When a Target store arrives in East Liberty, the city's Urban Redevelopment Authority wants to make sure it finds an inviting environment.

Toward that end, the URA board is expected to consider a $2 million tax increment financing plan tomorrow to raise funds for traffic, sidewalk and other infrastructure improvements in support of the development and revitalization of East Liberty.

Under the East Liberty TIF plan, 75 percent of the real estate tax revenue generated by the Target store would be used to pay off the debt associated with the infrastructure improvements.

None of the money would be used on the 5-acre Target site itself, said Robert Rubinstein, URA director of economic development.

The $2 million TIF would be part of $7 million in improvements that would include conversion of Penn Circle South and Penn Circle East from one-way to two-way traffic between Highland and Collins avenues.

In addition, the Port Authority bus loop at Penn Avenue and Penn Circle East would be revamped to turn a five-way intersection into a four-way.

Mr. Rubinstein said the change was sought by Target as part of the deal to bring a store to East Liberty.

There also would be sidewalk, crosswalk, lighting and curb improvements designed to enhance the redeveloping East Liberty commercial and residential core.

Besides the $2 million in new TIF money, another $2.5 million from a previously approved Bakery Square tax increment package would be used to finance the work. The URA also is counting on $2 million in state funding.

The East Liberty TIF would run 20 years. The Target site is expected to generate $285,564 a year in real estate taxes, of which $214,173 would go to pay off the tax increment financing.

That would leave $71,391 to be shared between the city, the school district and Allegheny County. The site currently produces $45,887 in tax revenue, according to the URA.

The financing plan also must be approved by the city, the county and the school district.

Target originally was hoping to open the two-story store by fall of next year, but now is looking at July 2011, according to the URA.

Also tomorrow, the board is expected to consider the sale of the former South Hills High School on Mount Washington to a private developer for $1 for the proposed $22.5 million conversion of the building into housing for seniors.

On Mount Washington, developer A.M. Rodriguez Associates is proposing to convert the high school into 84 affordable and 22 market rate apartments for seniors.

It also is planning 12,000 to 15,000 square feet of commercial space that is to include a YMCA and an early childhood development center.

Besides the $1 sale of the property, the board will consider a $2 million Pittsburgh Development Fund bridge loan and a $3 million Rental Housing Development and Improvement Program loan as part of the project's financing.

The developer also expects to receive a $1.5 million state capital grant. It hopes to close on financing in the first quarter and have the first units ready by June 2010.

Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.