Allegheny County Council yesterday approved the much-debated sale of the county Health Department building in Oakland and did not contest County Executive Dan Onorato's veto of a proposal to impose county fees on nonprofit organizations.

In fact, council voted unanimously to sustain Mr. Onorato's veto of the fee on nonprofit organizations, after Mr. Onorato said the measure violates state law.

Both measures were overwhelmingly approved by council two weeks ago. But Mr. Onorato vetoed the sale of the Health Department building because of an amendment that Councilman Chuck McCullough, R-Upper St. Clair, attached to the sale ordinance.

That amendment established a special fund for the money generated by the sale. The account would be placed in a fund separate from the county's general operating budget and under direct control of the council.

Mr. Onorato said Mr. McCullough's amendment was illegal because it would throw the county's 2009 budget out of balance and the special fund it would create was not mentioned in the title of the sale -- both violations of the home rule charter.

Council members later admitted they had not read the two-page amendment before it was approved in a 13-1 vote.

Council President Rich Fitzgerald, D-Squirrel Hill, recommended that Mr. Onorato veto the sale, which was re-introduced and approved yesterday without Mr. McCullough's amendment.

The the county Health Department building and property at 3333 Forbes Ave. will be sold for $4.9 million and will be redeveloped as a hotel, an office building and a garage.

Also included in the sale, which was approved on a 10-3 vote, was an amendment by Councilman William Robinson, D-Hill District, to require the construction project to adhere to the county's policy on hiring women and minorities.

Council also approved an amendment by Councilman James Burn, D-Millvale, requiring that no county dollars be used to fund the construction project.

Council members Joan Cleary, D-Brentwood, Matt Drozd, R-Ross, and Mr. McCullough voted against the sale.

Councilman Nick Futules, D-Verona, abstained and Amanda Green, D-Stanton Heights, did not vote because she was not present at the meeting.

The building was sold to a group of developers comprised of: Massaro Properties, Langholz Wilson Ellis, Kratsa Properties and Tasso Katselas Associates.

In a separate action, council members reversed their course yesterday and voted unanimously to sustain Mr. Onorato's veto of an "essential services fee" on nonprofit organizations.

"I don't think we had all the legal opinions we needed on this issue two weeks ago," said Mr. Fitzgerald, airing a sentiment that most council members gave as their reason for letting Mr. Onorato's veto stand.

Even Mr. McCullough, who initially sponsored the essential services fee, voted with the rest of his colleagues to sustain Mr. Onorato's veto in a 14-0 vote.

Mr. McCullough said he chose not to oppose the proposal because he preferred to see council work in concert with Mr. Onorato and Pittsburgh City Council on an effort to secure voluntary contributions from the city's major nonprofit organizations.

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