be reserved for Hill District residents only.

The Pens and city will also contribute $2 million for a new grocery store.

North Shore casino owner Don Barden, who initially said he would donate $3 million to development, said he is considering withdrawing the offer.

"We weren’t going to get the money anyhow," said another Hill District leader. "It was pledged for development in the Hill District. There are a lot of developers interested in developing in our community. We want to encourage them to come and build."

The agreement is not yet final though. The One Hill Coalition's full membership still has to approve the agreement. They will be voting on it on May 3.

In February, One Hill filed a legal appeal over the new arena, arguing that the Planning Commission did several things wrong when it approved the new master plan. One Hill said the Planning Commission failed to consider studies showing potential parking problems and did not allow some people to testify against changes in the plan.

It is expected that the new arena will be ready for the team's 2010 season.

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