Allegheny County Chief Executive Dan Onorato is prepared to offer tax breaks for the proposed makeover of the Fifth and Forbes retail corridor Downtown, as long as the development is accompanied by significant private investment.

Mr. Onorato said last week that he has had discussions with PNC Financial Services Group and the private Pittsburgh Task Force about their plans to revitalize the shabby corridor, which has fallen on hard times with the closings of the Lazarus-Macy's and the Lord & Taylor department stores and numerous smaller retailers.

At the same time that Mr. Onorato is pledging county financial help, Gov. Ed Rendell said last week that PNC is seeking "significant" state funding for its proposed retail, office and residential complex on Fifth Avenue. It also has discussed possible tax breaks, in the range of $18 million, with the city Urban Redevelopment Authority.

City and county financial help most likely would be packaged in the form of tax increment financing, in which future tax revenues are earmarked to pay off a portion of development costs. Mr. Onorato has been reluctant in the past to commit county taxpayer dollars for a new arena, but he said Downtown is the "core of the county" and deserves attention by his government.

"This is important to me. We've got to fix Fifth and Forbes," he said.

The PNC project is one of two aimed at transforming the corridor. Washington D.C.-based developer Madison Marquette also is considering a proposed retail and residential complex on lower Fifth Avenue. That project is being spearheaded by the Pittsburgh Task Force, a private group made up of the Pittsburgh Downtown Partnership and local foundations.

Mr. Onorato stressed that if the county is going to help, there must be significant private investment in both projects.

"The county will be part of any plan that is driven by the private sector to get this done. If there's some public financing that's involved with this, we'll be part of that as long as there's a big private investment," he said.

The county has yet to receive a formal request from either PNC or the Pittsburgh Task Force for tax increment financing, but it expects to get a proposal soon, Mr. Onorato said.

Together, the PNC and Madison Marquette projects could be the catalysts needed to re-energize the downtrodden Downtown shopping district. They also could provide a good send-off to Mayor Tom Murphy, who leaves office at the end of the year and who has seen his efforts to revitalize the corridor fall short over the last decade.

After a ceremony last week to announce the move of the American Eagle Outfitters Inc. headquarters to the SouthSide Works complex, Mr. Rendell said he hoped to be back in the city in the next month with more good news about the proposed PNC project, which he said could be "the catalyst making Downtown Pittsburgh grow like Downtown Philadelphia has."

"We're working on [state aid] and I think we'll have some good news. I really do," the governor said.

Mr. Onorato and Mr. Murphy also plan to approach Mr. Rendell about state funding for the overall Fifth and Forbes corridor. But Mr. Onorato said he first wants to see the plans developed by PNC and Madison Marquette and the level of private funding involved before making any requests of the governor.

"We are very pleased with Mr. Onorato's support and welcome his involvement and that of the county in bringing about the Fifth Avenue renewal," said Herb Burger, chairman of the Pittsburgh Task Force.

The PNC complex would be built adjacent to its headquarters at the corner of Fifth and Wood Street. PNC owns virtually all of one side of Fifth between Wood and Liberty Avenue. The firm has been talking to the Downtown law firm of Reed Smith about being a possible anchor tenant for the development, though no commitments have been made.

Madison Marquette is planning retail and residential on the opposite side of the block between Wood and Market, utilizing the vacant URA-owned G.C. Murphy's store and other government-owned properties on Fifth and Forbes avenues. It may need public sector help for aspects like parking garages and street improvements.

"If PNC moves ahead with its development, that would be an enormous step forward for lower Fifth Avenue and Liberty and will beautifully complement what is being planned for Fifth Avenue and Forbes," Mr. Burger said. "These two projects can work hand-in-hand to reinvigorate the core city."