Officials in Gov. Ed Rendell's budget office have told Mayor Tom Murphy that the state will commit $1 million toward renovating the Hazlett Theater on the North Side.

"This is the money that says it's going to happen," said Deborah McClain, executive director of the Northside Leadership Conference.

The Hazlett Theater, which is the owned by the city and was the former home of the Pittsburgh Public Theater, was closed in 2002, but it has been reopened occasionally for performances by local arts groups.

Janet Sarbaugh, arts and culture program officer for the Howard Heinz Endowment, praised Jane Werner, executive director of the Children's Museum of Pittsburgh, Tom Sokolowski, director of The Andy Warhol Museum, and consultants Robin Kaye and David Nash for their commitment to saving the theater.

"That theater has been such a labor of love. They just did not give up. It's just going to be a boon for small arts organizations and just terrific for the North Side community," Sarbaugh said.

The Heinz Endowment pledged $500,000 toward renovating the theater, but the money is contingent upon the signing of a three-year lease with the city.

Sokolowski said yesterday that the R.K. Mellon Foundation has awarded a $300,000 grant to fund the theater's operating costs. If all goes as planned, the renovated theater will open in January.

The New Hazlett Theater became a nonprofit organization last year and its board members hope to sign a lease with the city next week. By Friday, Sokolowski added, the board will choose an architect to do the renovations.

State Reps. Don Walko and Jake Wheatley, who serve on the House Appropriations Committee, lobbied for the funding.